The states-graphic. (Brownsville, Tenn.) 1???-1984, 1918-08-23
EIGHTY PER CENT
WAR PROFITS TAX
Advocated by Senator Borah in Pend
ing $4,000, oO0, 900 War Revenue Bill:
Attention directed to Earning of
s15S,000,O00 by. Steel Corporation

Washington, Aug. 1.-THE United
States Steel corporation realized pro-
fits of S15S, 100000 for the last quarter
Senator Borah of Idaho stated today
in advocating the proposed incorpora-
ton of an so per cent war profits tax
in the pending SS,0O0,0OO,0O0 revenue
bill.
Eliminating all taxes levied upon the
corporation, he added, it would still
have a clear profit of S62,000,000, OF
four times what the normal peace pro-
fit would be.
Had an 80 per cent war profits tax
been provided in the last revenue bill
passed by congress, said Mr.. Borah,
the corporation would still have had
very large earnings"
81 doubt whether the steel corpora
ton would have seriously objected to
an so per cent war profits tax, but the
timid souls who make revenue laws are
supersensitive with regard to their
constituency" he added.
He expressed the opinion that such
tax had been provided in the last
revenue bill, would have been salts
factory to the great body of business
men throughout the country" Con-
gress having "stupendously erred to
the vast disadvantage of the American
people," in first refusing to accept the
tax, would pass the revenue bill with
the tax provided in it as zone of the
most effective ways of dealing with
exhorbitant profits" he said.
The food administration will adopt
q wholly different policy than that
which it has followed in the past with
regard to food profteers, Senator Bo-
rah predicted, because, he stated, she
''very largest profits are made by thdse
dealing in foodstuffs."
Senator Borah's statement follows:
"The several reports of the Federal
trade commission and the treasury
make it apparent that congress m4st
share the responsibility with others
for having failed to do its duty in fram
ing the last revenue bill.
"There were few men, perhaps a
dozen, who insist upon levying war
profits tax to the extent of at least 80
per cent. This would have given the
business of the country its peacApro-
fits, plus 20 per cent Of war pxfits,
which ought to have been, and, in my
judgment, would have been satisfac-
tory to the great body of busineA nm
throughout the country. -
Past 'd;iisadvsll.l 9
American People. Fortunate ID u 9
we have fully arrived in belated fash
ION, as We have with some other things
with regard to the war, at a correct
and courageous policy of taxation's
Il think we will pass a reventR
Dill with at least 80 per cent of war
Profits tax, and that will be one Of the
most effective methods of dealing with
exhorbitant profits.
"One of the most striking features
OF these reports is that the very Iare-
est profits are made by those dealing
IN toodstuffS, and another striking fea.
lure is that these foodstuffs are gener-
ally under the control of the food adj
mlnlstration. expect to see the food
administration adopt different policy
than that which it has followed in the
past, In view of these revelations
THE United States Steel Cornora.
tlon realized profits of $153, 900 900 for
the last quarter. Putting aside all tax
es, it would still have about $50 900
COO profits. This is about four times |
The peace profits. So, had we taken "a |
per cent of their war profits, thew
would still have had very large earn. |
ihgs.
i doubt whether the steel cornora-
ton would have seriously objected to
an 81 per cent profits tax, but the
tlmld souls who make the revenue
laws are supersensitive with reoard 81