The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1917-12-12
Leaders in Congress to Heed
Advice of McAdoO Based
on Experts Report
INHERITANCE TAX
WILL BE RETAINED
Committee Will Recommend That They
Shall Be Part of the Federal Levy
and Revenues Shall Go Toward Pay
ing the National Debt.

WASHINGTON, Dec. l2.-Seeretary
Of the Treasury McAdoo has informed
members of the ways and means COM
mittec that the present revenue bill
would need several amendents to i'm
prove the terms Of the excess profits
tax section and also other notifications
that experience had shown were neces-
sary for the successful application OF
the law. Leaders in the committee de-
clared today that they purposed to
heed. 50 far as possible, the recommend
ations Mr.. McAdoo would make as the
result of the study Of the law made
by the excess profits committee, head
ed b. c. T. Adams of Yale university.
There is no intention Of repeating
the law" declared Representative
Kitchin, chairman of the ways and
means committee "Thosc who are
talking about a repeal. it appears to
me. have nothing to offer better than
! the present act ~
! Mr. Kitchin said that the committee
would begin hearings along the line OF
/ the recommendations TO he made by
the special committee, and endeavor TO
| improve the language and probably
make one or two important changes.
One eff the amendments will cover the
otcupational tax Mr.. Kitchin himself
framed this section. and he viii fight
for its retention. although he and 9th
= 81. - IN
4 repeal of the exemption Of congress-
men and other federal officials from lis
provisions. This section was slipped
i'm the bill behind the closed doors of
the committee by MIR. Kitchin after the
bill had been passed by both houses
II imposes a tax of 8 per cent on sal
aries and profits of individuals in ex-
cess Of $4,000.
''Fxccss profit laws generally have
made no effort 70 tax salaries and
wages, said Representative Cordel
Hull, a member of the committee, who
is regarded as its income tax expert
''If salaries are to be taxed, however
those OF government officials would bt
rs properly subject to the tax as sala
) rirs and wages Of other individuals. >
NJ. Hull fought against the inclusion
- this section in the present law, anC
= i expected that he viii insist tha
Il shall be retained now that the com
p ri'tee has established a precedent. Blu
h intends T. insist that the eXemptioI
.lause be stricken out and federal Off
1 als. including congressman, be taxet
! allie with other individuals
The special committee created by tn
treasury department to consider tn
>. excess profits section will report no
ii only on this section but other provi
sions of the bill. Two Of its importan
!. recommendation will be:
!. That the inheritance tax law
: shall be retained not only in the
e present hill lut in all further rev
/; eAg. lil's. The committee Wi re-
T. ummend that after the war iuheri-
taHce taxes shall be part of Fed
cral tax levy and that the revenues
, aceruing from them be used to pay
the national debt 1t is estimated
that from $3.50, 900 to 100000,
' eco will be obtained from this
! source yearly. 1t will be proposed
by this committee at the close Of
?, the war that the inheritance tax re
turns be devoted to a sinking fund
10 bONuS ISSUED LOT war purposes.
e >. That business men be allowed
! to pay their excess profits tax in
iustallments.
. The treasury committee will say i
:: s report that if these excess profit
= tra to be paid at once there will be
n, reat financial stress as most men wi
. gc required to 20 to the banks fC
T. cans, thereby causing serious cond
ion in the money market by the witt
travail of vast amounts from use.
!, has been estimated that nearly all IL
i excess Profits earned have been plac,
back in business in improvements an
expansion and that concerns whiC
! have done this are now dcvoting q
~ heir energy 90 war work for this ar
- other governments. Ii will be impo
'iblc for them to pay the entire amour
v 1T once without great discomfort,
IS argued, and it will be propose