Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-12-10
REVENUE BILL
Reported to Senate by
Finance Com.
Debate cesins Today on Msasurs-
Effect Transition From War to
Peace Basis Shown in Revision
Prohibition Legislation on Present
and Future Problems of Taxation
Outlined

Washington, Dec. 9.-Enects of tho
nations transition from a war to a
peace basis and of prohibition Iesis-
iation on the present and future
prolems of taxation are outlined in
the Senate finance committees report
on the war revenue bill filed today,
by Chairman Simmons. The report,
explains the steps taken to revise
the House. bill. SO as to raise by tax
alton next year s5,91s. 466. 900 instead
of $3.50, 100000 as planned by the
House before the signing Of the ar
mistice and the enactment Of pro-
hibition legislation. Proposed taxes,
for 1920 IT $4,000, 600. 900, the reason fer
fixing them at this time and the
manner in which they will be raised
also are legislated. The most dis
tlnct changes made by the Senate in
the house draft of the bill are noted
by the committees report as FOL
lows Elimination OF the corporation =,
tax on undistributed corporate earn
ings fixing 20 per cent. maximum/
on bonafide sales Of mines and oil
and gas wells; elimination of ten tax
On new state and municipal bonds.
substitution of a single war excess
Profits tax for the alternative DIar/-
exclusion Of individuals and pa-,-
ncrships from war excess profits tax
alton and reduction Of the taxes On
beverages and tobacco
Debate on the measures will begir
tomorrow with statement by SEN
ator Simmons. A dissenting report
on the plan 10 Tx 1920 taxes in the
pending bill will be filed by Senator
Penrose Of Pennsylvania for the Re-
publican's finance committee. Sepa-
rate reviews also will be presented
by Senator's Smoot of Utah and La
Toilette of Wisconsin, Republicans.
The country has right to know
how soon and in what degree the
burden of war taxes can prudcnIly be
reduced" Senator Simmons says.
During this period of reconstruct iii.
business. particularly new business,
IS entitled TO 20 FORWARD without tire
burden OF IN so per cent tax on war
profits.
For 1890. the report estimates a
'C'NStfoh VI @ispNo,oou,VVV by
ing The so per cent war profits tax
reduction Of the excess profits rates
and reduction from Il to per ccn;.
IN the normal rate on individual in
comes and OF the corporation tax.
4 further reduction Of about $500
100000. It was estimated, will occur
from miscellaneous sources and
5hrinkage in beverage revenues. The
main outline Of the program proposed
~ the Ccr&nI,ttee thus becomes clear.
the report yates. Fer the fiscal year
ta1" = - Planned IT, raise nearly 81
80 tc3. ccJ from income and profits
.aZe9 ma something neer SI.400 O00,-
900 srcfn othrr ..otirccs; 'Ior the fisca!
year .a-e il is planned 70 raise some
what -; than 5000 100000 from in
con:e aad profit axes and about ST.
COG o.. 80 ..onr other sources. To
fat aG1 o3.2iy to tax the war profits
OF J.: soaid constitute Il manifest
miscarriage % fiscal justice. Not to
provide t0T she reduction Of the war
profits ta,. would be equally inexcus-
able. Beverage taxes under the House
bill were estimated to raise S1.137,-
000, 600 during the first IL months of
operation and $3.50. 900, 900 for the 1919
fiscal year. At the present time under
Continued on Page 6-celumn q. !