The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1918-09-13
WEALTHY ARE TAXED
TO ABSOLUTE LIMIT,
1T IS ASSERTED

naLe OF TIC wal revenue Dill continued
in the House today, with members of
the Ways and Means Committee de-
livering speeches in which they crit
icised some features of the measure,
but promised to vote for it on final
passage and predicted for it the pa
triotic support of the country.
Leaders plan to end general dis
cussion Thursday with view to TAX
ing up the bill Friday under a five
minute debate rule for consideration
of amendments.
In the meantime the Ways and
means Committee will consider spe-
cial amendments to facilitate the sale
of Liberty Bonds, which were suggest
ed today by the Treasury Depart
ment.
Principal speakers were Represent
atives Hull of Tennessee, Democrat,
author of the present income tax law;
Longworth of Ohio and Green of To-
wa, representing members of the
Ways and Means Committee. Repre-
sentative Caraway of Arkansas, Dem
ocrat, attacked the proposal made by
some members that a tax be placed
on cotton.
Dry Move Discussed.
He said no protest against such a
tax had come from cotton growers,
but declared that such legislation
would be Outrageous. The South,
he said, is bearing its share of the
war cost.
At the Senate Finance Committee
hearings on the bill witnesses and
senators criticised the excess profits
rates. Effect of prohibition legisla-
ton on the nations revenue also was
brought up.
Representative Hull told the House
that the nations tax budget after the
war will be $4,000,000,0 annually
and warned that little of this can be
made up by tariff rate increases, as
suggested by some members. He urg-
ed consumption levies on sugar, cof-
fee, silk and rubber.
Declaring that wealthy persons are
taxed to "the absolute limit" in the
bill. Representative longworth said
that for future increased revenue tax
es on necessary articles of daily con-
sumption must be resorted to.
He predicted that these taxes may
have to be imposed sooner than Con-
gress had expected because of pend
ing wartime prohibition legislation
which, he estimated, would reduce
federal revenue by $1,500,000,00O.
Loss of s5OO,OOO,O 900
Longworth also said that the Pres
ident's order stopping the manufac-
ture of beer after December /, would
cause loss of $500, 100000 in revenue
between that date and the time the
"dry" legislation becomes effective.
Several changes to the bill were
urged by witnesses before the Senate
Finance Committee. Robert r. Reed,
representing the Investment Bankers
Association, asked that the Treasury
Department be authorized to make
adjustments in administering the war
profits and income taxes where in
equalities exist by reason of the fail
ure of the House bill to take into con-
sideration the amount of invested cap
ital.
Reed also objected to the proposed
tax on State and municipal bonds, be-
cause under this section of the bill, he
said, Liberty Bonds of the first issue
would be taxed, although they were
sold with the distinct understanding
that they would tax-free.
Whiskey Tax Protested
A request by James W. Kinnear Of
Pittsburgh that gifts to charity by
corporations be exempted on the same
basis as gifts by individuals was op-
posed by Senator Penrose, who said
he read recently that corporation
having a cost-plus contract with the
government had made donation to
the American Red Cross and charged
it to expenses on which it received
percentage of profit. "a
Levi Mayer of Chicago, represent
ing distillers' organization, asked
that the So barrel tax proposed on
whiskey held in bond after wartime
prohibition becomes effective be re-
duced. He said that under the prohi-
bition law the holders of the whiskey
could not sell it and that the tax is
unreasonable.
Enormous waste" of government
expenditures was charged by Repre-
sentative Green, who, like Longworth.
deplored failure to increase tariff
rates. Representative Hull said at is
utterly futile" to attempt to obtain any
considerable revenues from tariff in
creases.
at must be made clear" he said,
"that we cannot later in normal con-
ditions expect a maximum customs
house levy of more than $500, 900 900,
while our after-war expenditures will
be nearly 100000, 100000. In my
opinion the largest possible income
tax levy should be made for war pur-
poses.' .-
No Peace With FreebOOters
He regretted, he said, that collec-
ton at the source of income taxes had
been abandoned without fair test
and information at the source SUBJ
sNtuted.
"This BILL" he said, twill offer a
real test of patriotism. The people
will periodically and unfinchingly
shoulder this war-tax burden. Next to
fighting on the front lines, there is no
better test of patriotism than the will
ingness of the citizen to cheerfully pay
the maximum of taxes for tho c,inport