Perth Amboy evening news., 1917-05-18
INCOME SURTAxES WILL
TAKE JUMP, IS BELIEF

Washington, May 1S.-The compare
lively few persons In the United States
enjoying incomes above $500 600 prob
ably Will have to pay an income surtax
of almost AZ per cent because Of an un-
expected increase of almost a half bill
lion dollars to the $500, 100000 war
revenue bill. The increase would bring
the bill up to s2,245 ,O00,0 900.
So sudden was the announcement
that the house was thrown into small
panic. Even Claude Kitchin, chairman
of the ways and means committee and
an administration leader, appeared to
have been unapprised of Secretary Nc
Adoo's request. Kitchin previously had
opposed Representative Lenroot's prop.
comes, but after word of the big jump
In the total, when Lenroot proposed
further increases, Kitchin said:
II do not see how any members Of
the ways and means committee can op-
pose this proposed tax"
Lenroot saved the situation tempo
rarily, for by his proposition he check
ed rising movement stimulated by
Representatives Hill, Madden and Mar
tin to send the bill back to the ways
and means committee for complete re-
vision. The house was manifestly
nervous, and It would have taken little
to stampede 1t. Garner of Texas plead
ed that the members stand by the bill
and If necessary return In October to
draft another measure. The Lenroot
amendments were adopted.
Firures Show Situation.
The serious1Jss CT the sitIaticg vas
emphasized by a statement by Chair
man Fitzgerald Of the house appropri-
ations committee.
Roughly we will spend So, ,103, ,000,-
900 by June 80, 191S," said Fitzgerald.
I'VE have passed the general deficiency
bill of $6S,000,O0O, the bond issue of
81 ,OO0, 100000. The urgent deficiency
bill Of $3, 800, 100000 Is before congress.
Interest on 100000 of bonds
amounts to $70,O00,00O. Pending food
bills carry appropriations of $24,000,-
900. The increased war risk insurance
amounts to $5O,00O,O00. We have au-
thorized bonds of $195, 100000 for the
Alaskan railway, the Mexican situation
and the Danish West Indies.
1--WE have an estimated revenue of
| 81 ,25O, 100000. That is what we have
| now with which to meet an estimated
expenditure of $4,000, 100000 and
bond issue Of So, 1876, 900, ,000"
The Lenroot amendments contemplate
adding 25 per cent to the surtaxes on
incomes above 100000. Kitchin said
the change would produce $60,000,000
additional. AS inserted in the bill the
income surtaxes will be: 100000 to
| $4,000, 13.304 per cent; $4,000 to
100000, 17.102 per cent; 100000 to
$15O,00O 21104 per cent; $150O00 to
100000, 20 per cent; 100000 to $780,
600, 80 per cent; $3.50, 900 to 100000,
83.304 per cent; 100000 to S500,000,
87.102 per cent; in excess of 100000,
41.104 per cent.
| kitohln 10 Doubtful.
The chairman of the ways and means
committee said he did not see how all
the desired increase could be raised by
taxation in the pending bill.
"If we had known the treasury de-
partment required 50, 2,465,0O0,000 In
stead of $500, 100000 we would have
raised the rates on incomes and excess
profits and other rates in the bill," he
told the house.
Members next applied themselves to
| trying to solve the problem Of raising
the additional money. Fordney Of
Michigan, ranking Republican member
| of the ways and means committee,
1 spoke of two cent tax on bank checks
less than S100 and graduated tax on
larger amounts. He said graduated
tax might raise $1,000,000000 during
| next year.
Members of the senate finance COM
| mittee say 1t will be two weeks before
the bill reaches the senate, and then 1t
| may be discussed for another two
| weeks. Before the announcement by
Secretary McAdoo reached congress
| Senator Weeks made statement say.
| ing the administration was endeavoring
| to raise too much money at one time
and that $500, 600 900 would meet all
the requirements Of the first year OF
| the war.
1