The Birmingham age-herald., 1918-07-31
Manufacturers of Autos, Pianos, Sporting Goods and Patent Medicines to
 Pay Higher Rate
MOTOR TRUCKS TO BE
 TAXED ONLY HALF OF
 THE INCREASED RATE
Ways and Means Committee, in Drafting New $S,000,- 100000 Revenue Bill,
 Slaps Taxes on Hard

Washington, July BOA 10 per cent tax on gross sales of manufacturers, producers and importers of automobiles, piano players, graphophones, sport ing goods, cosmetics patent medicines, cameras and similar articles was tentatively agreed upon today by the House ways and means committee, which is drafting the $s,000,0o0,OO rev. enue bill. The present excise tax on most of these articles ranges around 5 per cent and the increased taxation will produce an immensely greater revenue from these sources, al- though no estimate was made of the total yield. Motor trucks will be taxed only half the in- creased rates, on the ground that they are for business pur- poses and not in the same class with passenger automobiles.
 The automobile tax was discussed at length. It was felt by some members Of the committee that large proportion of automobiles are used for business as well as for other purposes, but 1t was agreed that it would be impossible to dif- ferentitate. Some of the committee final ly compromised on a tax of per cent on gross sales on original transa actons. There was no effort to put tax on gasoline, although such tax has been urged.
 TOBACCO TAX DISCUSSED
 There was some discussion by the com mittee today of the tobacco tax sched- ue The treasury department has rec commended doubling the present rates on tobacco. The committee wants more rev. enue than this would yield and will de- eide the increases later. Data laid be- fore the committee showed that con sumption of cigars in this country is de- creasing. while cigarette consumption is mounting rapidly,
 Chairman Kitchin made this statement tonight explanatory of the work of the committee.
 -sThe committee has had under con sideration today the excise tax. such as autonpbles, plano players. grapho- phones, sporting goods. cosmetic, and proprietary medicines, cameras, etc, and has tentatively decided to levy a tax of b per cent on the gross sales of the man ufacturer, producer oi importer, in lieu of the present rates. A distinction Is made between motor trucks and other classes of automobiles. Tn the case of motor trucks a tax of only per cent was agreed to be levied.
 MOVIE TICKETS CONSIDERED
 It also had under consideration tax on admissions to theatres. operas. nov ing picture shows, etc The committee favored doubling the tax on admissions and club dues. and also to impose cent tax on all admissions where the maximum charge does not exceed cents. Under existing law all moving picture shows, theatres and other amusementS whose maximum charge does not exceed , cents. are exempt from the tax.
 "The committee proposes tomorrow to take tip the luxury tax suggestions of the treasury department The tobacco tax schedule was postponed awaiting receipt of some data and statistics from the treasury department, which the com rlittee has asked for
 Today's committee action. it was said does not commit the committee to a general gross sales or consumption tax. although that may be resorted to at the last moment if the revenue yield from all other sources is not sufficient. It has been estimated that q gross sales tax on all articles and on transactions af- fecting all articles would produce up- wards of $2. .0o0oOO.0 900 if only 2 per cent rate was adopted
 A war profits superimpose6 tax has not vet been even tentatively passed upon by the committee. but it may be consid- cred this week.
 TREASURY SUGG GESTIONS CUT
 The committee cut the treasury sug- sestions in half. so far as rates are con eerned, on most of the articles affected hy todays tentative agreement on a 10 per cent tax on original sales of articles included in the existing war excise tax