Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-10-04
GONFEREES ARE
FINALLY AGREED
ON WARTAX BILL
Will Raise $2,7OO,000,-
000-Is Promptly Reported to
House-Stamp Taxes Retain.
ed-Excess Profits Tax Raised
from 20 to 60 per Cent. in Re.
vised Bill-Large Increase in
Postage Rates on Second
Class Publications.

Washington, Sept. 30.-Tiie joint con-
ferees on the war revenue bill conn leted
their draft late Saturday after two weeks
of elaboration. Immediately after the
bill was approved Chairman Kitchin of
the House ways and means committee
hurried to the House, where it was for
mally offered.
AS revised by the conferees. the meas
ure has been raised from the levy fixed
by the Senate of 81, AIS. SO. 600 to an aggre-
gate of approximately 81, 700.0oO ,00o. Chair
man NJ of the Senate f1nanca COM
mittee estimated to night tiia- the in
crease made by the conferees would be
about sz75, 900. eco.
Ih war revenue bill has been before
Congress for nearly four months. AS re-
drafted by the concerees, Chairman sim
Tcns says. it has been Immensely I'M
proved, and he believes that there will
lie no obstacles to it's speedy approval
bv Congress mex. week.
nh chief changes made in the hill by
Tic conferees vera in the cXc3ss war
profits, income tar liquor taxes. taxes on
tobacco and cigars. insurance. war stamp
taxes, inheritance taxes, postal rates and
transportation. 90 - 4
The income rates, as agreed upon are
substantially the same as passed by the
House with the Gerry amendments, as
IdssSo W III DSliISs ~ Ot'
to the Senate amendment increasing the
normal take on corporations from four to
six per cent. The bill abolishes "collec-
ton at the source and substitutes infor-
nation as provided in the Senate amend
ments except as to what is known as
tax free covenant bonds Of corpora
tons"
The excess profits tax as agreed to is
a modification of the Senate bill, the prln-
a;o,l r baipp tn fha n, ayiponyo and
minimum rates of exemption upon Which
the tax is to. be determined. The Senate
graduated scale of exemptions ran from
six TO ten per cent, while the House
exemption rate was eight per cent. The
conferees adopted the graduated rate of
seven to nine per cent.
DEFINITION OF CAPITAL.
The definition Of capital, which was a
point upon which the conferees argued
for days, was modified so as to provide
that the actual value of tangible prop
erty paid in to a corporation or partner
ship or Individual pushes before Janu-
airy /. 1914. shall be taken as Of that date.
The provision as to goodwill and other
intangible property has been somewhat
liberaliZed.
The tax on liquor and beer is slightly
higher than it was as passed by the Sem
ate. A slight increase is made in the
tax on wines. while that upon beverages
other than beer and wines is a compro-
mise between the Senate and House DIS
The conferees made a slight increase
In the Senate rate on tobacco, snuff and
cigarettes.
The tax on Insurance., marine casualty
bond, and indemnity companies as nxeo
by the House is restored to the bill.
The excise taxes on manufactures are
retained in the bill with reduced rates
from the House schedules, making the
rate three per cent. instead OF hve pei
cent, except for cosmetics. perfumes anc
proprietary medicines, which bear the
same tax, two per cent, as originally
arranged by the House
A floor tax imposed upon these arti
rles was made to apply only to the whole
saler.
Slight changes were made in the take:
for theatre admissions and club dues. II
the tax on tickets one cent is imposed
for each ten cents or fraction OF tn
amount of admission. The tax on tickets
for children under II years of age mus
In no case be over one cent.
Permanent use of boxes or seats in
theatre or opera house is subject to
tax OF ten per cent. OF the price charged
DETAILS OF THE MEASURE.
The conference report provides that
r aduateQ TAX OIL IToHh " u " Ici ScHt
on excess profits of corporations. partner
ships and individuals shall be levied on
basis of invested capital as compare,
with invested capital of the three pre-
war years of 1911. 1912, 1913. This is
substitute for the Senate t~.es of 16 to q
,Nr cent, based upon ID similar compari
son of pre-war and present profits.
The graduated excess profits rates ar
20 per cent. of excess profits not In eX
cess OF 10 per cent. OF the invested car
ital for the taxsa.> "car. 20 per CEN
on sxc.s>. n. excess of Is per cent, an
not over 20 per cent. of such capital;
per cent. on excess over 20 and under
per cent. of capital; As per cent. on owe
Is per cent. and under 80 per cent. c
capital, and a maximum Of so per cen
on profits in excess of 3s per cent Of sue
capital. .
In calculating war excess profits, tn
term invested capital of corporation
and partnerships is declared to includ
.actual cash paid in, actual cash valu
of other tangible property paid for stoc
or shares, at the time of payment, {
january !, 1914. but ia no case to excee
g. mar value of the original securities