The Birmingham age-herald., 1917-05-10
NEW WAR TAX WILL EXTEND INTO FABRIC .OF EVERY HOME IN THE UNITED STATES
When Put in Force People Pay at Rate of $33,
 Per Capita
MEASURE NOW BEFORE LOWER HOUSE, WHERE DEBATE WILL START
Tremendous Fight Expected on Many of Schedules. Senate Committee May
 Amend the Bill

Senate Committee May Amend the Bill
 Washington, May 9.-The war tax bill, extending it's excises to the fabric of every American home, was formal ly presented to the House today by the ways and means committee with plans for quick passage.
 As a forecast of what may come later, it proposes spe- cial taxes to raise $1,800,- 100000 in addition to the present normal annual reve- nue of $1, 500,000,000. When it's terms are effective the American people will be pay ing direct taxes of $33 per capita. The people of the British Isles-half as many now pay per capita taxes of S60.
 While the principal features of the new war levy are increases in income and profits taxes, internal revenue rates and | customs duties, many of it's provisions reach the innermost structure of every home and make up list of taxes proba- bly the most formidable ever faced by the American people.
 The household, light, heat and tele- phone bills, admission tickets to amuse- ments, fire and life insurance, rail tick 1 cts automobiles automobile tires and tubes, soft drinks, postage rates, golf clubs and baseball bats club dues and host of other everyday necessities or luxuries come under the taxation.
 HARD ON NEWSPAPERS 1 Increased postage rates on newspapers.
  publishers say they will force many news papers out of business
 Already protests against many features of the law are pouring in and attacks upon it will center in the Senate finance committee, which will conduct public hearings on it and probably make soma amendments.
 When Democratic Leader Kitchin pre- sented the bill to the House today, he announced that general debate would be- gin tomorrow and that he had hoped to pass it by Saturday. There is some ob- jection, however, to hurrying the bill. and it probably will be passed the early part of next week.
 REPORT OF COMMITTEE l In presenting the bill, the ways and means committee made report. saying 1 in part:
 | After carefully considering the exper- | fence of the European countries at war. the sound economic policy for the pres ent generation to bear fair and equita- ble portion of the burden of financing the war and recommended that the remaining 1 contemplated expenses of the government for the remainder of this and the whole of the next fiscal year be raised by taxa ton. The effect of this recommendation 1 is that about one-half of this contem- plated expenditure will be met by taxa tion and the other half from the proceeds from the bond.
 | It is estimated that the receipts of the 1 federal government, including postal re- ceipts for the next fiscal year under ex- isting law, will amount to s1.500, 00o, 900. The proposed bill Is estimated to yield during a 12 months period 1900 100000 ad- dtional. This will make the total receipts of the government for the next fiscal year 8, 300. .000 GOO. about sS3 per capita as compared to Great Britain. with a pop l ulation less than half of the Unitad States. whose receipts. including postal 1 receipts, for the year ending March 3l 1917, amounted to g. ,Ooo, 900, or about seo per capita.
 THINK PEOPLE CAN PAY 'The committee believes that the Amer ican people were never in more favor | able condition to pay d reasonable amount of taxes for war purposes in dition to those for normal purposes. U n at the present time. The committee has en- deavored to distribute equitably this ad-
 
 ditional burden of taxation and so to levy the proposed taxes as to necesstate as little readjustment or disturbances as possible"
 The committee estimated the war ex- penses for the remainder of this and the whole of the next fiscal year at about 8, ,S0O. .o0o,00o exclusive of the bond issue to finance the foreign loan We have already authorized bond is- sue of $2.o0O.oOO. .0Oo." it added, Ito pro- vide a portion of the necessary funds to finance war Therefore, the amount nee essary to raise by taxation. or further bond issue at this time is sl,soo ooo,ooo " EXACT AMOUNT | The bill today is calculated to raise. in exact figures. s1,s1O. 10000, It is expected 1 to produce this yield: Income tax New war income tax, $5sz.- 100000; retroactive tax on incomes, s1oe O0o,ooo
 Additional excess profits. los,oooooc
 tcontinued on Page Three,