Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-08
EEDING OF WAR
TAXATION BILL
Kitchin Calls Ways and
Means Committee to
Final Tussle
TO RAISE $1,S00,000,000
Sharp Divergence on Excess
Profits Levy-Liquor Heavily
Assessed in Proposed
ss Measure
TO RAISE S1,sOO, 900, 900
WAsIIINGTnN. NAY

Insisting upon report to the House NOT
{. later than tomorrow and possibly late to-
day. Chairman kitchin. of the Ways and
Means Committee. called the committee
together today for q final tussle with the
war taxation bin. Chairman Kitchn told
the committee that a speeding up of its
work is imperative unless the adjournment
of Congress is to be much delayed It Is
realized there will be lengthy debate in
both the Senate and House over the tax
bill. which will levy direct taxes amounting
TO nearly So 600. .OOo.0 600.
The bill scheduled for report last
week, but committee wrangles have delayed
action. Several schedules have been re-
written and the committee has overturned
from day TO day It's tentative agreements.
The fact that the bill as it stands today is
estimated To produce only about $500
900 900 instead Of the $500 .0oo,00 wanted
by the Treasury Department is the principal
cause Of the constant readjustment Of rates.
TAN oN EXCEss PROFITS
After agreeing yesterday 20 an excess
profits tax of IA per cent the committee re-
versed itself and today has voted to rec
ommend an excess profits tax Of l6 per
cent This item will cause a hard ;ght
in both bodies, as criticism is generally
made that the excess profits tax as now
levied Is not equitable, fayorng the over
capitalized concern and hitting hard the
prosperous business Of small capital
II is becoming more likely each day that
the Senate Finance Committee will rcwrite
the House bill The House committee has
held no hearings and protests are being
received from virtually every industry in
the country concerning the rates proposed
II is understood the Senate committee will
start hearings as soon as the House bill
is introduced and the measure may be COM
pletely rewritten in the upper chamber
1NHERITANCE TAX
The present inheritance tax had been
left unchanged until late yesterday. when,
In last effort to bring the estimated new
revenue ,Ip to the 81 100000 900, asked by
the Treasury Department, an amendment
was adopted in committee, lowering the ex-
emptons on the inheritance tax from S50.-
600 TO s25 900. The rates were left as
they were until interltances of 100000
upward were reached when "A new levy OF
/ fifteen per cent fiat was fixed The new
whisky tax Of ninety cents a gallon was
raised to Sl10, making total tax of
$2.10 while the new beer tax was raised
from 81 barrel to Sl.25. making total
tax on beer. II the Congress accepts the
committee report, of $2.75 a barrel
This tax. the committee believes will be
so heavy II will automatically restrict the
liquor business during the war and at the
game time ia sc large amount Of war
revenue
The bill in the form it now holds. but
virtually certain 20 undergo alteration be-
fore il Is ready for report to the House, car
ries the following items and estimated new
revenues. all of il exclusive Of the present
Federal taxes which must be added to the
listed estimates to show the total taN each
item will bear.
Income tax ,new revenue) sGl2,2lS,0O0.
With the present tax. this will make the
schedules run from to so per cent on in
comes and with a new basis rate on corpOr-
Z ations OF per cent instead of p
Excess profit tax as yet undetermined
Distilled spirits CaddltionaD, $203,OO 900.
Rectihed spirits $7,50O,oOO.
Fermented liquors. $4,000. 900
Wines $4,000 900.
Soft drinks and syrups, 100000, 900,
Cigars. $llOO0.0o0
Cigarettes. S@5,00O,0o0.
Tobacco. $40. 100000.
i Snuff. SO 600. 900.
Cigarette papers and holders, $750,000
Advertising. per cent Of gross news.
papers and publications exempted),
$4,000 900.
Insurance policies, S5,OOOOOO.
Transportation freight, per cent, s77,-
100000.
Express 10 per cent $4,000, 900.
Passenger. 10 per cent. s75OO0.O00
Pipe lines, = per cent, 81 500 900
Electric light and gas, domestic use, 5
per cent of gross bills, 100000 900.
Telephone and telegraph 6 cents)
$1,000 900.
Automobiles g per cent of gross sales).
Musical instruments (5 per cent?,
$T.000,000.
Motion pictures q cent fooO, $1,000, 900.
Jewelry (5 per cent? s7,500,000.
Pleasure boats 100000.
Perfumes and cosmetics (5 per cent?.
34,750,00O.
Proprietary medicines Ss,50000
Chewing gum. $l.OO0O0O.
Admission tickets Il cent on ten),
S75000,000.
Club dues Go per cent of total pald)
315.000,0O0.
Playing cards. cents a pack and other
items. s33,000,OO0
First-class mail increases, 10000, 900
Second d-cass mail sl9,000000.
These last two items and the proposed
gasoline tax OF one cent a gallon, like
that on excess profits, have not been def
nitely agreed TO. Two postal commit
tees will work with the Ways and Means
factorlly.