The sun., 1917-07-30
HOUSE AWAITS TAX
CUE FROM WILSON
1t May Be Willing to Raise
War Revenue Measure to
50, 500, 900, 900.
RESENTS SENATE ACTION
Ways and Means Committee
Wroth Over Treatment Of
Various Schedules.

Various Schedules.
WASHINGTON, July as.--r President
Wilson and Secretary McAdoo exert suf7
hcient pressure toward q greater tai
bill than the Senate Finance Committee
has agreed upon the House will insist
on a measure carrying not less than
s2.2co. 100000. The House might be
willing to add another $500, 200, 900 20
that ngure, according 10 members Of the
Ways and Means Committee.
The Senate Finance Committee with
out setting the details Of the measure
virtually has agreed to raise t1.s4S. 00o.-
600. an increase OF approximately $780,
600. 900 over the levy agreed upon by the
committee before Secretary McAdoc an
nounced the need or $500 900. 900 ad-
ditional war credits. The House bill
had then been reduced by the Senate
committee from $3.50. 100000 and the
House measure was s4oo. o0o, 200 under
the mark FIRST urged by Secretary Nc
Adoo.
Thus the Senate committee. faced by
s5, 500. .0oo. 900 additional expenditures
for the first year of the war. agreed TO q
figure about $4,000. 900 greater than
the measure framed by the House be-
fore the additional expenditures were
announced.
Resentment In the House.
The membership OF the House. par
ticularly the Ways and Means Commit
tee. Is deeply resentful over the course
pursued by the Senate Finance Commit
tee. both in the treatment OF various
schedules and the delay of more than
two months in committee. They are not
inclined to accept any great degree OF
dictation on the amount OF the revenue
levy from the Senate. particularly IL the
President and Secretary McAdoo will
stand behind their insistenCe upon
higher figures.
The House recognizes IN the Senate
committee measure a number OF inn
provements in the form OF certain sched-
ules and probably would accept certain
OF the additional taxes which House
politics prevented at the time the meas
ure was before the lower body. For
instance, the House revenue raisers will
accept the new war excess profits pro-
vision OF the Senate measure as more
equitable and a greater revenue pro-
ducer They probably will not object
TO the consumption taxes proposed by
the Senate committee which the deal TO
/ protect beet sugar and cotton made i'm
possible in the House, and they ulti-
mately will recede from the tariff in
crease by which IL was hoped TO raise
| $500. .Ooo. 900.
Bank Check Tax Possible.
c. .-.,.A A.. u1o.,.. -..--.4-.- - -.oa
! in the Senate committee measure. but
! unless the Senate restores the s6e, ,0eo. 200
expected from the increased income sur
: taxes carried in the Lenroot amendment
the two Legislative bodies will remain
far from agreement. Some members Of
the Finance Committee have suggested
| increasing the normal tax on individual
incomes from 4 to per cent This
change would not net more than sll,-
oo0.0 in revenue however.
The suggestion which Representative
| Fordney OF Michigan spoke of but did
not formally propose-placing a stamp
tax Of two cents per 500 or fraction
thereof on bank checks--may be brought
forward by the House as means Of
bringing totals TO within speaking dis
! tance OF the McAdoo figures.
Fordney estimates vaguely that such
a tax would net between $500, ,0oO, 900
| and $500, 100000
Kitchin RekardfuI of Poor.
Tax burdens of the poor must not be
materially increased in raising the addi-
tional $4,000. 100000 required to carry on
the war until July I, 1918. declared Ma
Jority Leader Kitchin. chairman OF the
House Ways and Means Committee.
Ability to pay should be the only
standard upon which the tax should be
assessed, Mr.. Kitchin will insist, and he
believes the taxes on necesSaries already
contemplated place about as large a bur
den on the poor man as he can stand
The first and largest advances. he ar
gues, should be msde therefore in normal
income and excess profits taxes.
II the tax bill now pending will pro-
vide sufficient funds to meet expenses
until some time early next year, as Ad-
ministration leaders say, Mr.. Kitchin be-
lieves Congress should not draft n new
tax measure before next session.
MeAdOo May Address Committee.
When the Senate passes it's version Of
I the revenue bill and asks for a confer
| ence the House may determine to send
! the bill back TO its revenue committee
| for revision following the redrafted bill
! in the form of substitute for the
/ Senate amendments But before the
measure comes back TO the House the
| Ways and Means Committee probably
| Will have finished its next job of franz
! ing bond legislation, and the action OF
| the House on the revenue measure will be
regulated largely by the terms of the
next bond authorization.
Secretary McAdoo undoubtedly will
appear before the committee during con-
sideration OF the new bond bill, and at
I that time will be expected to inform
the House how strongly the President
! Will Insist on raising large part OF the
| new credit through taxation bills.