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Show oo WAR TAX DEBATE IN FIE SWING Hope of Early Passage of Bill Lost When La Follette Assails Cloture. UNDERWOOD'S SPEECH Senator for Taxation of Wealth Rather Than People Attacks Monev Slackers. WASHINGTON. Aug. 30. The long expected senate debate on war profits features of tho war tax bhl was finally final-ly in full swing today following disposal dis-posal of the publishers' tax provisions yesterday. Factions favoring even higher levies on war profits than the compromlso advanced of tho finance committee wero preparing to support a flat rate of nt least 50 per oenL When debate opened. Senator Underwood was ready to speak in favor of Senator Sena-tor Bankhoad's substitute providing for a tax of 75 per cent on profits based on capitalization of -0 per cent and over. Pending today was a petition for cloture, signed by fifty-six senators in an effort to limit debate and hasten passage of tho bill. Before Senator Underwood began his address Senator Simmons failed to secure unanimous consent for a final vole next Monday. Senator LaFollettc objected, assailing the cloture movement move-ment and declaring he would object to any effort to close debate until the Avar profits and income section were disposed of. Cloture Move Lost In view of Senator LaFoIletto's attitude, at-titude, senate loaders behind tho cloture clo-ture movement lost hope of early pas-sago pas-sago without resort to tho cloture rule but Senator Simmons plans to mako another attempt to reach an unanimous, unani-mous, agreement and avoid forcing the cloture movement. Taxation of Wealth Taxation of wealth rather than the peoplo by consumption taxes was advocated ad-vocated by Senator Underwood. "f havo no patlenco with the money slacker," ho said. "Tho man who wants special privilege and exemption exemp-tion from congress is entitled to contempt." con-tempt." Senator Underwood said ho supports sup-ports tho committee's plan to raiso ?2,500,000,OUO by taxation. "But I want that levy to bo equitable" equit-able" he continued. "A largo proportion propor-tion of this war burden must fall on the wealth of tho nation. And great woalth 1h ready to respond to a 'reasonable 'rea-sonable demand." Senator .Underwood urged a high tax on profits" which exceed 18 per cent. He assailed the committee provision declaration that a 300 per cent profit must be reached before a tax of 60 per cent could be levied. "Can you tell me what right an American citizen has got when his life 1b at stake and soldiers aro on tho firing lino to say that ho shall have 75 per cent of his profits and tho gov eminent 25 per cent?" demanded the Alabama senator. "There is no reason rea-son why he should withhold 75 per cent of his profit from the government govern-ment when he is making profits amounting" to 200 per cent. Borah Questions Accuracy Senator Borah questioned tho accuracy accu-racy of the estimated revenue from the committee bill. "An expert tells me," ho said, "that It will not raise one billion dollars from war profits by any manner of means." "I think that is correct," Senator Underwood replied. Senator Weeks-said he was advised by experts that tho original war profits prof-its section designed to raise $562,000.-000 $562,000.-000 before the increase of yesterday, actually would raise one or two hundred hun-dred millions more. Senator Underwood assailed tho bill as a "very hazy proposition. "If this bill is not in tho twilight zone and full of dark places then I never saw a bill reported to congress that was in that category," he declared. de-clared. "It would take a Philadelphia lawyer to extract its intricacies. I am not objecting to the proposal that certain cer-tain wealth should bo exempted and certain burdens should fall on war profits but you Bhould make It clear so that all can see it. There must be no favoritism in it." The graduated war profits rates, Senator Underwood characterized as unjust to corporations and their thousands thou-sands of stockholders although just in tho individual income tax provisions. "Not even an invasion of the United Unit-ed States would result in any more harm to tho people than the overthrow over-throw of tho present prosperity," he added, urging adoption of the Bank-head Bank-head amendment. |