Evening journal., 1918-12-12
RLVENUE BILL
fight NOW ON
Program TO Levy 1920 Tax
Declared Unsound by
Republicans
FUTURE, TOO
is UNCERTAIN

WASHINGTON. Dec i2.-The partisan
fight over passage Of the pending rev
enue bin providing s6,OOOOOOOOO this
year and Si,OOO,OOOOOO for 1920. through
taxation, opened in the senate when
the measure came up for debate.
In presenting a minority report Of The
measure the Republicans declared them
selves unalterably opposed to it in It's
present form.
The minority report was offered by
senator Penrose In addition TO his
signature. it bore those OF Senators
Lodge, McCumber, Smoot, Townsend
and Dillingham;.
The Republicans declared they agreed
with the Democratic majority that the
levies for the current year as embodied
in the bill are the best that could be
framed under the war conditions, but
they asserted conditions are now too
nebulous TO hremit Of drafting a tax bin
for 1920.
Senator Thomas. Of Colorado, also
submitted a dissenting report. He voiced
objection TO the war eXcess-prOflts tax
schedule contained in the bin. asserting
That its basis 'is arbitrary. unjust and
indefensible." Senators SmOOt and La
Toilette viii submit individual dissent
ing reports tomorrow.
Senator Simmons, chairman Of the
Senate Finance Committee, which re-
wrote the revenue bill passed by the
House last season, during many weeks
Of deliberation, opened the debate yes
terday. He declared the opposition OF
the Republicans to the 1920 provision
Of the bill will result in a loss OF 81
000O00000 20 the individual taxpayers
Of the country should the efforts Of
the minority TO prevent passage Of the
bill with the "twO-in-0ne" be success
ful.
In every instance" he said, "the in
creased taxation has been made neces-
sary by the development Of events.
This was disclosed before the begin
ming Of each taxable year. 1t enabled
MS TO prepare a revenue bin which
would meet The requirements Of the
government.
1--WE had no system OF internal tax
alton until the Mexican trouble arose.
and later the European war. The mat
ter Immediately was taken up and leg
Station enacted 10 bring in the pro-
DortiOnate share Of funds required for
Unexpectedly heavy expenditures.
Nobody could have foreseen what
followed the entrance OF the United
states into the war. It became ap-
parent at once that a great army must
be raised and equipped. It made the
adoption OF an entirely new policy
necessary.
The minority insists that tax reduc-
tions be made at some later date. I'm
less an extra session Of Congress IS
called this must go over until the first
Of next December. Producers Of rev.
anue during the interim will be unable
TO fix proper prices for their products.
The principles Of self-prOtectlon as well
as selflshness viii prevail. They will
mark up their prices to conform 60
present rates and not to meet promised
reductions. The prodcers viii have So
000O000OO IN their pockets, collected
from the people. beyond what will meet
the requirements Of the Government
Neither the Government nor the people
VIII get this money. Those taxes will
remain in the pockets Of the great in
dustrial taxpayers. They will 20 10
increase the great and over-weening
profits they make
This situation Is caused through the
desire Of one political party 10 perform
The reductions IN taxation. This. VIII
cost the people s2.OO0,OO0OOO, and the
government will derive no benefit from
r."
The minority report promised the
support Of the Republicans to the tax
provisions for the current year, but in