OCR Text |
Show W TAX DILL WilJilGES Sugar, Coffee, Tea and Cocoa to Raise $80,000,000 War Munitions Dropped. WASHINGTON, May 31. The sen-ato sen-ato finance committee today decided to provide In tho war tax bill to ralso SSO.OOO.OOO by consumption taxes of 2 cents a pound on coffee. 5 cents on tea, cent on sugar and 3 cents on cocoa. Another important change agreed upon was the elimination of tho present pres-ent tax of 12 per cent on war munitions, muni-tions, now raising 25,000,000. Substitutes for tea and coffee will also bo taxed. From the new taxes tho committee estimates the following revenue will bo raised: Sugar, $50,000,000; coffee. $18,000,-000; $18,000,-000; tea, $3,000,000 and cocoa, ?7,000,-000 ?7,000,-000 Coffee and tea taxes will bo levied lev-ied upon imports Arrangements aro being made to take care of import contracts con-tracts made before May 1, by requiring requir-ing purchasers from importers instead of the latter to pay the taxes. Undor tho house bill it was proposed to tax coffeo 1 cent a pound and tea 2 cents. The decision to abolish the present special tax of 12J per cent on war munitions was said to be duo to two reasons diminishing of the tax and imposition of increased excess profits on all corporations, which will reach the munitions makers. While this year's revenue from the munitions tax was estimated to yield $25,000,000, treasury exports told tho committeo it would be much smaller next year. Another provision adopted today by tho committeo would exempt from taxation reclaimed by refining beer and reducing Its alcohol content In the making of "near beer," when such alcohol al-cohol becomes denatured for commercial commer-cial purposes. The committee did not discuss the proposed postal increase on second class publications. |