The daily times. [volume] (Wilson, N.C.) 1902-1936, 1918-11-22
SIMMONS WOULD
REVISE TAX BILL:
Raise s6,ooo,ooo, 900 in 1919
and $4,OOO,OO0,000 in
1920
DECREASE GRADUALLY

Washington, D. c., Nov. 22.--At
a meeting of the finance committee
yesterday, Senator F. NJ. Simmons
proposad to the committee lIscal
plan for the fiscal year 1919 ana
1920. The plan outlined by him III
a statement made to the committee
is in substance as follows:
Reform the bill SO as to raise LOT
the fiscal year 1919, $4,000, 100000
in accordance with the estimate OF
the Senate as to the requirements OIL
the government for these years re-
spectively.
Retain in this bill, the income, ex-
cess profits, and war profits rates III
the house bill with the exception OF
the six per cent differential upon un-
distributed earnings of corporations
The elimination Of this six per cent
ulNSltulldl, LO6VlhOl WIN
changes made by the Senate with
reference to amortization, depletion,
depreciation etc, would reduce the
revenue to the government from the
sources to approximately $1,000
900 900 for the fiscal year 1919.
While these taxes will be paid in the
year 1919, they will be based upon
the incomes and earnings for the
calendar year 1919. These earnings
represent war profits have in the
| main been collected and are in
pocket, and it is iclt they should be
the pay increases proposed
That the additional S1,000,000,-
900 required to beraised from the
| other sources of taxation contained
in the pending bill as amended by
tha Senate.
Eliminate altogether the twenty
per cent tax imposed upon the price
of articles sold in excess of certain
fixed prices. Retain the Senate
amendment as to inheritance taxes
| Retain the other excise, special
and miscellaneous taxes provided III
the bill as amended in the Senate,
which are in the main those of the
House bill, but whore the House bill
rate is in excess of the rate Of the
present law, change the rate so as
to provide a rate averaging about
thirty-three and one-third per cent
in excess of the rates imposed in the
existing law in cases Of new sources
of taxation of this character, includ-
ed either in the House or Senate
bill, change the rates so as to con-
form to this scheme of reduction.
In obtaining this general average
of thirty-three and one-third per
cent increase from the rates of the
existing law, it is planned that the
rate of increase vii run from twen-
ty-five to forty per cent.
The theory upon which the in
come and profit taxes are differen-
tiated from the excise, special and
miscellaneous taxes of the bill is
based upon the fact that in the case
of incomes, and excess profits, the
taxes for the present fiscal year will
be levied upon income made during
the calendar year 1918, whereas in
the case Of the other taxes the in
creases will apply chiefly to transac-
tions taking place during the calen-
dar year 1919, or since the termina-
tion of war conditions.
That for the year 1920 the pro-
posed reduction of 5000, 900 900 be
accomplished through the elimina-
tion of the war profits tax and the
reduction of the rormal individual
income and the corporation income
tax to eight per cent, and reduc-
tion of around thirty-three and one
third per cent, from the excess pro-
fits tax proposed in the Senate bill
as now drafted.