The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1917-05-05
New Sources of Taxation for War
Revenues

Washington, ID. C.,-Largely IN
creased income and excess profits
taxes are contemplated by the Admin
jstration as part of plan for raising
$1,S07, 25O, ZOO, or one-half of the
estimated first years cost of the war,
by Secretary of the Treasury, Nc
Adoo.
It is also proposed to tax many i'm
ports now on the free list, and to
place stamp taxes on liquor, amuse-
ments, sugar, coffee, tobacco, soft
drinks, freight and passenger trans
portatiOn receipts, and on automo-
biies. The other half of the cost is
to he provided by 2,OOO,OOO,OOO of
the bonds authorized by the War Rev
enue Bill, passed on Saturday, by the
House, which is expected to pass the
Senate this week All of the data is
sent TO Congress for its cOnsidera-
ton and without recommendations
from the Treasury.
Probably the most far reaching
proposal concerns income taxes. The
secretary estimates that a fifty per
cent. increase on both individuals
and corporations for 1916, collect
ible next June, would yield $165, 0OO,-
600, more.
For 1917, he points out that to
lower the income tax exemption from
$4,000 to $500 for unmarried per
sons, from $4,000 to $1,000 for mar
ried persons, to leave the normal tax
rate at two per cent. but to raise the
super taxes materially, would make
the law produce S34O,OOO,OOO add
tional in June 1918, without changing
the corporation tax The highest
rate on supertaxes under the plan
outlined would be forty per cent o.
all incomes over $1,000,000,.
Increases in the excess profits tax,
both by making the present rate ap-
plicable to the calendar year of 1916,
and applying new increases next year,
he thinks, would raise 1925, 100000
this year and $200,000,000 additional
next year.
Consideration of the proposals viii
begin Immediately in the Ways and
Will be reported by it within two
weeks. The revised arrangement of
supertaxes on incomes as outlined
would be:
Incomes of $4,000 to $4,000, one
per cent; S40OO-S5O0O, two per cent
S5000-S10, five per cent; $4,000
100000, seven per cent; S20,00-S 40,-
90, eight per cent; 40,000-S60-000,
ten per cent; $50, O00-S80, 200, twelve
per cent; SSO, OOU-S1OO,UOO, fifteen
per cent; OO,OOO-S15O,O 900, TWEEN
ty per cent; $780, OO-$2OO,0 900,
twenty-five per cent; $500, 00O-S1,-
! 100000, thirty-three and one-half
per cent; S1,0OO,OOO and over, forty
per cent.
Proposed revenue from passenger
transportation receipts is estimated
on the basis of " one per cent. on each
twenty-five cent fare or fraction
thereof, within the United States, but
no taxes on fares not IN excess of
twenty-five cents" Freight trans
portation, it is estimated, would yield
$100,000,0O at one per cent. on each
twenty-five cents or fraction thereof
of each freight bill.
Proposed annual assessment on au-
tomobile, auto trucks and motorcy-
cles would be based on their selling
prices as follows: Not more than
$500 and $3.50, 50; $3.50 and 1000
So; $1,000 and $500, SIS; $500 and
| $4,000, ST; and more than $1,000, $40
A stamp tax of one cent each ten
cents, or fraction thereof, on admis-
sion tickets to theatres, baseball
games and other places of amusement
and tax of five per cent on the
wholesale cost of all musical instru.
ment, or parts, are proposed.-Chris-
/ tan Science Monitor