The sun., 1918-11-30

original anti-child labor law was I'M
constitutional
The framework OF the amendment
adopted to-day was prepared by
Senator Lenroot (Wis) and redrawn
by Senators Pomerene and Kenyon
Uowa). The new provision received
the support of all but three of the
seventeen Senators on the Finance
Committee. Senator Simmons said he
! could not remember the names of
the three.
The committee next voted to exempt
gold mines from the excess profits tax.
This was done as an inducement TO
production with a view to adding to
the national supply OF the basic metal
OF national coinage and the increase
Of the Federal gold reserve and be-
in such industry.
In the bill as finally framed and
finished to-day the principal revenue
producing sources will be the taxes on
individual and corporate incomes and
the war excess profits tax.
Section Replacing Dual Plan.
The text Of the section which re-
placed the dual plan OF the Kitchin
bill is as follows:
That the tax shall be the sum of
the amount computed under the fol-
lowing brackets:
81. Thirty per cent. of the amount
of the net income in excess of the
excess profits credits and not in ex-
cess of 30 per cent. OF the invested
capital: and
80. Sixty per cent of the amount
of the net income in excess OF 90 per
cent. of the invested capital.
80. The amount by which 80 per
cent. Of the net income in excess OF
the war profits credits exceeds the
tax computed under the first and Sec
ond brackets
In the provisions for the 1919 taxes
the rates in the first and second
brackets are cut to 90 per cent. and
10 per cent. respectively, and the third
bracket-the war profits tax-is elimi-
mated entirely.
How Incomes Are Taxed.
In the Finance Committee draft of
the bill the income tax on individuals
and Eorporati tons alike is fixed attl9
per cent. for the taxable year 1918 and
at per cent. for the taxable year
1919. In the individual income tax
provisions for both years the provi-
! sion is included that on the first
$4,000 Of taxable income the tax rate
shall be but one-half Of the ordinary
| rate-for 1916 per cent, and for
| 1919 1 per cent.
The super taxes on individual in
comes in the bill completed to-day be-
| gin at ! per cent on the amount OF
income between $1,000 and $4,000 and
add an additional l per cent. tax for
each additional $1,000 in income up to
| 100000. Above Nhat amount the SUI
| pertaXes are:
! For portions OF incomes between
100000 and $4,000, 80 per cent.
! Between $4,000 and 100000. 90
! per cent.
Between 100000 and 100000, 60
| Between 100000 and 100000. 60
per cent
Between 100000 and $1,000, 900, g.
| per cent.
In excess Of 81 600 600. SIS per cent.
/ o'HcF nitCbin Rates Changed.
AS the bill was completed to-day the
( 20 per cent. tax in the Kitchin bill on
the amount paid for an arbitrary list
| or necessities when their price was
above stated amounts does not appear
, at all. Many of the 10 per cent taxes
on the out and out Injuries have been
cut out of the bill. and the rates on
some OF tho articles listed have been
reduced. The tax of . cents a gallon
on gasolene and the license taxes on
| motor cars have been eliminated, as
has been the stamp tax on bank
checks. The House provisions under
the excise and stamp taxes have been
reduced in great many instances.
The internalreven taxes on alcoholic
| beverages, advanced by the Kitchin
bill, were reduced so far as distilled
spirits are concerned by the Finance
Committee. The tax on distilled
spirits in the Kitchin bill from s3.2O a
gallon to s.. are reduced by the
Finance Committee to $40 a gallon
on beverage, whiskey and brandy. and
$500 on non -beverage distillates. The
Kitchin bill rates on wines and beers
were not changed by the Senate re-
visers.