The Watertown news. [volume] (Watertown, Wis.) 1917-1919, 1917-10-01
GREAT WAR TAX
BILL COMPLETED
BY C0NFEREES
Excess Profits Revenue at Billion
$500, ,O0O,O 600 Added
to Measure.
TO BECOME LAW THIS week
New System Of Graduating Amount OF
Assessment Of Corporations ls
Adopted-Income to Bring
Huge Sum.

Washington, Oct. 1.-The joint con-
ferees on the war revenue bill COM
pleted their draft after two weeks Of
deliberation. Immediately after the
bill was approved, Chairman Kitchin
OF the house ways and means commit
tee hurried with it to the house, where
it was formally offered.
AS revised by the conferees the
measure has been raised from the levy
an aggregate OF approximately $2,7OO,-
100000. Chairman Simmons of the
senate finance committee estimated
that the increase made by the con-
ferees would approach $275, 100000.
In Conference for Months.
The war revenue bill has been be-
fore congress for nearly four months.
As redrafted by the conferees, said
Chairman Simmons, it has been i'm
mensely improved, and he believes
there will be no obstacles to its speedy
approval by congress this week.
The chief changes made In the bill
by the conferees were in the excess
profits, income tax, liquor taxes, taxes
on tobaccos and cigars, insurance, war
stamp taxes, Inheritance tax, postal
rates and transportation.
The income tax rates as agreed upon
are substantially the same as passed
by the house with the Gerry amend
ments as passed by the senate The
house agreed to the senate amendment
increasing the normal tax on corpora
dons from 4 to 6 per cent The bill
abOlishes collection at the source
and substitutes information as pro-
vided in the senate amendments ex-
cept as to what is known as the ''tax
free covenant bonds" Of corporations.
Profits Tax Modified.
The excess war profits tax, as
agreed to by the conferees, is a modi-
fcation of the senate bill. the prin-
cipal changes being in the maximum
and minimum rates OF exemption upon
which the tax is to be determined The
senate graduated scale OF exemptions
ran from 6 TO 10 per cent, while the
house exemption rate was s per cent
The conferees adopted the graduated
rate OF from to 8 per cent.
In lieu OF the house zone tax on sec
ond-class publications the conferees in.
cluded a new zone system effective
July /, 1918, with different rates for
reading matter and advertising mat
ter, with special but Increased rate fol-
religious, agricultural and other publ
cations.
Postal Increase.
A fiat increase on reading matter
Of one-fourth Of cent per pound
until July 1, 1919, and one-half CEN
thereafter was provided. Advertiser,
matter exceeding per cent OF alt
total space would be taxed from Il tc
2A cents additional until July 1, 1919
and from one-haf cent to AZ cents
more until July 1, 1920; and from
three-fourths cent to 6A cents to 1922
and from one cent to nine cents there
after.
An additional tax OF one-half cent
per pound until July l, 1919, and one
fourth cent thereafter, on religious
agricultural, fraternal and similar pub
lications was adopted.
The one-cent tax on letters, except
Ing drop letters and postal cards, wa.
restored by the conferees. A one
cent additional tax on postal and pri
vate mailing cards was added
Railroad Tickets Hit.
The conferees levied 3 per cent Il
lieu Of the senate rate Of s and tn.
house rate Of 10 per cen, On passen
ger transportation, estimated to rails,
from the compromise levy about $50,
100000 instead Of S37,5OOOOO unde
the senate plan. The per cent ta1
on freight transportation was retained
and the tax on express transportation
was increased so that one cent woul,
be levied on each 20 cents paid in
stead of each Is cents. The house II
per cent tax on Pullman accommoda
tions, cut to ) per cent y/the senate
was restored and is estimated to rails
100000.
In lieu Of the house per cent ia,
on sales Of automobiles by manufac
turers and the senate federal licens
tax on owners, the conferees adopte,
e3 per cent tax on all motor vehicles
including trucks. payable by manu-
facturers. producers and importers.
Taxes Of 8 per cent on manufae
turers' sales Of musical instrument
and jewelry also were written in, wit
a tax Of one-fourth cent a foot O.
motion picture film.
On sporting goods, the revised bill
levied 8 per cent on manufacturers
sales instead Of 8 per cent propose
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