The Washington times., 1917-12-06
WAREXCESS
PROFITS TAX
. BEFUDDLES
OFFICIALS
BY BILL PRICE.

Washington business and profes-
sIonal men who are likely to be haro
hit under the "war excess profits tax
imposed in the last war revenue act
are daily awaiting the enlightenment
they are earnestly looking for as to
Just how badly they are going to be
hit.
A rood while is expected to elapse,
however, before light will be shed
upon the situation. The advisory
board which Commissioner Roper, OF
the Internal Revenue Bureau, assem-
bled to aid in the Interpretation of
the much tangled and awfully comph-
Gated provisions of Congress, is labor
ing daily on letters and inquiries from
all lines OF business and professional
men. It has been holding hearings
and expects to have others before any
thing like clear deductions are offered
to Commissioner Roper. Assisting
Mr.. Roper from the legal angle is a
board of legal advisers, headed by
Samuel Untermeyer, of New York,
The two boards are cooperating as
fully IS possible, the first being com
posed OF practical business men and
experts who are trying not only to
determine what Congress really In
tended in the various provisions. but
the effect OF those intentions upon
business. -
Small Merchant Worried.
In many parts of the country,
Washington Included. the small bust
ness man, with comparatively little
money invested. In lines that are.
bought freshly several timesIa year,
hears thessviews Of leading lawyers
that his profits are taxable anywhere
from 25 to 50-per cent under the law,
unless the4aWo boards and all the
other tax experts at work are able
to solve the Questions on basis. OF
what Congress- intended rather than
on what It actually wrote in the bll,
Milliners are fair samples Of the
complications involved in the law.
Their actual money Investment may
not be large and their profits may
be reAsohablY snug AS now inter-
pretsd they will pay the Government
taxes that win be.extremely severe.
Professional men are taxed per
cent on their Incomes above $4,000
in addltfoR 70 the normal income tax.
The faW, as generally read by law
ysrs, imposes & esheavy tax on small
business and professional men, and
IL Virtually a handicap on personal
ability. Very large concerns will not
be half as badty hit.7 ID
Lev Adst ne Rsxised.
That Congress wilishave to reno
vate the lsw.;tde this session d fore
gone conclusion in ali directions. but
pending such changes .ps & may
make, Internal Revenue Bufeau Of
hciaIE and the hHsiness and profes-
sionaI VIC / are going to be in a
topsy-turvy condition.
Commissioner R0perrecognizes that
even after the wise men working with
him have tried to interpret the vari-
Gus provisions in something like a
definite manner the most serious
trouble will be in educating the pub
lie as to the making of returns. The
original income act which has been
in existence for years was difficult
enough to understand, but when to
this are added all sorts Of new and
bsfuddlinE provisions. the troubles
ahead may be understood. Mr.. Roper
Is framing plans in his own mind.
and will endeavor to make them effec-
tive as soon as possible, for the widest
sort Of publicity explaining the in
tricate features OF the law. The pro-
gram will probably be the largest Of
its kind ever undertaken by Gov
ernment establishment with the ex-
ceptions of the two Liberty loans.
Returns Due Soon.
Returns by taxpayers under the war
revenue act must be made to collectors
Of taxes between January and March
l. the last day Of February being the last
day Of return. The taxes are payable
n the following June. The publicity
propaganda necessary must be begun by
january and that will not be possible
unless the advisory boards are able to
nut before the commissioners compre-
henaive interpretations Of the laws with
in q short time, as they today expected
10 do.
Members Of the board said today that
as to some parts Of the law they are
soon to reach conclusions They are not
yet ready to act on the provisions which
touch the small business man and profes
SIonal ran. leaving that TO the last
oz-InR 70 a desire to have information