The sun., 1918-10-09
SENATE COMMITTEE
CUTS WHISKEY TAX
Reduces Levy on Distilled
Spirits From SO a Gallon
to S8.40.
POLITICS, SAYS G. 0. p.
Senator's Charge Move Is e.
fort by Democrats to Pre-.
vent Reprisals by VETS.
Special DespatcA to THr snN


WASHINGTON, Oct. S.-The Senai.
Committee on Finance made a materia,
, cut to-day in the tax rate for distilled
spirits. pruning the levy down from 81
per gallon for spirits withdrawn from
bond for beverage rurr 1ses TO $40 A
gallon and making a cut OF $40 a gal
lon on non-beverage alcohol similarly
withdrawn. Under the bill as passed by
the House even non-beverage alcohol
was to have been taxed $40 a gallon.
The Finance Comtnittee to-day set thi.
rate at $500.
The larger Withdrawals assumed bv
the Senate as certain to follow a cut in
the tax rate such as was adopted to-day
by them is expected to be more certain to
insure revenue productivity than tn.
higher rate adopted by the House.
Republicans See Politics.
According to computations furnished
the House Committee on Ways ana
Means an aggregate income Of si,iOO,-
100000 would have been realized from
tho two sources Of distilled liquor taxa
ton. Certainly no less than this will
flow into the Treasury il the predictions
Of the Finance Committee tax trainers
are borne out
On the point OF reducing the tax on
distilled liquors there was some dissen-
sion among tho Republican Senators.
They made the suggestive charge that
back OF the movement to reduce the
taxes were Democratic fears Of parti-
san reprisal in wet States, OF which the
Democrats stand in grave fear
The protracted delay in bringing TIE
food stimulation production bill with I;s
bone dry prohibition rider TO vote
following upon the numerous conference,
over 1t 1t was also charged was a part
OF the same plan TO forestall unfavorabls
action by the vets against the Demo-
Gratis.
The taxes appearing In the House bill
with regard to matted and spurious
beverages were approved by the Finance
Committee, but the floor tax on whiskey
was reduced from $40 TO 1920 a gallon.
A tax of per cent on the amount OF
transportation charge for the carriage
or oil by pipe lines was imposed by tho
Finance Committee as substitute for
the . n per cent. rate fixed by the House
bill.
No changes were effected, however. in
the remainder OF the transportation tax
list.
All Cigarettes Taxed the Same,
The committee altered the method OF
leVying the cigarette tax by striking out
me dinerential 80 that all grades OF
paper shelled cigars" will pay a Ike
rate or taxation, or $40 n thousand
nder the House bill the cheaper grades
OF cigarettes enjoyed a lower rate Of
taxation than the high grade article.
AS measure OF bookkeeping con-
venience for the Treasury Department
the Senate changed the rate of tax on
tobacco from 26 cents 10
"a cents pound. All the other features
or the House bills tobacco schedule
were adopted.
The motion picture business won
slight concession from the Senate COM
nitiee through fundamental. change n
The rate of admissions tax. Under the
House bill the tax levied was two cents
Tor each 10 cents OF admission charge
The Senate made It one cent for every
i've cents of admission charge SO that
The is cent shows will admit patrons
'or Is cents gross instead OF 10 cents.
The committee members believe that
his will benefit the industry greatly
The Ways and Means Committee
OF soft drink and soda foun-
ain beverage taxes was left exactly -
ramed by the House. Then the COM
nittee passed over for future corsidera-
ion those sections OF the bill dealing
With the manufacture OF near beer ara
'!milar limitations OF once popular bsy.
Dom beverages.