The Washington times., 1917-05-09
WAR TAXATION BILL
READY FOR ACTION
Tariff Schedules Invaded to
Produce Desired Amount.
FREE LIST IS ELIMINATED
Ten Per Cent Increase Put on Dui-
able Articles By Committee.
CONTINUED from First Page.I


articles of all sorts. medicines and
various other articles in everyday
use are to feel the weight OF the tar
collectors hand.
The House committee has over
looked practically nobody in casting
about for revenue.
1t is planned by the Senate Finance
Committee that hearings will begin
late this week on the House bill. Per-
sons who desire to register complaints
may appeal there and the bill may be
rewritten to some extent In the up
per chamber. The House COMMITTEES
held no hearings, although II received
numerous letters and kilograms OF
protest and occasionally gave an In
formal audience to tho representa-
tive Of some affected interest.
Framework Of BILL
Incomes, inheritances. and excess
profits constitute the framework Of
the record-breaking taxation bill. The
man of wealth is hard hit whether
his wealth be In incomes from In
yestnents, estates left by his ances
tors, or pronts above per cent on
the capital invested In business.
The bill, however, goes from these
big things to little things affecting
practically every man. woman, and
child in America. The tax levy
strikes at everything from pills. cos
metics. and chewing gum to yachts
automobiles, and stock certificates.
There 10 q tax on railroad and
Pullman tickets, on freight bills, on
transportation of oil by pipe line
and steamship tickets. A 5 per cent
tax Is even levied on local telephone
calls, with q graduated tax on long
distance messages.
The rates on incomes, inheritances
and excess profits are sin addition
to- existing rates. Therefore, the
rates carried in the bill are to be
added to existing rates which are un
disturbed.
The Highest Tax.
For instance. when the new sur
taxes are added to existing levies or
big incomes it will be seen that prac
tically 80 per cent II assessed against
all net incomes above $4,000 pei
annum, although the highest tax In
the new bill is a super tax Of 80 pei
cent.
Beginning with the doubling Of thu
normal income tax on incomes un
der 5000, and reducing the exemp
tion to 81 900 for unmarried men ant
g, 900 for married taxpayers, the supei
taxes levied Tin addition to old supel
taxes), are as follows:
One per cent per annum upon thu
amount by which the total net income
exceeds 5000 and does not exceet
81, 500; 2 per cent on incomes between
$500 and $4,000; per cent on in
comes between $4,000 and S12, 500
four per cent, S12,500 to $4,000;
per cent, $4,000 to $40. 1000; 6 per cent
$40, 900 to $4,000: per cent, $4,000
to sec, 900; IL per cent, $4,000 Il
$50, 900; II per cent, $4,000 TO 800,
900; II per cent, $780, 900 to $3.50. 900
20 per cent, $4,000 to 100000; 2
per cent, $500, 900 to s25o, 900: ~ PEI
cent, $3.50, 900 to $500, 900; 30 per cent
$500, 900 to $500, 900, and 80 per cen
upon the amount by which the tota
net income exceeds a half million dol
lars.
Two Per Cent Increase.
The corporation tax is increased b!
2 per cent under the new bill
The excess profits tax Is likewis'
doubled, the new rate Of 8 per cent
added to q similar old rate, making
the total levy against excess profit
10 per cent.
The new income, corporation, an
excess profits tax are to be applied I
returns for the calendar year OF 1911
A still more sweeping retroactiv
blovv vas taken. however, At incomes
Al tba last moment the committe
vo,ad 10 Include in the bill a provi
ZION that All persons who paid in
comes for the year 1915 shall pay a
additional tax OF one-third upon thes
old incomes. This retroactive tax
to be paid September 1. It mean
that the income taxes TOT 1917 are nc
' WA tney se ~
Tr,ds-M,rk Details.
To mat obisctions that many larR
oorcsrns 1rera usinR trademarks an
-, Fl, o.,,,aI invested thereb-
soou wa -. =, ,h.i
bringing GOWN inc ,.N"
tax on excess pronts, the commIt!e
includes a new provision thst tIaoe
marks are NOT 70 Ue -IN -
actuaI capi. a, ..h nevnsnt FOR m
was al
S@ nS =, .b. obIs, kicks AGAINST tn
nro1t, Law has been that
Sa1eSsd ovsrcanitalIzation and hi
ba rdast the honestly capitalized SINAI
CONCERN
The war tax on beverages touche
everything from whisky and beer t
grape Juice. The whisky tax Is raise