New-York tribune., 1919-01-08
Democratic Leader Joins
Republicans in Battle
Against Wilson's Ideas
Gives Different Reasons
RAISING of $8,OOO,OOO,OOO
or More in 1919 and Curb
on Bond Issues His Policy
By Theodore M. Knappen

WASHINGTON, Jan. when the
House and Senate revenue bill confer
ees meet tomorrow for their first ses-
sion the real battle over the great tax
raising measure will begin. In general
there were no hard contests in the
" avs and Means Committee, in the
House, IN the Senate finance committee
or in the Senate
Chairman Claude Kitchin, of the
ways anG Means Committee, intends to
put up persistent battle for a bill
that viii conform in its main outlines
TO the house bill. This attitude in
wolves defiance of the administration
TAXATION programme, as reflected in the
senate provision for one rate of excess
profits and income taxation for 1919
and another for 1920 to which the Re
puollcatlons, after much clustering.
offered only mild resistance in the
Senate
In effect, Mr.. Kitchin is taking the
Senate Republican position. but for
quite different reason. He wants A
heavy taxation policy until the war ex-
pendltures are cleaned up, it being his
theory that there should be no further
bond issues after the current fiscal
wear Hence he not only opposes the
Finance Committee programme to re-
duce taxation to $4,000, 100000 payable
IN 1920, but he is in favor of "iacking
up the 0,000,00l payable in 1919
to the amount of the House bill, viz,
$S,OO0,000 900, or even higher, and leav-
ing 1t there until the financial require
ments of the nation are fully met with
out recourse to more bond issues
kitchin Idea Called Radical
In other words, Kitchin is described
by one of the conferrees as being as
rank" in his revenue ideas as La Fol
lette. In fact his programme is much
the same as La Follette's.
Mr.. kitchin is much impressed with
the ideas Of the modern school of
economists. which favors paying war
debts as they are incurred as far as
that is possible. He thinks enough
bonds already have been issued. or
will be when the fifth loan is placed
in the spring, and the remainder of
the war bill should be paid by current
taxation
To put his programme into effect
he VIII vigorously oppose the Finance
Committees reduction of excess profits
for 1918 income from the 35-50-70-per-
cent basis to 80 and so per cent. and
viii insist on their permanent reten-
tion at his rates. He will also oppose
reductions in the House normal in
come taxes and virtually all, if not
all, of the Finance Committees special.
excise and luxury tax elimnations or
reductions
He will insist stubbornly on the
House plan Of estate taxes at very high
rates. as against the Senate substitute
of tax on individual inheritance at
much lower rates. He will also op-
pose in generals the so-called relief
or cushion" measures which the Sen
ate SO literally injected into the bill
to equalize taxation and avoid injus-
tice.
Postage Reduction Opposed
Mr.. kitchin will also oppose to the
last ditch the Senate plan for virtually
doing away with the second class pos
tai zone rates and probably will oppose
the reduction of letter postage from
three to two cents.
On the other hand Chairman Sim
mons and an overwhelming majority of
the Finance Committee are firmly op-
posed to any plan to raise more than
$4,000, 900 900 in the current fiscal year.
as they believe even that amount will
be represslve to business activity and
destructive of prosperity.
Both Mr.. Simmons and Senator Pen
rose. the ranking Republican member
of the committee, are eager for early
passage of the revenue bill, but they
VIII put up a united front against any
heavier taxation than the Senate form
of the bill contemplates. So, the out
look is not considered good for an early
agreement. In the meantime the com
missioner Of Internal Revenue is in
desperate position, with tax collecting
time approaching and no decision in
sight as 10 the taxation programme
Altogether the Senate made 602
changes in the House bill. To avoid
losing time over inconsequential mat
ters the House conferrees are expected
TO submit at the outset a list Of the
Senate amendments which they are
willing to accept, either because they
concur IN them or because they are not
worth fighting about