WWI TAX ON MOTOR VEHICLES

JFK+50:  Volume 7, No. 2404

SENATE ORDERS $40-$50 MILLION LEVY ON MOTOR VEHICLES

Washington, D.C. (JFK+50) One hundred years ago today, August 17, 1917, the Senate of the United States ordered a $40 to $50 million levy on motor vehicles.  The Senate measure, however, was considerably lower than the $68 million levy on manufacturers proposed by the House of Representatives.

The Senate also "accepted the finance committee action in striking out the house provision for additional taxes on inheritance."

A surtax of $10 for each $500 value on automobiles costing more than $3000 will be required by the Senate action.  This tax will be reduced by 10% for each year's use up to a 50% maximum.

JFK+50 NOTE

The War Revenue Act, signed by President Woodrow Wilson on October 3, 1917, is described as "the greatest War Revenue bill yet enacted."  It was designed to raise 2.5 billion dollars per year for the war effort.

SOURCES

"Rich Man's War?  Every Autoist Must Pay Tax," The Chicago Daily Tribune, August 18, 1917.

"The War Revenue Act of 1917," by Roy G. Blakey, The American Economic Review, 1917.

1921 Advertisement

SOME GET KILLED IN WAR, OTHERS MAKE A KILLING!

JFK+50:  Volume 7, No. 2396

45 GREAT CORPORATIONS TO PAY $240 MILLION IN WAR PROFITS TAX

Washington, D.C. (JFK+50) One hundred years ago today, August 10, 1917, statistics compiled by J.P. Morgan & Company were read on the floor of the United States Senate by Senator Furnifold M. Simmons*, chairman of the Finance Committee.

These statistics showed that "45 great corporations" would pay almost $240,000,000 in war profits taxes under the revised Senate Revenue Bill**.  A similar bill in the House of Representatives, however, would collect a mere $78,000,000 in taxes.

Statistics also included the following estimates of excess profits for the companies listed...

United States Steel Corp.     $207+ mil
Dupont Power Co.                   $   76+ mil
Beth Steel Corp                         $  53+ mil
Anaconda Copper Mining     $  39+ mil
Standard Oil Company           $  20+ mil


*Furnifold McLendel Simmons (1854-1940) was born in Pollocksville (located near New Bern in SE NC) & served as a member of the U.S. House of Representatives 1887-1889 & the United States Senate 1901-1931.  FMS was chairman of the Senate Finance Committee from 1913 to 1919.  He refused to endorse Al Smith for President of the United States in 1928.

**The War Revenue Act was signed by President Wilson on Oct 3, 1917.  It provided for an increase in federal income tax rates including a raise from 15 to 67% for incomes over $2 million.

Designed to raise $2.5 billion for war purposes which included $1 billion from war profits taxes.

SOURCES

"Full text of 'The War Revenue Act of 1917," www.archive.org/

"It'll Help A Bit," The Chicago Daily Tribune, August 11, 1917.

Senator Furnifold M. Simmons

(D-North Carolina)

Bain News Service (1920)

Library of Congress Photo