The midland journal. (Rising Sun, Md.) 1885-1947, 1919-01-03
REVENUE Bill
PASSEDBY SENATE
Measure Designed to Raise So,
OOO, 0O0, 900 Goes Through.
sEMI-LUxURY TAX RETAINED
Amendments, Making Reed Law Ap-
pIicabIe to District Of Columbia and
Giving Bonus Of a Months Pay to
Discharged Soldiers Adopted.

washington. Without a record vote
the Senate passed the War Reven1 e
bill, reduced to raise about $4,000, COZ
900 in 1919 and $4,000, 900 900 in 1920,
as compared with the levy Of $780,
OO0, 900 proposed in the bill passed by
the House three months ago.
When the final vote was taken the
Senate had been in continuous session
for nearly Is hours.
The Revenue BILL which had been
before the Senate since December IL,
now goes to conference, with formal
meetings of the Senate and House man
ayers planned to begin January with
view to finish enactment of the
legislation next month. The Senate
conferees appointed were Senators
Simmons, Of North Carolina; Williams,
Of Mississippi, and. Smith, of Georgia
(Democrats), and Senators Penroses
Pennsylvania, and Lodge, Massachu-
sets (Republicans).
In disposing finally of controverted
sections, the Senate rejected, IS to g.,
the substitute bill Of Senator La Fol-
lette, of Wisconsin, which proposed
higher rates principally on war excess
profits and individual income surfaces.
Another vote on the second class
postage question also was taken and
the Senate sustained Al to %, its prev
ious action In favor Of the amend
ment, which would repeal the existing
zone rates on publications and substi-
tute rate of one cent pound within
$50 miles and IL cents a pound be
yond.
Several riders were added to the bill,
but no important changes in the
finance committees draft was made ex-
cept to the reinstatement of so-called
luxury taxes on number of articles
costing above fixed standards.
Among the riders adopted were pro
visions for one months pay bonus to
men discharged from the military es-
tablishment after signature Of the
armistice, extension of the Reed bone
dry" law to the District of Columbia,
and for 100 per cent taxes on political
campaign contributions in excess of
$500.
A charge made in the auto tax sec
tion provided for exemption of trucks,
tractors and trailers, reducing the
bilPs estimated revenue yield by about
$4,000, 900, but the reinsertion Of the
luxury tax clause will result.in an esti-
mated yield of $80,000,000.
The Senate, without objection, adopt
ed the committee amendment for taxa
ton of inheritances in lieu of the tax
on estates as provided in the House
bill.
The inheritance tax plan proposes a
graduated levy ranging from one per
cent on inheritances between $4,000
and $25, 900 to % per cent on those
over 81, 500. 900.
An important amendment adopted
by the Senate, members explained, ex-
empts from inheritance taxes life in
surance policies payable to benefic-
iaries, regardless of their amount. A
clause imposing taxes on life insur-
ance receipts in excess Of $4,000 was
c1lIuludtCU.
An amendment by Senator Jones, Of
New Mexico, permitting any tax payer
who is head Of a family to deduct from
his gross income the amount not ex-
ceeding $1,000 paid by him annually
as rent on his residence, also was re-
jected.
The Senate adopted an amendment
by Senator Jones, of Washington, pro-
viding that where railroad corpora
ton is in competition with a foreign
road, the tax of the American line
shall not exceed that of the foreign
line. The purpose of the amendment,
Senator Jones said, was to meet a
situation in the Northwest where a
Canadian line completes with an Amer