The Sentinel=record., 1918-11-22
REDUCTION ON INDIVIDUAL
 AND CORPORATION RATES
With War rlme Prohibition in Effect it Win Be Necessary to Make Up tho One BiIlon Lost in Taxes By Placing the Burden on More Essential Pro. ducts.

Washington, Nov. 2l.--A detailed plan for revising the pending Rns
 revenue bill go as to impose taxes ond provide revenues aggregatinr about s6.00o,000,000 next year and si.-
 GOO O00N0 in 1920, in line with Sec rotary McAdoo's recommendations
 was submitted today to the senate finance committee by Chairman Sgru-- mons.
 A decision on tho plan was derer.- rod but vote may be reached to- morrow
 Republican members vigorously op- posed the proposal to establish 1920 tax rates in the measure, but Chair man Simmons said the were advised that if they o5struct thesa.nzrsklty va
 plan to provide 1920 ta,satioifsNl straight leyy of so per cent on war profits. to furnish the government nee essary revenues will Do put through.
 Senator Simmons plan 10 reduce tue
 bill 10 sS,O00,00o .000 for 1919 proposes
 retention of the house rslteB on in- comes and war excess profits, except the six per cent differeEtia on nn~- distributed corporation earnings; luxnries and retention of other spec
 ial misccllcaneons taxes, but at rates not to exceed an increase Of ono third
 oyer those cf the existing law For 1920 Senator Siumon's plan
 contemplates abolishing the war prof. it's tax, reduction of individual and corporations normal income rates from 12 to per cent. and reduction by about one third in tue excess prof it's schedule as now proposed in the revised committee draft. Also the special miscellaneous taxes would be continued at the 1919 rates.
 Both plans for 1919 and 1920 as pre- scented by Senator Simmons were said to have tho approval of the treas- ury department and also generally of bhe democratic members of tho finance committee.
 Republicans indicated general satis faction with the 1919 suggestions, but again opposed the 1920 extension. Senator Simmons said inc demo cratic committeeman are determined upon the 1920 plan because they be- lieye 1t Is unwise to fix taxes only tor 1919, without informing the business world of the future program The committee hopes to have the bill reay soon after the new session
 of congress c1nyenes December :, but the republican opposition and other considerations. t was generally con ceded may delay its enactment until next January.
 In his proposal for reducing the bill to $6.000,0 for 1919, Chairnld1s Simmons took Into consideration tnu
 prospective loss of about $i.000.00o.
 the war time" prohibition Legislation ssgned today by President Wilson. His plan conte.nplatcs raising abcut $5.0Go 100000 next year from the income ant: war excess profits taxes and the re-
 maining $i,0a0, ,000,e00 from tne other
 sources in the bill. but Ut the reduce cd rates suggested
 l The proposed reduction Of $200e, 000000 in taxes for 1919 Senator Sitn
 mons explained would be accomplish
 cd principally through elemination of the war profits tax and reduction from
 IF to s per cent of the rate on the
 normal corporations and incomes of indiyiduals and together with rednc- tions of about one third in the exceSs profits rates
 The high sur-tax rates on iiidiyid- l lual incomes would run through 1920 ---------------t t1------~--------