Jasper County Democrat, Volume 21, Number 60, Rensselaer, Jasper County, 26 October 1918 — SENATORS SLASH TAX ON SPIRITS [ARTICLE]

SENATORS SLASH TAX ON SPIRITS

Radical Change Made by Committee in Provisions of New Revenue Bill. PROHIBITION AGAIN HUNG UF House and Senate Conferees on Emergency Appropriation Bill With Its Amendments for National War Time Measure Fail to Agree. Washington. Oct. 25.—1 n lieu of the taxes on estates proposed In the house war revenue bill, the senate finance committee in its revision adopted a plan of taxing inheritances of SIO,OOO and more, at rates to be fixed later. The committee also decided to reduce to $2.20 per gallon the tax on distilled spirits u<ed for induefftal, medicinal and other nonbeverage purposes. The new tax proposes that inheritances received by heirs, Instead of estates left by deceased persons, shall be the subjects of federal taxation, after state inheritance taxes are imposed. Changes Insurance Tax. The revenue of the government probably would be half of the $110,000,000 levy on estates proposed in the house bill. Returns from life insurance policies under $25,000 would not be taxed under the committee’s plan. Reduction of the rate-on non-bever-age distilled spirits and alcohol ordered by the committee was said to be In response to interests urging it in order to stimulate production of spirits needed for munitions and also to reduce the cost of medicines. The house had fixed the tax at $4.49 per gallon. Recently the senate committee reduced that to $3.20 and tofiay to $2220 per gallon, which is the rate under present law. House and senate conferees on the emergency agricultural appropriation bill with its, amendments for national war-time prohibition,“fatted to break their deadlock in the rent profiteering section and decided to report a disagreement. The military deficiency bill, carrying $6,345,523,688. only a slight decrease from the original house draft, was reported to the senate today by the appropriations committee. Anticipating speedy passage of the bill by the senate. tjie house interrupted its threeday recess program find adjourned until tomorrow so that no delay might result in sending the measure to conference. New Emergency Power Bill. A substitute for the administration errfbrgency power bill, passed by the house to meeta shortage of steam power in war activities, was agreed to today by the senate commerce committee. Instead of forming a separate corporation, with authority to lend funds to private enterprises to increase power activity, the substitute, which representatives of the war industries board have been asked to aid In drafting. w<li authorize the war finance corporation to lend funds for that purpose up to $50,000,000.