Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-07-01
REVISED WAR TAX
BILL COMPLETED
House Measure Virtually Rewrit-
ten by Senate Finance
Committee.
REDUCED TO S1,652,17O,OOO
Incomes and Excess Profits to
Bear About Two-Thirds of
New Burdens.
REDUCED TO s1,e52,17o,ooo
IBv Associated press1

the $1.SO0.000.000 war tax bill passed
by the House five weeks ago was COM
pleted to-day by the Senate Finance
Committee. The measure yirtua,,v was
rewritten and reduced to S1.652, 10000.
with no authorization of additional
bonds. The final draft will be given
formal committee approval on Monday
and reported to the Senate by Chair
man Simmons early next week.
Incomes and excess profits will bear
about two-thirds of the new tax bur.
dens under the revised bill-about a
half-biliion dollars each-with a 1arre
share of the remainder secured from
liquors and tobacco
Many House taxes were entirely elm
mated by the committee and others
added.
Radical increase OF taxes on war
excess profits of corporations. partner
ships and individuals. decided upon to-
day, enabled the committee to dispense
with the suggestion for an additional
bond issue of from $500, 100000 to
$1,000, o00,0
Senator Stone withdrew an amend
the bill falls short by about $500, 900. 600
OF meeting the Treasury estimates for
war expenses next year, the committee
decided that by issuing s135, 900 of
authorized. but unsold, Panama Canal
bonds the expenses can be met until
Congress reconvenes in December.
AS finally drafted. the much debated
publishers tax section proposes a per
cent tax upon publishers profits over
$4,000. yielding s7.50O.O0o revenue. and
an increase of 4 cent pound in
second-class postage rates, yielding
100000.
EXCESS PROFITS GRADUATED
FROM IL TO 80 PER CENT
Excess profits due to the war, under
the revised bill, would bear $3.50, ooo.-
600 in taxes graduated from 12 to 40
per cent. according to the proportion
OF excess. This is an increase of $685.
100000 over such taxes under the pres
ent law, of which repeal is proposed.
From income taxes s532,7po, 900 would
be raised. the committee approving the
House plan of lowering income tax
exemptions to $1,000 for single persons
$4,000 for married persons. additional
norma! taxes Of per cent upon in
comes up to $4,000. and surfaces grad
uated from to 3a per cent upon larger
incomes.
The committee also changed the plan
of collecting income taxes from that of
collection at the source" to "informa-
ton at the source" TO accomplish d.
rect payment.
This estimated revenue to be gained
from other sources under the revised
bill follows:
Liquors. s155.ooo.ooO: tobacco, $780,
6o0.o00; freight transportation. ST.
100000; passenger transportation, $751;
100000: automobiles. 100000 (pay-
able under the revised bill by pleasure
car owners and not manufacturers);
amusement admissions. $4,000. 900, and
tirst-class mail. s50,oo0,0O0 (by retain
ing the 1-cent increase for first-class
mail and striking out the increase upon
postcards).
The committee struck out entirely
the House 10 per cent general tariff
tax upon virtually all imports. 1t sub
stitutcd consumption taxes of u cent
pound on sugar, . cents on coffee. s
cents on tea and . cents on cocoa and
substitutes.
SPANISH WAR STAMP TAXES
VIRTUALLY REIMPOSED
All Spanish War stamp taxes would
be virtually reimposed under the bill,
the committee adding new tax of 1
cent each on bank checks over SIS.
Other changes in the revised bill in
clude prohibitive tax to stop manu-
fa Nf of tSf IoI
taxes on other intoxicants are vir-
tually doubled; elimination of House
taxes of 100000 on inheritances and
$1os.000,0o0 retroactive taxes upon 1916
incomes: repeal of the special 1914 per
cent tax on war munitions; repeal OF
the drawback" re-export allowance
given sugar refiners; extension to
parcel post packages of a tax OF / cent
for each % cents paid for express
transportation; elimination of House
taxes on consumers electric light,
power and gas bills. all insurance, jew
clry, club dues. tires and tubes. must
cal instruments. motion picture films
and chewing gum.
House levies OF per cent upon gross
sales of many manufacturers were
stricken out entirely. and taxes on pat
ent medicines. perfumery. cosmetics.
Pullman accommodations and soft
drinks greatly reduced.
Believing a compromise on prohibit
ton legislation will not stop consump-
ton and revenue yield from distilled
spirits. beer OF wines. the committee
made little change in the House liquor
taxes.
In greatly increasing the tax levy on
excess profits. the committee also pro-
vided for such taxation on corporations
undistributed surplus. That earned in
1917 will be allowed general tax ex-
emption Of 90 per cent, and that earned
prio rthereto would be taxed, when dis
tributed, according to the revenue rates
existing In the year when earned.
SPEND 9Th OF july AT sEAsHORE
Rate via G. & o. to Old Point and Nor
ard and tth. Limit July 7--VIrginia