New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-01
War Revenue Bill
Ready To-day; Is
S3OO,OOO,OOO Short
Opposition of Fordney, of
Michigan, to Further Di-
rect Taxes Blamed

Washington, April 3O.-A war reve-
nue. measure designed to raise less
than 81 5OOOOO,OOO by direct taxes dur
ing the coming year will be reported
to the House Ways and Means Com
mittee tomorrow by a subcommittee
which has been drafting the bill in
secret sessions.
Reduction of the income tax eXemp-
tons 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 8 per cent
on all amounts over s per cent and
$1,000 to 16 per cent are two of the
subcommittee proposals.
Much of the bill follows the lines
suggested by Secretary McAdoo. but
many of the most important proposals
are rejected Included in these are all
tariffs and making the income and eX-
cess profits and consumption taxes re-
troactive. Hence the total of the pro
posed bill falls millions of dollars
short of the original figure OF $780,
100000 to be derived from taxes this
year.
Fordney Opposed Direct Tax
Opposition Of Representative Ford
ney. of Michigan. ranking Republican
member of the committee, 70 raising
more than ;1.0000OO,0O0 by direct taxes
is largely responsible for this situa-
ton. He doubts, it is understood, II
more than this amount will be needed,
and urges that any further sums shall
be raised by other methods than direct
taxation IL il should become necessary
Democratic Leader kitchin also OPP
posed consumption taxes.
A bitter fight on the bill in full COM
mittee is certain. Resentment among
some members, aroused by the pro-
longed executive meetings of the COM
mittee. coupled with vigorous opposi-
ton to the income and excess profits
taxes proposals, make storms newt
able.
A new cloud also has appeared in the
threat Of a Republican member to de-
mand doubling of the present one-cent
duty on sugar. Democrats and some
Republicans, however. will fight the
sugar proposal, being determined not TO
omen the tariff foodgates under any
consideration.
Secrecy, which has marked sub-com-
mittee conferences, will rule in the fun
committee. Unprecedented safeguards
are being established against leaks:
There have been insistent demands
from all sections of the country for
public hearings. but none will DC he'd
q nj 70 raripd out.
ONLY part Of the recommendation IN
the hill meet with the approval of the
full subcommittee.
A normal tax of per cent would be
levied by the proposed bill on all in
comes above the proposed exceptions.
Above $4,000 and $4,000 and up TO
$4,000 per cent would be levied. Sur
taxes would begin at $4,000 and con-
tinue upward, none being higher than
30 per cent. Almost 100000, 900, it is
believed. could be raised during the
coming year by this plan. whereas Sec
rotary McAdoo's suggestion of starting
taxes at 81 800 and $4,000 contemplated
raising s340, 100000.
Liquor Taxes Increased
A decision to recommend increasing
tho tax on whiskey from Sl.l0 to 81 a
gallon and that on beer from Sl.5O TO
e. so barrel was reached. after deter
mined efforts to make it higher had
failed A soft drink tax also is recon-
mended.
In an effort to protect the manufact-
urer and smoker Of cheap cigars, 1t was
decided to fix a graduated tax on all
kinds of cigars. Cigarette taxes would
he doubled. Wholesale and retail TO-
bacconists woulL be taxed S25 and 50,
respectively, annually.
Suggestion Of fiat per cent rate
on both freight and passenger trans
portation proceeds was rejected IN IA
vor Of rates higher than per cent on
Messenger tickets and 4 per cent on
freight charges.
A per cent tax on the factory cost
If automobiles and musical instru-
monts is recommended. Automobile
manufacturers protested vigorously TO
tho subcommittee to-day against this
tax.
Amusement places, including motion
picture houses and baseball parks
would pay, stamp taxes would be
levied on bonds. certificates OF stock,
agreements of sale. promissory notes.
certificates of profit, memorandum OF
sales. conveyanceS. entries forthwith OF
Goods from warehouse invoice, power
of attorney, psrlor car seats and tele-
phono and telegraph messages.
Refined petroleum taxes also are