New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-04
Kitchin Attacks
Senate Tax Bill
Measure Amended to Re
lieve Rich and Levy on
Poor, He Says

Washington, Aug. chairman
Kitchin Of the House - Js and Means
Committee declared il statement to-
night that "intolerable inequalities IN
favor of the more prosperous have been
written into the war tax bill by the
Senate Finance Committee.
In rewriting the Ways and Means
Committees measure, said Mr.. kitchln'
the Senators have taken an enormous
load of taxation from the big business
concerns and placed It upon the shoul-
ders Of the farmer, the small business
man and others having modest incomes;
have stricken out by wholesale the
House proposals for taxes on luxuries'
substituting levies OF necessities; nave
eliminated income tax schedules that
would have taken needed millions from
the incomes OF the rich, and have added
a grossly negotiable excess prohts Sec
ton which is impossible of administra-
ton.
House to Resist Changes
The statement of the House leader
generally was accepted as a warning
that should the Finance Committee
amendments prevail in the Senate they
will encounter a stubborn resistance
once the measure gets to conference
The House bill, championed by MI
Kitchin, was drawn at bipartisan con-
ferences of Representatives, was sup
ported during debate by both Demo
cratic and Republican leaders, ana
nassed the House by virtually unani-
nous vote.
Among Mr.. Kitchin's criticisms are
that the Finance Committee struck out
the Lenroot amendment increasing sur
take, on incomes Of $4,000 TO $1,000
900. thus relieving large incomes OF
taxation totalling S66,00O,OOO an
nually; repealed the munition manu-
facturers' tax, relieving munitIon
makers of more than s25,000,000 a
year; exempted all corporations from
taxation for dividends received from
other corporations, relieving the big
corporations Of more than S50,0OO,0CO a
wear. and eliminated the additional tax
on the transfer of estates, relieving
big estates and inheritances Of $1,000
900 the first year and 100000 or
more yearly thereafter. The Finance
Committee struck out entirely, said Mr..
Kitchin, many millions of dollars OF
taxes which the House had imposed on
the manufacture and sale Of automo-
biles, tires, cigars, musical lnstru-
ments and numerous other Injuries,
and shifted over $l00,000,000 to the
owners of automobiles and to neces-
cities like sugar, coffee, tea and cocoa.
Tobacco Taxes Cut
The Finance Committee reduced
taxes on cigarettes, chewing and smok-
ing tobacco and snuff about $4,000
900, he pointed out, and put that
amount on coffee, tea and cocoa.
The Senate plan to tax war excess
profits over the average for a pre-war
period of three years-the years 1911,
1912 and i9l3-is declared by Mr.
Kitchin to be manifestly unjust, MAX
ing an undue discrimination in favor OF
the fortunate persons or corporations
who were highly prosperous during the
pre-war period. On that basis, he said.
a corporation Of Sl0,000,000 capital
making sl,5O0,O0O during pre-war
year end the same now would pay no
excess profits tax. while farm n worth
$4,000 making $1,000 during the pre-
war years and now making $4,000 VIII
pay over $1,000 taxes.
There are hundreds of corporations
whose annual profits reach into the
hundreds OF thousands and millions,
said Mr.. Kitchin, that will pay not
cent of excess profits tax under the
Finance Committees amendments
Under the Finance Committees amend
ments as to excess profits and incomes
the United States Steel Corporation
making over 500 100000 annual profits
will pay not n cent of tax either on in
comes or excess profits, while the little
farmer worth less than $4,000. making
4 profit of $4,000, will pay S2,O7l.'
Morgan and Schwab Exempt
Mr.. Kitchin cited Senate Committee
amendments, which he said would i'm
pose excess profits taxes on farmers
merchants, butchers. and blacksmiths