Evening journal., 1917-05-03
billion AND A HALF
WAR TAX NEXT YEAR
Incomes and Excess Profits
TO Bear Greater Part of
Extra LevieS
$1,000 MEN WILL
HAVE TO SETTLE

WASHINGTON. May 3.-One bill
lion, five hundred million dollars at
least will be raised by direct taxation
next year. in addition to that now
raised by this method
That is the outstanding develop
ment OF the first session Of the Com
mittee on Ways and Means. While
every safeguard to prevent members
disclosing the contents of this meas
ure was taken, secrecy going to the
extent OF having only one confidential
copy printed for each member and
requiring him to leave it in the COM
mittee room upon adjournment, it
was learned that incomes and excess
profits are to bear the great part
of this war-tax burden.
Secretary of the Treasury McAdoo
insists that oven more than the ST.
500.OOOO00 in new direct taxes should
be raised to meet the expenses of the
first year Of the war. He wants Con-
gress 70 pass a bill that will raise
between S0000O.000 and S2,0OO,-
100000. Some of the Democratic
members Of the committee are in
favor of that plan but the Republi-
can members are contending it should
NOT he more than S1.250 100000
Provisions Of the Bill.
The provisions of the bill as pre-
pared by the subcommittee and virtu-
ally agreed upon by the twenty-three
members of the full committee will
yield during the next year, it is esti-
mated. these amounts:
income taxes and excess profits,
$1,000. 600 900.
Passenger fares. Pullman tickets
SS00O0,O0O
Automobile manufacturers. s75,-
600 600.
Theatres and amusements, 49,
600 600.
Total. $3.50 100000
The estimate that the income and
excess profits tax will yield $780,,
OO0.0 900 is based on the increased rates
reported by the subcommittee. They
propose that a tax on incomes shall
begin when the $1,000 a year mark
is reached by unmarried persons and
the s. 900 mark by married persons
The tax begins at 2 per cent. and
runs up to % and 80 per cent on the
larger incomes.
1t is generally conceded that every
person now paying an income tax will
have to pay at least double that sum
in the future. Under the terms Of
the new bill the single man receiving
less than $4,000 will pay per cent.
on all over $1,000. and the man re-
ceiving more than $4,000 now will
pay A per cent. instead of ? in the
future. The present per cent. tax
on excess profits is to be increased
to 16 per cent
Tax on Passenger Fares.
Passenger fares are to be taxed 10
per cent. but no ticket selling for
less than twenty-five cents shall he
taxed. The passenger must pay the
tax. Pullman tickets and sleeping
car berths viii bear the same increase
ia rates, but the taxes on bills of lad
ing will be comparatively small.
IL developed today that the bill as
framed by the subcommittee would
make radical changes in postal rates.
Zones for second-class matter with
greatly increased rates would be es-
tablished The proposed rates follow:
Two cents a pound or for each frac-
ton thereof in the first zone, three
cents in the second and third; four
cents in the fourth and fifth five
cents in the sixth and seventh, and
eight cents in the eighth.
In addition. one cent would be add
ed to the cost Of mailing each ounce
or fraction thereof of first-class mat
ter, postcards would require a two
cent stamp instead of one-cent one.