The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-08-04
'INTOLERABLE
INEQUALITIES"
In WAR TAX BILL
Chairman Kitchin Criticise
Changes Made by Sen
ate Committee
LIFTS BURDEN FROM
RICH HE CLAIMS
Points Out That Many Cor
porations Will Be Ex-
empt From Taxation

Washington, Aug. 4.-Chairman
Kitchin Of the house ways and
means committee declared in a
statement last night that 'Intoler-
able inequalities" in favor of the
more prosperous have been written
into the war tax bill by the senate
finance committee.
In rewriting the ways and means
committees measure, said Mr.. Kitch
in, the senators have taken an enor-
nous load OF taxation from the big
business concerns and placed IL upon
the farmer, the business man and
others having modest incomes: have
stricken out by wholesale the house
proposals for taxes upon Injuries
substituting levies upon necessities;
have eliminated income tax sched-
ules that would have taken needed
millions from the incomes OF the
rich; and have added a grossly in
equitable excess profits section which
Is impossible of administration.
The statement of the house leader
Generally was accepted as q warn
ing that should the finance commit
tee amendments prevail in the sem
ate they will encounter a stubborn
resistance once the measure gets to
conference.
The house bill championed by Mr..
Kitchin was drawn at bipartisan
conferences of representatives. was
supported during debate by both
Democratic and Republican leaders
and passed the house by virtually a
Unanimous vote.
kitehin's Criticisms.
Among Mr.. Kitchin's criticisms
are that the finance committee
struck out the Lenroot amendment
increasing surtaxes on incomes of
$40, 900 to 100000. thus relieving
large incomes of taxation totaling
100000 annually; repealed the
naunition manufacturers tax. re-
lieving munition makers of more
than $25, 100000 a year. exempted all
corporations from taxation for divi-
dends received from other corpora
tons, relieving the big corporations
of more than 100000 900 taxes a year
and eliminated the additional house
tax on the transfer OF estates, re-
lieving big estates and inheritances
of $6,000000 the first year and $685.
900, 900 or more yearly thereafter.
The finance committee struck out
entirely, said Mr.. Kitchin, many mill
lions of dollars of taxes, which the
house had imposed on the manufac-
ture and sale OF automobiles, tires.
cigars, musical instruments and
numerous other Injuries, and shit
ed over 800, 900, 900 to the owners Ct
automobiles and to necessities. like
sugar, coffee, tea and cocoa.
The finance committee reduced
taxes on cigarets, chewing and
smoking tobacco and snuff about
$4,000, 900 he pointed out, and put
that amount on coffee, tea and cocoa.
The senate plan to tax war excess.
profits on the basis of increase shown
in any corporations profits over the
average for a pre-war period of
three years-1911. 1912 and 1913-is
declared by Mr.. Kitchin as making
an undue discrimination in favor of
the fortunate persons or corpora
lions who were highly prosperous
during the pre-war period. On that
basis, he said, a corporation of 49,
600, 900 capital making $1,500,000 dur
ing the pre-war years and the same
now would pay no excess profits TAX,
while a farmer worth $4,000 max
ing 1920 during pre-war years and
now making $4,000 will pay $500
taxes.
4''There are hundreds of corpora
lions whose annual profits each year
reach into the hundreds of thousands
and millions" said Mr.. Kitchin.
that will pay not cent of excess
profits tax under the finance COM
mittee's amendments, because being
highly prosperous during the rre-
war years they are making the same
profits now and therefore have no
axeaas