Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-07-13
new FEDERAL TAX
BILL TO HIT Big
INCOMES HEAVILY
Outline of Kitchin's Legislation
Shows Democrats Need Huge
Revenue for Government
MUNITIONS INDUSTRY
TO HELP PAY EXPENSES
Administrations Tariff Roard
Idea Incorporated in
Measure

TeIearaphic despatehss>from Wash
inaton say that the revenue measures
Of the administration are to be put
throuah ahead Of virtually all other
LEGISLATION, and that the Republicans,
while opposing some features, will
not carry on q "flllbusteE" The fol-
lowing Washington corNespondence
Summarizes the proposed revenue leg
isIation:
WASHINGTON, d. c.. July l, -
The general Democratic tax bill de-
signed to raise revenue, I'LL the de-
pleted treasury, and pay for prepared
ness, was presented to Congress to-
day.
The bill, as introduced In the House
by Majority Leader Claude Kitchin,
chairman Of the ways and means COM
mittee, is expected to raise $3.50, ,00o,-
900 OF annual income for the govern
ment. Its provisions are: III.
IA revision Of the present income
tax, doubling the rate on all incomes
from $4,000 up, and imposing an addi-
tional surtax on incomes above S20,-
600. This provision Is expected TO
add $4,000, 900 to the revenues.
Munitions and Smokers Taxed.
IA tax on munitions of war, inn
posing graduated excise on the
gross receipts of manufacturers OF
gun powder and other explosives, am
munition and firearms, and smelters
and refiners Of copper. This tax Is
expected to raise s50,000, 600.
te.f. 49,
600, graduated from per cent on the
first $4,000 to per cent on any
amount above $4,000. This provis-
ion 10 expected TO add 50,000,0o0 to
the federal inconle.
"A reenacfment 0e q portion Of
the present war revenue act, continu.
ing taxes on beers. wines and liquors,
bankers and brokers, theaters, NOV
ing picture shows and other anuse-
ment places and manufacturers OF to-
bacco The stamp tax section or the
war revenue act would be repealed by
the new BILL This provision, il is es-
timated, will raise $40.090,000
Tariff Board to De Crested,
THE administration proviso Gre.
ating a tariff commission or six mem
bers to take the tariff out CT poll.
tics,
GA provision imposing protective
duties on products thet would com.
pete with the infant dye industry
in this country. The president would
be authorized TO eliminate the duties
at the end Of five years e the infant
industry is not producing 80 per cent
OF the domestic consumption of dyes.
7-An anti-dumpinR law prohibit.
ing the under-selling OF, American
manufacturers under the actual mar.
let price. by foreign competitors and
making such under-selling unfair
competition" punishable as misde
meahor.
None Of Money For Mexican Crisis.
None Of the money 10 he raised by
the new bill is 70 be used In meeting
expenditures due TO the Mexican cri-
sis. 81,
An issue of bonds, to be authorized
hereafter, viii take care of these ap-
preparations, which so far amount to
more than $50 100000.
or the $3.50, 900, 900 estimated to be
raised by the revenue bill, s3l0.0G0.-
600 is additional revenue, $40 0e0, 900
already being available under the Ere
sent war revenue act. " ~ I'll
The new income tax section in.
creases the basic rate on all incomes
from per cent under the present Law
TO 2 per cent. II retains, however,
the exemption CT $4,000 year in
comes for single persons and $4,000
year for married persons.
The sur-tax rates are largely in.
creased by a system of reclassifica
tions which lower the amount upon
which the various percentages of sur
tax must be paid