The Washington times., 1916-07-01

Income, inheritance. and munitions
taxes are to pay the cost of prepared
ness. II there is war. the cost will
be paid by bond issues.
Shifting the burdens almost entirely
on accumulated wealth and big in
comes. the new Administration revenue
bill to be introduced In the House today
Is epoch-making In the opinion OF Ad-
ministration leaders. II will establish
a national Inheritance tax as a perma-
net part Of the fiscal system Of this
country. With both income and inner
itance tax laws. 1t 10 pointed out. the
United States will have taken a long
step toward lifting tax burdens from
only in case of war, House Leader
Kitchin said today.
Experts say the new bill will raise
approximately $21Q0O0.0oo Of additional
revenue.
sIOO,OOOy 400 from Incomes.
s6O.ODO,OOO from inheritances.
s5O,OOO.OOO from munitions.
Income Tx Boosted.
The present normal income tax rate
Is boosted at one fell swoop from
e per- cent. The supertaxes
W. begin at $4,000 and will in
crease at the rate OF per cent on
each classification. until 10 per cen,
is levied on all incomes in excess OF
$500, 900. ....
The Inheritance tax provisions viii
exempt all estates under $4,000 II
the testator was resident of the
State. II n nonresident, there VIII
be no exemptions. The tax rates are
per cent Cor estates under $4,000
nd AZ haf mn
and $4,000; 3 per cent between $780,.
600 and $250.000; I per cent between
$260.000 and $45O.000. and s per cent
on estates in excess Of $4,000 The
with the purely State Inheritance tas
laws now on the statute books.
Varied Rates of Tax.
Varying rates Of taxation are imposed
on munition factories. II receipts Of q
plant manufacturing gun powder and
explosives do not exceed a million dol
lars. tax of per cent is laid. Eight
per cent is demanded where receipts ars
In excess of that sum. A sliding scale OF
rates Is also provided for cartridges and
other munitions OF war.
The stamp taxes. which politicians
fear. are wiped out, although part Of the
emergency revenue act created at the
stand In modified form.
There will be no more stamps on tele-
grams. MORTGAGES. telephone calls. per
| fumes, and deeds.
Some of the special taxes remaining
| are 81 a thousand on the capital stock
| OF bankers, $50 on brokers. $50 on pawn
brokers. a graded tax on theaters. be-
| ginning as low as $40 80 as to catch the
smaller moving picture shows; 800 or
| circuses. and q tax on bowling alley,
and billiard tables. There Is also q wine
| stamp tax. The rate Of e1.O a barre
on beer unchanged.
Legislative Proposals.
There are three legislative proposnii
| which are more or less direct conces
sions by the Democratic party to Il,
hated principle OF protection. They are
Creation of O tariff commission q
framed by Congressman Rainey o
An Increase in the tariff rates Of
dyestuffs to protect the infant indus
| tries which have sprung up since tn
| European war cut OF the dye suppl!
Of the United States.
An unfair competition clause whicl
Is expected to keep foreigners from
dumping goods in this country a
prices lower than they command II
foreign markets.
Reduce After Five Years.
The dyestuffs tariff clause contain
a provision that the duties at the On,
Of a period of five years shall be 70
duced at the rate Of % per cent year
on tho theory that once the industr!