The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1917-01-26
NOTE sook SKETCHES

MI OWN oNG SrG1
January is nearly gone without the
customary January thaw that usually
gives the tobacco growers an emporium
ity to clean out their curing sheds and
put the crop in condition for market
ing. Zero weather that has prevailed
so largely during the month has frozen
out all the moisture in leaf and stalk
leaving it so dry and brittle that an un-
usually long spell of casing weather
must come now before growers will be
able to complete their work, which may
mean that the balance of the crop must
hang until we'll towards spring. Such
an event will prove disappointment
to the farmers who are depending on
the proceeds of their tobacco to meet
obligations already due, such as taxes,
interest and delayed bills that are gen.
orally met around the beginning of the
new year.
Did it ever occur to you what toll
Uncle Sam takes out of the tobacco
business? His revenue department
levies its tribute first, and it is greater
than the average price paid the grower
who produces the product. Every
pound of manufactured tobacco must
pay revenue tax of not less than 8
cents pound and this is collected be-
fore the tobacco leaves the factory.
Thus you must settle with Uncle Sam
before the goods are passed on to the
jobber, the retailer or the consumer.
After the manufacturer and middlemen
take their profits the consumer can
readily see why the solace he enjoys
from his pipe or cigar is costly. The
millions derived from tobacco is one of
the sources from which the government
obtains its revenue.
The tobacco trade will escape addi-
tional taxation at this time if an agree
ment arrived at among Democratic
members of the House Committee on
Ways and Means Committee, and which
is understood to have the approval of
President Wilson and Secretary Of
State McAdoo, is carried out. Accord
ing to announcement by Chairman Kit
chin, of the Ways and Means Commit
tee, the needs of the government will
be met by legislation as follows:
An increase in the Federal inheri-
tance tax or estate tax that will yield
500, 900, 600.
A new tax of per cent on profits on
the business Of corporations and CO.
partnerships in excess of per cent.
This will yield $214, 900, 600 per annum,
according to the estimates of the
Treasury Department and the Ways
and Means Committee.
Representatives Kitchin, Rainey and
Hull have been appointed as sub-com-
mittee to draft the BILL Mr.. Kitchin
is authority for the statement that
| UOuUS VIII DO lSSuGu W. LElG dIIIOuus Ol
$289, 900, 900 to pay the expenses of the
Mexican border patrol and the cost of
other government projects that are re-
garded as permanent investments. The
Federal inheritance tax, which has
hardly become effective, will be in
creased on graduated scale ranging
from per cent, the present rate, to II
per cent on estates of $100, 900, up to
an advance of from 10 per cent to Is
per cent on estates aggregating $15,
000,0 900 or more.
TX
The new Revenue Bill to provide an
additional $500, 600, 600 for the National
exchequer has made it's appearance in
the House and it is agreeable to notice
that the bill does not contain any new
direct burdens on the trade For so
much let US be thankful. For with an
additional increase of stamp taxes our
manufacturing interests would have
become demoralized in view of the
other increased burdens they have to
bear in the cost of production. But
the new Revenue Bill contains an ab-
solutely new revenue feature in impos.
ing an excess profit tax on corporations
and partnership concerns. This tax is
to amount to five per cent on business