New Britain herald., 1918-09-04
REVENUE MEASURE
 REPORTED TO HOUSE
Bill Is Expected to Raise SS, lS2,-
 492,OOO for War Purposes

Washington Sept. 1.-The largest ] revenue raising bill in the history of this or any other nation was unani- mously reported to the house late yes ] terday by Representative Claude 1 kitChin. chairman of the ways and means committee, which drafted the measure after public hearings and daily executive sessions covering three months.
 The bill is expected to raise $S,182,- 92,000, and place about one-third of the estimated war expenditures for the next fiscal year on the people directly, leaving two-thirds of the projected ex- penditures of $24,328,5 56I,427, 10 be met by the bond issues.
 While the bill. doubling, and in some 1 instances tripling, the schedules in the present war revenue laws, chiefly reaches individuals and corporations benefited by the war, yet most citizens will feel an increase in direct taxation and all will feel the operation of the proposed law by the increased cost of living that necessarily will follow as the result of the imposition of the diff. ferent taxes.
 The bill follows closely the taxation sources of the last two revenue laws, increasing the rates greatly in most
 
 present laws. Very few new sources of taxation were found by the com m1ttee, which aimed, if possible, to double the returns from the last two previous revenue laws by doubling the rates. This was done wherever the situation permitted, but in order to obtain new sources of revenue the small Luxury list was ampltied, and semi luxury list based upon the price above 3. nominal figure. was added. Another new tax written into the bill IS a federal license on users of auto mobiles based upon horsepower.
 On it's face the bill will levy the pro- posed war profits and excess profits taxes only on corporations, Members of the committee asserted tonight that the excess profits taxes now proposed would not apply to salaried individ- uals, as they did the per cent on salaries over $6. .000 levied in last years taxation scheme. Section 3O1 of Title III. the war profits and excess profits tax title of the bill reported today. de clareB that 'fn lieu of the tax inn posed by the act of 1917 there shall be paid on. the met income of the cor poration" a tax to be computed either under the war profits method or the excess profits method. The words in diV1dual' and partnership do not ap- pear in this title of the new bill
 Consumption taxes were avoided through the imposition of radical taxes on beverages. Already prol1i bition leaders are asserting that this tax has been made so heavy with the expeC- tatfon of furnishing an argument for the defeat of war time prohibition It was asserted today that it. was expect ed that q. threat would be made during the discussion of this feature of the bill to impose consumption taxes in lieu of the tax on beverages if prohi- bition should become effective before tho end of the current fiscal year. Under the bill as reported it is esti- mated that s1,137, ,00o.0 900 will be raised during the twelve month period from this source. It may be found necessary, members of the ways and means committee assert, to insert a tax on breakfast necessities in lieu of the liquor impose, if the latter is re- duced materially or eliminated.