The Washington times., 1918-09-21
SENATE PLANS TO
REWR|TE TAX BILL

Announcing a determination to gel
the $4,000. OOO. 900 war tax bill
, through before the November cleo
ton IL possible, the Senate Finances
| Committee today began revision OF
the measure which passed the House
late yesterday, $50 to o.
Radical changes in some Of its
| chief provisions are in prospect.
| Senator Shoots recent characterize
ton OF the bill as an "absurdity" Is
generally concurred in by Finance
| Committee members. They set out
today to rewrite the entire bill.
The clash OF House and Senate
ideas may prevent final enactment
OF the bill until after the elections
House leaders frankly favor a Con-
gressional recess in November, and
the postponement of action on the
tax bill until December /. Senate
leaders are extremely hostile to this
program and Will agree to 1t only
/ if 1t becomes apparent that the meas
ure can't pass before election any
way.
Fight On Profits Tax.
The chief battle ground between
the two houses probably win be the
tax on profits. The Senate committee
is wholly out OF sympathy with the
House alternative war and excess
profits tax plan Under this plan the
Treasury Department Is to levy
whichever tax will produce more
revenue-either q war profits tax of
so per cent on purely war profits or
an excess profits tax ranging from
IS per cent of profits OF between s
and Is per cent of invested capital to
20 per cent of profits in excess of 20
per cent on invested capital.
The alternative feature of this plan
is roundly condemned by most men,
bers of the Senate committee, who
declare that IL two plans can be legis-
lated into q bill, a dozen or thirty
could just as well be provided. The
more kinds Of alternative taxes there
are. they argue. the more loopholes
are provided for escape from the
maximum that ought to be paid.
Up to this point the Senate COM
mittee is almost unanimous. but when
IL comes to substituting a plan for
the House provision every member
has a different idea Among sug-
gested provisions are:
Suggested Plans.
Tax war profits so to 100 per cent
and excess profits 90. any concern
that made both war and excess profits
to pay both taxes, while those not
making war profits only the excess
profits tax.
Put a fiat tax OF from 8 to Is
per cent on all business, regardless
OF whether profits are due to the war
n anN - g. = Il
termined by the percentage OF profit
in the taxable year as compared with
profits in three pre- war years; no
business to have any exemptions Of
any kind.
Increase present excess pronts
taxes.
Senator Borah. leader of the wealth
CONSUMPTION group who last session
urged the imposition Of a heavy war
profits tax. predicted today that what
ever plan is finally agreed on. the so
per cent tax on war profits will be
in the bill as finally enacted.
'T am convinced that will stay"
said Borah. 81 believe Congress
would find 1t easier to levy just and
equitable taxes II il could disasso-
ciate ideas of taxation applicable to
peace from war taxation problems.
But whatever we do, we must see
that those who profit from the war
pay the heaviest share OF its none
tary cost"
Luxury Taxes To Stay.
The luxury taxes seem likely to re-
main largely as nxed in the House
bill. They range from 10 to 20 per
cent on various articles denominated
luxurles and semi-luxuries.
An effort will be made to reduce
the liquor tax OF IS q gallon to IS,
on the ground that the higher rate
will make withdrawal OF whiskey
from bond for sale prohibitive, and
will produce less revenue than the
lower tax
AS the bill passed the House II 10
estimated il will raise In round
figures $500, 900. 900. OF this, S3.200.-
600, 900 is to come from war and ex-
cess profits; s2.377, 100000 from in
comes, and from all other sources,
including liquor. estates, and lux
uries, $2.523, Oo0, 900.