The review. [volume] (High Point, N.C.) 1908-19??, 1917-05-03
HOUSE COMMITTEE PREPARES
WAR BILL TO RAISE BILLION.
AND HALF DOLLARS.
LOWER INCOME EXEMPTION
Increase Of Excess Profits Tax is An
other Proposal Of subcommittee
Increase Taxes on Liquor, Beer, To-
baccos, Soft Drinks, Freight and Pas
senoer Traffic, etc.


Washington.-A war revenue meas
ure designed to raise not less than
$1,000, 100000 by direct taxes during
the coming year was reported to the
House Ways and Means Committee
Tuesday by q subcommittee which
had been drafting the bill in secret
sessions.
Reduction of the income tax exemp-
tions from $4,000 and $4,000 to $1,000
and $4,000 for single and married per-
sons, respectively, and an increase Of
the excess profits tax from eight per
1 cent on all amounts over eight per
cent and $1,000 to sixteen per cent
are two Of the subcommittee pro-
posals.
The tentative bill also carries in
! creased taxes on liquor. beer, cigars,
cigarettes and tobacco, new taxes on
automobiles, soft drinks, ammunition
places, freight and passenger tariffc
and stamp tax of wide scope. Much
! of the bill follows the lines suggested
by Secretary McAdoo, but many of
the most important proposals are re-
jected.
The total Of the proposed bill falls
millions of dollars short of the orig
inal figure Of $1,000, 600, 900 to be de-
rived from taxes this year.
Fordney Responsible.
Opposition OF Representative Ford
ney. of Michigan, ranking Republican
member Of the committee, to raising
more than $1,O0O,O 100000 by direct
taxes is largely responsible for this
situation.
A bitter fight on the bill in full
committee is certain. Resentment
among some members aroused by the
prolonged executive meetings of the
committee, coupled with vigorous op-
position to the income and excess
profits tax proposals, make storms in
evitable.
A new cloud also has appeared in
the threat of Republican member to
demand doubling of the present one
cent duty on sugar.
Secrecy, which has marked sub-com-
mittee conferences, will rule in the
full committee. Unprecedented safe
CARDS are being established against
leaks" Only one copy of the tenta-
tive bill for each committeeman has
been printed, and an effort will be
made to prevent members taking them
from the committee room.
There have been insistent demands
from all sections of the country for
public hearings but none will be held
if present plans are carried out
A normal tax of two per cent would
be levied by the proposed bill on all
incomes above the proposed exemp-
tons. Above $4,000 and $4,000 and
up to $4,000 four per cent would be
levied. Surfaces would begin at $5,-
900 and continue upward.
Higher Liquor Tax.
Decision to recommend increasing |
the tax on whiskey from $1.1O to 81 |
a gallon and that on beer from $3.50 |
to $3.50 barrel was reached after |
determined efforts to make it higher |
had failed.
In an effort to protect the manu-
it was decided to fix graduated tax
on all kinds Of cigars. Cigarette
taxes would be doubled.
Suggestion of q fat four per cent
rate on freight and passenger trans
portation proceeds was rejected in
favor of taxes higher than four per
cent on passenger tickets and four
per cent on freight charges.
A FIVE per cent tax on the factory
cost of automobiles and musical in
struments is recommended.
Amusement places, Including mo-
ton picture houses and baseball parks
would pay stamp taxes equal to ten