Show l ANS J TO ii iFT fJ l A IF Jr TAXES XE i rl 1 IN EO ED i and End of v War ar Taken taken Into Consideration 6 h Reducing of levies by hy Finance Committee Co Sate ate 1 Deo Effects 9 Effects transition from 1 of the nations nation's nr ar t to a peace basis hasis and of proton pro pro- ton ion jen legislation on the thc present fu re problems of tn taxation tion t are arc arcin arel l' l in tho the Senate finance comee corn corn- ee rc report d on tho the revised re wart war t e bill bI filed today loday by hy Chairman oss The report explains the I taken to revise the thc House billu billi bill i u to ni rase rie e by hy t taxation nc next t year car 1 instead of is u planned by the House before of the armistice aria and ti th thc ng I pent wt of prohibition legislation le sed taxes ill m a 1020 of PJ the reason for fi fixing ing them s and thc the manner in which ariU fill iu be raised also are e ex- ex ni wit mit distinct changes chances made by rente In the draft of or the ther theL L r noted Doted by y the thc committees committee's re- re I i 4 I or of tKo 6 pr p cen t t l oa os undistributed corporate cl toting a a. 21 1 per cent maximum u Id sales of ot mInes and oil JU fells veI elimination of or tho tax and municipal bon bonds s sub- sub of a a. single ringle war excess profI prof- prof I ii 11 for the alternative e plan exa cx- cx ia a o of Individuals and partnerships i. i nr execs excess profits t taxation and lioa i-lioa o of the tho taxes on beverages Col Co l' l ll I I l io O Tare Mode Made ae debate on the measure will willi i I tomorrow with a a. statement b by byr t r Simion A report ii Sit t plan to fix 1920 taxes in tho the t-Lz t r hit bill wilt will be filed tiled by Senator w t-w of ot Pennsylvania for the Hc- Hc of the finance committee irate rate I views s also will be bo pr presented Smoot of DC Utah and La Lae Itte e of ot Wisconsin Republicans part pan of oC S Senator J rt report ort Is devoted to the plan pan for or r lues in 1920 to The no has a right to know I oa J an l In what hat degree the bur bur- t taie can prudently bo ho o rethe re- re tw the tho report 53 says During this d cf t f reconstruction business par par- arl new business is entitled to the tho burden of ot an f r cent nt tax on war profits In Jn vf of pea Peace the tho existence of or an 80 Profits tar tax would be b an nn a souti so- so uti 9 for the perpetuation or con- con t. t ot which no sufficient reason rC coull couI bo be given f H flew Ho IT n Reduction In N Made Madeu r I u the report port estimates a a. r re ro- ro t f by it I U. U U II Per 1 Der er cent war Profits tax ot of the tho excess profits rateS re i lon from Crom i 1 12 to 8 S per TIer cent 6 raal rate on individual In In- f Ind litt V other f taxes A On o of oC about a V M will occur from mis- mis Q and shrinkage In InH Late Irate rn- rn nue nj D ln culline of or the tho Program 4 b H tie the committee thus titis bethe be- be Idear floal the thc report sta state stale te For Foro lear ear o 1919 It Jt Is planned Panned to I l MO OO r from In Income omo I tx taxes 9 s an and M something over overn t horn n other sources tot tor or lear Har 1920 It U Is ls planned to corne less than Profits taxes and n. n about out from rota other sources I 1 Uta s. s Taxes M ry the general wisdom om or of f such w e R tt i It Il i. i no Is i I imperative o that pro profits fils I It i e the tho year 1918 bo be hea I HUe Iu is 13 not JI only ull ble and In ln accordance Q od I duri pOlicy Tho The prom profit rt war tho the year car 1918 aro are in tet cl ot profits they are now In ln t I taxpayer they should heavily before lh they y have or r reinvested toward tot i r ii tie to ir In the tho 8 expenses of ot tho the large arco measure the they it t t I I equally ImPortant that i should be Je reduced n I which an and 1 to tib Into the past To Ii tax hue the war ar profits its h R a err Id ot or fiscal Ju Not n no ow ot to tax for Cor tho ho reduction re of tho l le x Would be equally In in- It 10 t fo the thc he tax lax fati that thal reductions dUo due dUo I th the government go now it n atu Instead 1 or of f with wILh war wal e On is expected nn to lo I etao taxes returns tl gre gretle greatly e I the tho House bill to on V iao I PLANS TO LIFT lOAD OF TAXES EXPLAINED Continued from Page Iago 1 during their first of ot operation op operation operation op- op and for or the tho 1919 fiscal year rear A At t the present time under changed conditions tho the report states i it is possible to count only upon I for 1919 1118 1915 and for 1919 1919 1 1920 from this source Analyzing in detail tile Uto committees committee's radical changes s Senator Simmons Simmons' re report report re- re port explained that tho the revised rc Individual individual indi Indi- vidual surtax rates graduated g upward 1 per cent on each 1000 over oyer are arc more equitable than tho the arbitrary graduations of oC tho House bill House ro I talon Retained The Tho bill bUI retains tho House provisions provi pro for income ta taxation or of salaries including those thos pO possibly of or the tho President Pres Pros ident and federal Judges legality lee of ot which tho the report stated Is left to the courts if It the question queston is raised Tho The report however howe says that tho ho House clause claue for tor taxation of or new newstate state and municipal bonds bends was as stricken strick strick- en out as It seemed unwise for tor strick-I strick Congress Congress Con Con- gress gross to attempt t to impose this tax upon tho the obligations of oC states and municipalities mur mu- mu mu mu- r as us long as the states state's are arc not free tree to tax in a similar manner obligations of ot the tho United States The plan o n of requiring affiliated corporations cor- cor orations i-orations to make consolidated Income tax returns the report states will wilt do much to pr prevent prent ent tax evasion e and the I I I I I new tax on life insurance companies companies' true Income from Investments in lieu Heu of oC war excess income capital stock and other taxes Is more moro equitable Excess Impost Simplified The war excess profits section the tho report states has been simplified and reduced The House alternative plan planor of or levying war ar and excess s profits at whichever er rate would yield tho the most revenue rc the lie committee found objectionable because Its constitutionality Is questioned and its administration troublesome troublesome trou trou- to taxpayers E Explaining exclusion of or Individuals and partnerships from war excess profits taxation applicable only to corporations corporations corporations cor cor- the report stated Individuals and partnerships pa pay the tho hoa heavy surtaxes upon all net In Income Income income In- In come while corporations are relieved relle from surtaxes upon the portion of oC their earnings h is not distributed This I inequality is more than compensated for b by the fact tact that the tho corporation is subject to tJ the l war excess profits tax The situation as between different forms of or business organization having Ing been brought into approximate balance bal It was as dl proper to relieve e the corporation from the tho G C per cent differential differential dif dif dif- Income tax provided pro IJ by the time House bill house HoriNe Proposal ne Regarding the tho tax on beverages tho the report says no nCi sound reason was found for the House proposal for doubling the h rate of ot O p per pel r gallon Sallon on non neil beverage erace al alcohol largely largel used for medicines med mcd- cInes leines and household necessities Exemption from bond and other costs I I on distilled liquor remaining In Ill ware warehouses houses r bone dry do prohibition becomes effective next Jul July the thc re report no- no port states ii il to prevent upon owners owner To prevent tho tIme total loss owing to prohibition of or vineyards developed c through man many years cart tile the report adds r regarding ard nl wine Inc it was provIded PIo that under tinder proper r regulations wines ma miD mav bo be produced arid and existing stocks ot ol wino may be u utilized utilised for tho tO making o of cra o spirits and nonalcoholic ic M |