The Barre daily times. (Barre, Vt.) 1897-1959, 1917-05-18
RETROACTIVE TAX
ON INCOMES STAYS
IN REVENUE BILL
House Refused by Vote of 1873 to 81 to
Strike Out Section, Although Wig
orous Opposition Was
Presented.

Washington, d. c., May ls.-Resumine
the debate on the amendments to the
war tax bill the House to-day by vote
of l23 to 81 refused to strike out the
section designed to levy retroactive tax
of one-third the amount of last years
income tax.
Vigorous opposition to the section was
led by Representative Madden OF Hi
nois. Representative Foss OF Ohio also
attacked the section as dangerous be-
cause OF the possibility of setting pre-
cedent for wide range of retroactive
taxes.
Drastic increases were written into the
bill by the committee of the whole yes
terday after announcement by Demo
cratic Leader kitchin that Secretary Me-
Adoo's latest estimate of one-h half of the
cost OF the first year of the war, which
the bill is intended to cover, would be
about $2,245,O00,0o0.
The increases, 25 per cent on all the
proposed surtaxes on incomes between
$4,000 and 81 100000 as reported by the
committee and 45 per cent surtax on
incomes in excess OF 81 100000, as pro-
posed by Representative Lenroot of Wis
consin, were included by vote of l46
to 10Y. Representative kitchin and 9TH
ers who were opposed to increased in
come taxes voted formally against the
proposals, but previously Mr.. Kitchin
had declared on the floor that he did
not see how any member of the ways
and means committee could oppose them.
No attempt will be made in the House
Mr.. Kitchin announced last night, to
raise the total of the bill TO $2,245, ,000,-
900, 1t is probable, however, he added.
that the total will be larger than the
81 100000, 900 contemplated in the origi-
nal measure, and If it is found that more
money is needed, another bill will be
drafted at the next session of Congress.
Many members believe further efforts
to make the bill total S2,245,000,00o will
be made on the floor or in the committee.
Regardless OF Secretary McAdoo's es-
innate Mr. Lenroot announced last night
he will seek to have stricken from the
bill the taxes on light and heat, Oppo
nents of the second class mail rates
increase also will continue their fight.
A statement prepared by commit.
zee "a pert sdiu IudL tie SUI LfA ltttl eases
would add about $66 100000 to the total
Of the bill during the coming year. State
ments on the floor as to the amount
they would raise ranged from Slo0.o00,-
900 downward
The surtax, which would be added to
the normal taxes provided by the old
law, under the Lenroot amendment |
would he as follnws.
Between $4,000 and 100000, 10 per |
,ent; $4,000 to $4,000, 1874 per cent;
$4,000 10 $4,000 ,l7Ia $4,000 to $780, |
100, 2l4 S150,o00 to 100000, 25; $780,
100 to s250, 900, 30; $3.50, 900 to $500 900,
1881 100000 to $500, 900, 3712 $780,
100 to 100000, 4lA, and 81 100000 and
,ver, 45 per cent.
Representative Leonard assailed the
,lan of taxing the poor on necessaries of
ife and permitting the rich to retain
heir wealth, subject to emergency taxes.
Efforts of Representative Curry of Cal
fornia to insert an amendment to in
rease the exemption on single persons
rom 81 900 to $1,000 and on married per-
ons from $4,000 to $4,000 failed by a
.ote of 100 to so.