The Birmingham age-herald., 1917-08-04
war years and now making $6Ooo. W pay over s1s0O taxes.
 CORPORATIONS ESCAPE


 There are hundreds of corporations whose annual profits each reach into the hundreds of thousands and millions, said MT. Kitchin, that wilf pay not a cent of excess profits under the finance com mittees amendmtnts because, being high ly prosperous during the pre-war years, they are making the same profits now and therefore have no excess. Under the finance committee amendments as to excess profits and incomes, the United States Steel corporation, with billion and half capital, making $270,000,000 an nual profits, will pay not cent of tax either on incomes or on excess profits, while the little farmer worth less than $20,000, making a profit of s6000, will pay $2071''
 CITED AMENDMENTS
 MT. Kitchin cited Senate committee amendments which he said would im- pose excess profits taxes on farmers, mer- chants, butchers and blacksmiths, but would exempt lawyers. doctors and others, including employees and agents, receiving fixed amounts for their services. The classification "employes and agents" he said, would include "o7ricers of corpora tions like Gary of the United States Steel corporation, Schwab of the Bethlehem Steel corporation, Morgan of J P. Nor gan & Co.,, and DuPont of the Power company.
 UNWORKABLE TAX
 The excess profits tax Is entirely un- workable MT. Kitchin charges because it requires in ninety-nine cases out of a hundred a physical valuation of all the assets of each taxable individual partner ship or corporation,'' not only in the year when the taxes are collected, but for each of three years of the pre-war period. Such a stupendous task, 1t is declared. would take months to perform and as mapped out by the Senate amendments would lead to needless confusion.
 Many big business concerns which for years have been at the feet of Congress praying for favoritism at last have had their prayers granted by the finance com mttee the House leader declared
 The Senate provision exempting from income taxation all corporation dividends received from other corporations Nrepeat- edly has been sought, he says, by con- cerns like United States Steel, Bethlehem Steel, American Tobacco and the DuPonts United States Steel alone, he calculated, will benefit by the committees action in this respect to the extent of s1O,soooOO.
 RAILROADS FAVORED
 Relief prayed for since 1913 by the rail- roads was granted by the senators, MT. Kitchin declared, when they provided that the roads need not pay direct to the government a tax on the income from their bonds, which in the bonds them selves they have contracted with the pur- chasers to pay.
 A plea by the United Cigar Stores com pany for favoritism, denied by the ways and means committee, was granted by the Senate committee, MT. Kitchin charged, In adjusting exemptions under the tobacco tax. Under the Senate provision, he de- clares, tobacco dealer with a capital of 5000 to 5000 and barely making a liv- ing, will get exemption only on 100 pounds of tobacco, 800 cigars and 1000 cigarettes. while the United company. with $50 000, 900 capital, will have exemptions totalling 100000 pounds of tobacco, 50O,00o cigars and ,000, GOO cigarettes.