Pine Bluff daily graphic., 1918-12-18
ALL FACTIONS
 UNITING FOR
 REVENUE BILL
Some of the Features on Which The
 Country's Revenues Will be Based.

Washington, Dec. 17.--Rapid prog ress on the war revenue bill was made today by the senate, with leaders ap- parently uniting to hasten it's passage by late this week or at least before the holidays.
 After Senator Penrose, of Pennsyl- vania, Senior Republican member of the Finance Committee, had delivered d prepared address urging prompt passage of the bill, but disapproving it's provisions to fix 1920 tax rates, the Senate with only handful of mem- bers present and with perfunctory dis cussion, adopted many important amendments and approved pages of minor provisions. Consideration of all 1920 rates. however, was postponed by unanimous consent.
 Among numerous sections adopted were:
 The war excess profits rates for 1919 ranging from Otto 80 percent as revised by the finance committe and estimated to raise $2,4O0,OO0,OOO as compared with $3,2OO, 100000 under the house bill:
 Individual income surtaxes, ranging from one to 65 percent, as revised by the finance committee and designed to secure ,45,069,000, as compared with $1,06S, 100000 under the house bill.
 Rates of $6.40 and $2.2O per gallon, respectively on distilled spirits for beverage and non-beverage purposes, as reduced from the respective $S to $40 gallon rates of the house bill and estimated to raise $450,000, ,0O0 as again $760,000,0OO under the house bill
 Taxes on freight passenger. express, pullman and oil pipe line transporta- tion as proposed in the finance com mittee's revisien, and estimated to yield $229 100000 and reeal on July 1st next, of the law increasing first class mail rates from to cents an ounce and providing for restoration of the old pre-war rates, involving re- duction of about $5O,0O0,O0.
 When these provisions were adopted, reservations were made by several Senators of their right to offer sub- stitutes or amendments later.
 The committee amendment for the restoration of pre-war postage rates on letters and postcards next July was adopted without discussion, but action was deferred on the companion provision for repeal of the existing zone rates on second class postage and substitution of the committee's new modified zone plan. Senator Hardwick, of Georgia, announced that he desired to discuss the second class postage section.
 Besides adopting many sections in- volving the finance cOmmittee's rate changes, the Senate approved without debate, virtually all of the administra- tive prOislOns of the income tax and other sections, including those for Amortization, allowances to oil, gas, we'll. timber and mining enterprises and for consolidated tax ..eturns
 Among important questions remain ing, besides the 1920 tax rates, are the income normal rates, almost the entire war excess profits section es- tate and inheritance taxes, the in- surance clauses, the child labor amendment, luxury taxes, and a few of the excise and other miscellaneous taxes.
 Prompt passage of the war revenue bill was urged in the Senate today by Senator Penrose of Pennsylvania Senior Republican member of the fin ance committee.
 Senator Penrose gave his views when the Senate reached the income tax section which provides for reduct- ion of rates in 1920. Chairman Sim mons of the finance. Committee, in charge of the bill. had formally an. nounced that every effort would be made to reach a final vote on the measure before the holidays. Senator La Toilette gave notice that he would offer later a substitl !, TOT, or move for reconsideration of the income tax section.
 Although strongly dissenting from the provision for 1920 taxes, Senator Penrose urged early passage of the bill with view to revision later. He favored abolishing war excess profits taxes and substitution of new sys- tenn of flat income taxes. 'lt is because the bill is essentially a war measure" he said, that am willing to support it.
 undoubtedly many defects will have to be provided for by remdeial legislation in the future. It seems, AOWSVcI, u uS IIlc OCSt IudJ Cdu DC had at the present time and it is un- occasionally better than any preced- ing law"
 Opposing the proposed 1920 rates, Senator Penrose said it is impossible now to forecast the government s needs and industrial condition in 1920 and declared that "as a continuing levy ] anything like the present rate would operate strongly to repress and dis courage American initiative and en- terprise"
 | He suggested that the bills plan of raising one third of the govern ment's revenue requirements by taxes and two thirds by bonds is excessive, pointing out that England has raised during the war but 22 percent by taxes and France only IA percent. Senator Penrose said that, under existing unsettled economic conditions,
 it is impossible to make the tariff an important factor in revenue problems, i but he expressed the hone "that at the