The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-09
EXTENSION OF WAR
TAX TO Be RUSHED
kitchin Says Effort Will BE
Made Before January I to
Continue Act.
WILSON PLAN OPPOSED

WASHINGTON. Dec. s.-Following a
conference at the Treasury Department
to-day between Secretary McAdoo and
Representative Kitchin. Democratic
leader Of the House. announcement was
made by Mr.. kitchin that an effort
would be made to pass before the holt
days a resolution extending the life OF
the wal revenue emergency act. which
under present authority will expire by
limitation on December 81.
The Secretary informed Mr.. Kitchin
hat It was highly desirable that ar ex-
tension resolution should be passed in
order that revenues from this source
might continue without interruption.
Democratic leaders appear to be conf
dent that the Republicans will interpose
no objection.
The proposal Will he considered by the
Committee on Ways and Means early
next week. Consideration also will be
given to the recommendation Of the Ad-
ministration that the present rate of one
cent a pound on sugar be continued in
definitely. Under existing Law sugar will
go on the free list IN May I. It IL the
desire OF the President that the duty Of
$50. 900. 900 shall he maintained as a
means of bolstering up the Federal
Treasury. II there is objection the ex-
tension resolution will apply only to the
wal act and action on uga will be de-
ferred.
WIN Draft New Tax BiiI.
Later IN the session the Ways and
Means Committee will draft a new tax
Ing bill to raise funds for the defence
programme.
While Democratic members are not
talking out loud on the subject In view
OF the general desire TO preserve har-
mony. 1t Is known that the Presidents
AVIATION plan has aroused bitter opposi-
ton. Most Of the leaders are opposed to
a tax on gasolene. automobiles and bank
checks and there liz a disposition to
c~rit!cise the recommendation to tax pig
iron and fabricated iron and steel prod
ucts. Many such products were placed
OH the free list by the Democrats on the
theory that prices would i" regulated by
foreign competition. Under normal con-
ditions, the argument is made. iron and
steel would feel such competition which
will De restored with the close OF the war
in Europe. Some Democratic leaders
think the iron and steel industry should
not be taxed.
There is one feature of the Presidents
taxing plan that is generally approved
ny the Democrats. This is the recon-
! mendations that The exemptions OF the
| income tax law should be reduced and
the surfaces increased.
Income Levy 70 BE Heavier.
II is virtually certain that when Con-
gress comes 10 legislate. the exemptions
Of the income tax will be \educed from
$4,000 to $4,000 for single men and
from $4,000 to 49, 900 in the cas- Of
married men. The President suggested
that the surtax should begin at $40. 900
a year instead of $50. 900. as ut present
There seems to be sentimeI0 favorable
to the surtax running az high az 10 per
cent. on Incomes in excess OF VI 1000. 900.
Owing to the delay of Minority Leader
Mann In preparing the Republican COM
mittee lists the House probably will bs
unable to do much business before tho
HOLIDAYS. Unless there Ia a change OF
programme Congress will adjourn ON
December 20 for the holiday period.
Committee organization will be per-
fected next week. Less h seven leg
! islative days will then remain before he
. recess. House leaders look for little
action In tina time aside from the pas
SAGE Of the resolution extending tho war
act.
No work will be lone by the Naval
and Military committees oil national de-
| fence until the first week In January.
The general expectation IL that the de-
fence bills will be reported late in Feb
I ruary. Until they are disposed of the
Committee OH Ways and Means will be
unable to determine just q much
money will he needed to nance the
army and navy In accordance with the
plan of expansion recommended by the
President.