El Nuevo mexicano., 1917-05-10
WAR TAX BILL
PUTS HEAVIEST
BURDEN KNOWN
ON AMERICANS
Remotest Departments
Of Business and Home
Life Touched
NORMAL INCOME
TAX DOUBLED
Movies and Chewing
Gum Among Luxuries
Penalized
NORMAL INCOME
TAX DOUBLED
(By Leased Wire to New Mexican.)

(6y Leased Wire to New Mexican.)
Washington, May 9.-The new wal
tax bill was ready for congress today,
presenting probably the most extern
sive and greatest line of taxation ever
faced by the American public. Doub.
ling of normal income taxes with re-
duction of exemptions and increases
or surtaxes on great incomes; abso-
lutte elimination Of all articles on the
tariff free list with the imposition OF
a minimum duty of 10 per cent and a
horizontal increase or 10 per cent ON
all 10 taxable articles, together with
increases of taxes on internal revenue
and new taxes which reach to the re-
mote departments of business and
household life are proposed to make
up a yearly income of 81, 800, 000, 1000.
Increases on postage rates include
newspapers, which it is proposed to
charge on the parcel post zone sys.
TEN. Publishers who are hurrying to
Washington and some of those who
conferred today with ways and means
committee members said that such a
line OF taxation as is proposed upon
them practically will force many out
Of business. Mailing charges for pa
pers of average circulation, 1t was
said, would be increased many thou
sands of dollars yearly.
One draft of the bill proposed to
impose a tax of s per cent on receipts
from advertising but as finally pre-
pared for the house this tax was
made not to apply to newspapers and
periodicals. The new taxes include
levies on life and fire insurance, on
household electric light bills. tele-
phone bills, railroad tickets, admis-
sions to amusements, club dues, au-
tomobiles, pleasure boats, jewelry
and virtually everything that enters
into the life Of a family.
In an effort to spread the taxation
yer the business life as well as the
social life Of the nation, net taxes
are proposed on corporations, on ex-
cess profits and other elements OF
commerce.
The new war tax bill to raise ST.
800, 900 1000 In the next year was to be
reported to the house today with the
approval of the ways and means COM
mittee. 1t probably will be brought
up for action tomorrow and house
leaders expect its passage within a
few days but only after a severe at
tack by both Republicans and Demo-
Gratis on many provisions.
Most Of the revenue would come
from these taxes: On incomes,
normal rate of 4 per cent for indiyid-'
uals with exemptions of $4,000 for
married persons and $4,000 for unmar-
ried and graduated supertaxes on in
comes of more than $4,000; 6 per cent
on corporations, increased taxes to
be effective from January /, 1917. On
xcess profits, 16 per cent. On in
%heritances, new taxes by a graduated
scale running from 10 to Is per cent
present inheritance taxes to remain.
On imports all existing tariff duties
raised 10 per cent and 10 per cent
duty imposed on articles now admit
ted free.
Minor taxes proposed included: In
of letter mail from two to
three cents an ounce, of postal cards
from one to two cents and of news
paper rates by a zone system. LII
quor and tobacco taxes practically
doubled. I1evies by stamp taxes or
other means on life insurance poll
cies, pipe lines, electric power, tele-
phone and telegraph messages, the
aires, club dues, on manufactures OF
automobiles, cosmetics, proprietary
medicines, musical instruments, Jew
elry, moving picture films, chewing
gum and pleasure boats; on newspa.
pers s per cent of advertising %collec.
lions.
In the executive session today the
ways and means committee provision
to put a tax of one cent a pound on
coffee and two cents a pound on tea
in the hands of roasters and import
ers was adopted. This section is
drawn SO as not to tax the stocks in
the hands Of retailers and is expected
to produce about $4,000, 900 revenue.
The formal report of the bill to the
house was authorized today by the
/
To Strengthen Gold Reserve
A bill amending the federal reserve
act designed to attract state banks
and strengthen the gold reserves OF
the system was passed by the senate
today and sent to conference. AMI
amendment by Senator Hardwick per-
banks to charge one-tenth OF
l per cent to collecting checks and 4
drafts was put in the bin.