Omaha daily bee., 1916-01-29
KITCHIN WAGES "
OPEN WARFARE
ON PRESIDENT
North Carolina Leader Serves No.
tice Big Group of Democrats
Will Fight Wilson's In
dustry Tax Plan.
HAS SPEAKER CLARK's BACKING
Revenue Must Come from Surtaxes
and Levy on NUM-
tions.
DEMANDS STAMP TAX REPEAL
Iron a SAD correspondentl }

Ntrom a starr Correspondent
WASHINGTON, Jan. 2S.-(Spe-
cial Telegram. "A bitter struggle
between the Wilson administration
and the democratic leadersh ip in
congress over the manner of raising
revenue to give effect TO President
Wilson's national defense bill is fore
shadowed in a statement made PUBLIC
today by Representative Kitchin of
North Carolina, the democratic
leader, in his fight against the pres
ident's proposal that moneys for de-
fense shall be raised by stamp taxes
and imposts on gasoline, iron and
steel rpoducts and few other ar
ticles, Mr.. Kitchin will have at his
back Speaker Clark and other influ-
ential party leaders.
Unless the president yields, the
fight over revenues will be pro-
longed, with the probability that the
defense bills will be dragged down
to defeat in the melee.
The differences between the president
and considerable element Of the demo-
Gratis I'm the house, for whom Leader
ISitchin speaks, are clear and sharply de-
fined.
For Levy on Munitions.
In his statement, given out today. Mr..
Kitchin, speaking as the chairman of the
ways and means committee, which orig
mates revenue legislation. expressed the
opinion that funds for defense should be
raised by an increase in the eurtaxes OF
the income tax law an da levy on muni-
tions OF war.
lie declared without equlvaction that
the house would not re-enact the stamp
features of the war act, as specifically
recommended by the president. Mr..
kitchin declared further that the ex-
emption of tho income tax. now fixed at
1890 for married men and 5000 for sim
gle men, would not be lowered, as recon-
mended by President Wilson.
Leader ISitchins reply to the president,
formally given. out today by the chair
i1an, Of lte..asays and means seefnmittee
is follows:
las chairman Of tie ways and means
committee l am convinced that It is im-
possible to frame any revenue measure
and pass it through tho house that does
not place all appropriations for the In
crease of the army and the navy on the
income tax basis, and the exemption will
not be lowered
Repeal for stamp Taxes.
II am convinced that we cannot put
through any revenue bill without prae-
| tically repeating all the stamp taxes OF
the present emergency act. Undoubtedly
| "a -.
A good deal of significance is attached
TO the fact that this statement is in
harmony with a formal announcement on
the question Of revenues made public yes
terday by Speaker Clark In that an
nouncement Mr. Clark said he was op.
posed to stamp taxes of any kind, and
that he favored increases In the surtaxes
Of the income tax law and levy on
munitions as the best way OF obtaining
funds for defense.
Today Speaker Clark, Mr.. Kitchin and
other house leaders had long conference
| in which the revenue situation was dis
cussed at length. and an agreement
reached that a fight should be made for
revenue bill along the lines indicated
in Mr.. Kitchin's statement.
Tax 20 Hit Wealth.
1t may be stated upon authority that
Mr.. Kitchin has come to the conclusion
that the plan of taxing wealth" as out
lined in his statement, as against taxing
industry" as recommended by the presl-
| dent was reached as a result of ex-
pressions made to him by approximately
seventy-fiye democrats of the house. This
notice was to the effect that unless the
additional revenues needed for prepared
/ ness were gained through the medium of
the income tax, war munitions, and pos
sible an inheritance t1; they would fight
the national defense and the needed tax
ing bill tooth and nail.
With this notice before him, coupled
with inquiries made on his ow naccount,
Mr.. Kitchin decided that the administra-
ton revenue plan could not be put through
| fhn house