The Story of the Great War, Volume 6: History of the European War from Official Sources
History
The Story of the Great War, Volume 6: History of the European War from Official Sources
World War, 1914-1918
The War Revenue Bill was less easily disposed of. It bristled with
contentious points bearing upon the most equitable ways and means of
raising supplementary imposts to meet the first year's war outlays. As
submitted to the House it was designed to raise a revenue of
$1,800,000,000; but the barometer of the Treasury's needs kept rising
and presently stood at $2,250,000,000 as the amount needed to be
raised by the bill. The House hurriedly passed a loosely constructed
measure, taxing practically every industry and individual, especially
the incomes of corporations and men of wealth. It raised all tariff
duties and abolished the free list by making the exempted articles
subject to a duty of 10 per cent. The House accepted it as a war
measure, full of inequalities that would never be tolerated in times
of peace. It threw upon the Senate the onus of repairing the defects
of the bill. It passed it largely as it stood, a hasty piece of
patchwork, in order to get some kind of legislation before Congress to
meet the Treasury's requirements. The measure was discussed in a cloud
of confusion, and so perplexed the members that, in disposing of it,
they relied upon the Senate to return it in better shape for
adjustment in conference. The Senate was inclined to confine the
measure's revenue scope to $1,250,000,000, leaving the balance needed
by the Government to be raised by authorized bond issues. But in
redrafting the bill the Senate committee, after vainly succeeding in
paring the imposts below $1,670,000,000, was eventually obliged to
raise them $500,000,000. The conferees' report further enhanced them
to yield approximately $2,500,000,000. In this shape the bill finally
passed the Senate October 2, 1917.
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