Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-12-11
OUGHT NOW TO FIX
TAX RATE FOR 1920
Senate Democrats Say 1t Means
Earlier Reduction in Liv-
ing Costs.
REPUBLICANS ARE OPPOSED
File Minority Report Urging
Against Haste During Time
of Uncertainty.
REPUBLICANS ARE OPPOSED

W ASfiiNIION. December 10 Lower
prices for food and other nccessarics of
life Will come with the reduction of
taxes TO the prc-war standard, Scna-
tor simmons told the senate to-day
In opening the debat. on the Sc 900 :
100000 revenue bill. Unless the taxes
are reduced now. he said. producers
Will mark up their prices TO conform
10 the present rates and thereby he
enabled 10 keep $4,000. .000. 900 in their
cwn pockets when the tax rates are
finally lowered. Senator Simmons was
presenting the view Of the lajority OF
the Finance Committee that the pres
cnt bill should cut the rates to be col
icctcd in 1920 SO that not more than
SiooO.OOO.00o in revenue would be
raised. This View is opposed by the
Republican Senator'S on the commit
tee because they want to handle the
TAX reductions themselves when they
get control OF Congress OF this Re-
publican opposition Senator Simmons
sa id:
This situation is caused through the
aeslrc OF one political party 10 per-
reductions in taxation. This will cost
the people $4,000. O00. 900 and tho gov
ernment will derive no benefit from it,
MEANS UNNECESSARY
ENACTIONS FROM PRODUCERS
In further explanation of why he
believed IL necessary to reduce the 1920
taxes in the present bill. Senator Sim
mons said:
The minority insists that the tax
reductions be made at some later date.
InieSs an extra session OF Congress is
called. this must go over until the first
OF next December. Producers OF rcvc-
TO hX proper prices FIR their products
the principles OF s"lf-protection as
we'll as selhshness Will prevail. I'm
necessary tax eXactions will be made
70 nee, the unknown requirements.
Producers will not take the risk Prices
Will be marked up -.nd neither the gov
erninent nor the people. viii! get the
money IT Will remain in the pockets
or, or me great industrial taxpayers and
Will go to increase the great and over
wecninC profits they make"
Republican opposition to the 1920
plan was accen'nated by the filing of
the minority report. signed by Sena-
,5ss Msss renrose: I. peHnsylvania: Lodge.
kota; Smoot. Ctah; Townsend, Mich
igan. and Dillingham;. Vermont SEN
ator La Toilette. Of Wisconsin. will file
separate minority report
In their report. the Republican SEN
ators take the ground that no one can
foresee the everis of the coming
twelve months; and that any attempt
Is lin violation OF every sound prin-
ciplc OF legislative procedure and
economically is failacious and nm
DECLARE EVERY BUSINESS
MAN KNOWS TAXES WILL. BE CUT
1t is pointed out that every bust
ness man knows that taxes will be
lowered as the result Of n reduction
that changing conditions during the
time the bill was under consideration
enabled the reduction OF the present
bill by $4,000. 900, 900 is cited as an ar
~ "a m c
upon policy for the year to come.
Who can foresee clearly results
from the readjustmcnt and reconstruct
ton program inevitably impending and
bound TO follow the return OF peace"
the report continues. Both capital
and labor are interested vitaily in
cd by them in way that cannot he
forcto Id. The problem OF the high cost
Of living is not the least of those await
ing attention, and a wise and carefully
framed AT the proper time with full
Information as to the facts. No pro-
gram for the near or, even distan'
the merest outlines, suggestions and
preliminaries---and yet. on the threshold
of these nebuious conditions, it IS pro-
posed 10 lay down. hard and fast
scheme OF taxation for the future.
THOMAS THINKS EXCESS
PROFITS RATE TOO HIGH
Senator Thomas. Democrat. of Colo
rado. filed a dissenting report on the
war excess profits section. He believes
the exec ST. profits rates too high and
objects particularly TO the imposition
of the tax upon all classes of business
whose profits fall within the terms
of the section. AS substitute. he
proposed that all profits of any corpor-
alton in excess OF the profits of repre-
sentative corporations in the same
business be treated as war profits and
taxed accordingly.
Senator Simmons defended the COM
mittee rates on excess profits which
are higher than those of the present
law and lower than those fixed In the
House. He said he could not agree
with Secretary McAdoo that the excess
profits rates should be the same us in
the existing law, because il this were
done . great many Of the large cor
porations whose profits were heavy be-
fore the war and correspondingly large
during tn" war period would escape
taxation.
The debate will be continued to-mor-
row.