The Birmingham age-herald., 1917-05-09
Ways and Means Committee Completes Schedules of Taxes Which Are
 to Be Paid
EVERY CLASS TO BEAR BURDEN OF MAKING
 WAR ON THE KAISER
Vigorous Opposition Is Ex- pected From Both Demo- crats and Republicans
 on Various Features

on Var1OuS FeatureS
 Washington, May 8.-A war revenue bill designed to raise $1, 1,800,000,000 by taxation dur ing the coming year was ap- proved in the House ways and means committee late today by unanimous vote.
 Chairman Kitchin announced that the measure will be reported to the House tomorrow to be brought up for consideration Thursday. He thinks it will be passed by the House without political division within few days, though there will be vigorous opposi- tion to some features from both demo- crats and republicans. In the mean time the Senate finance committee will begin public hearings on the bill Friday, with view to being ready to report soon after the House acts.
 TARIFF DUES INCREASED
 To bring the amount to be raised up to the desired total, the House committee at todays session wrote into the bill a flat increase of 10 per cent in all existing tariff duties and 10 per cent duties on all articles now admitted free, all esti- mated to bring $24o,000,0o0, this moro than doubling the present tariff revenues. In addition 1t was decided to make all in- come tax increases retroactive, beginning with the present calendar year. Other taxes provided for would become effective upon the signing of the bill.
 The income tax increases applying to both personal and corporation incomes, are designed to produce s5S3,00000o more than the present income tax receipts
 Most of the new revenue will come from the income excess profits, and inherit ance taxes and additional tariff duties, but the levies of the bill would reach into many other sources. Letter mail rates would be increased from to 3 cents an ounce and postal cards from ] to cents, while $19,o00000 would be added to charges against newspapers under new system based on the present parcel post zones. Internal revenue taxes upon liquor and tobacco would be materially increased, and there would be taxes on auuse- ments, and stamp taxes of wide scope.
 DOUBLE INCOME TAX
 The war income tax section would double the present normal tax of per cent on individuals and 5 per cent on corporations. It would lower the exemp- tion of individual incomes from $4o00 to 5000 in the case of married persons, and from 5000 to 5000 for the unmarried. Tn addition, beginning with incomes of $50oo, graduated surtax would be imposed in addition to the normal 4 per cent. rang ing up to B per cent on all incomes over half a million dollars a year.
 SURTAX SCHEDULES
 The surtax schedule follows:
 One per cent from s5000 to $750o, ? per cent s7500 to S10,00o; 5 per cent sl0,000-sla,- 800; per cent sl2. 00-$l5,000: 5 per cent s15, 600 s20 900; 6 per cent $20,oo0 $40, ,0oo; per cent s4o,oO0-$eo,0o0; Il per cent s6o,o0o- $S0.0J0; 14 per cent ss0,o00-$100,o00; T. per cent s10O, ,O00-s sl5o, ,000; 70 per cent $15o,00n- $aG0O00 "A per cent $2o0. .000-$250,0 600; P per cent s25o. .Oeo- -sS00. .0o8; 30 per cent $3ooooo- $5oo 0o0 S3 per cent on all exceeding $500 coo
 The provisions requiring the normal tax of individuals to be deducted and with held at the source of income would not apply to the new normal tax prescribed in this bill until after January l. 1918, and thereafter only to incomes exceeding $SOoO.
 INHERITANCE TAX
 In addition to the inheritance tax now in force, the bill imposes tax equal to the following percentages of its value upon the transfer of each net estate.
 One-half of 1 per cent of the amount not in excess of S500O0; 1 per cent be- tween s5o,0Oo and sl5o,ooo; 1is per cent sl5o.- GOO -$25O0Oo ? per cent s25o, s45o,o GOO; 2la per cent, s45oOoo-s1 ,O0o.oco; per cent sl,- 900, ,OoO- -s2, ,OOo 900; Sls per cent 5000 oo0s3,- 0OO, ,OOO; per cent 5000. .0O0- S4.0 GOO 900; Az per cent 4,o0o 0o0- s GOO, 900; per cent s5- coo coo $S, ,0Oo,oo0; per cent ss,0Oo, s1l.- oO.o00. 10 per cent sl1OO0. .ce0- sl5, ,oooooo; 15 per cent $15 000,OO0 and over.
 The exemption is lowered from s50,00a to s25,OO0 and a new tax of 1 per cent levied on estates between S25oo0 and $50,000
 EXCESS PROFIT TAX
 The bill proposes to bring in s2oo,ooo,ooo by doubling the present s per cent tax on excess profits.
 ''On distilled spirits the present tax of $1.1O per gallon is doubled; to the rec tifiers tax, 15 cents gallon is added, and fermented liquors are assessed $2.70 per barrel, instead of $l.50.
 The tobacco tax is doubled, except as to cigars. which are graduated from 50 cents to $10 thousand, according to retail value. Cigarettes. made in Or imported into the United States would be taxed an additional sl.2s per thoI- sand if weighing less than three pounds per thousand and $S.60 per thousand if more than three pounds.
 Newspapers would be required to pay per cent on all advertising collec tions.
 SECOND-CLASS POSTAGE
 The second class postage section says:
 After June l. next, the zone sys-
 tcontlnued on Page Three,