The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-09-29
WHO WILL PAY THE NEW TAXES?
Chairman Ktcn Tells Just What His Committee Had in Mild
in Framing the s. 900 Revenue Bill Which Has Been
Passed BY the House and Is Now Pending in the Senate

in Framing the s.. 000. 000, 00'
Passed BY the House and Is
The Hon. Claude Kitchin, chairman
OF the house of representatives COM
mitee on ways and means, prepared
for the Forum, careful analysis of
the new war revenue taxes-clearly
defining the governments attitude to-
ward business and war profits. Con-
gresham Kitchin's article is printed
in full below
The administration. through the
Secretary of the Treasury, announces
that to properly finance the Govern
ment for the fiscal year ending June
30, 1919, 1t is necessary to raise by
taxation, in addition to the amount
now being raised under existing law,
50, 600, 100000, or a total taxation OF
$4,000, 900. 900.
When one contemplates the enor-
nous amount OF bond, isues which.
without this larger tax levy must
become necessary that the immense
burden which their annual interest
charge alone would entail up this
and future generations and the dan
ger of imitation of credits and rise
prices which large bond issues in
trction's insistence upon such increas-
ed tax Collection becomes at once
apparent.
The closest estimate of Secretary
McAdoo Is that we shall have to ex-
pend for the war at least $4,000. 0oo,-
900. If, with a new revenue meas
ure, we raise in all the desired So
000. 900. 900. we will have to isue for
the finance requirements Of the year
5000, 600, 900 OF bonds.
We have already issued and sold
$40. coo, 900, 0oo. totaling 500. coo, 0o0, =
900. issued and to be issued. exclusive
tihcates provided for.
The annual interest charge on these
bonds, at the 4 1-e per cent rate. is
100000. requiring more than
one eighth OF the contem plated
amount of taxes each year to pay.
should we make no furt her tax levy
and content ourselves with the col
lections under existing laws. our bond
issues by the end OF the year would
amount to $50, 600. 900 geo.
This would entail an annual inter-
est charge even IL We can keep the
interest rate at J. 4 per cent, OF 81 =
$4,000. 600. and it would take more
than one fourth of the collections
From this it is not difficult to con-
clude that not only is the admins
tration's determination to iasist on
such increased taxation economic
wisdom but an economic necessity.
Eight billion dollars Ia twice as
much rs this country or any other
nation IN the world has ever attempt
ed to raise by taxation in one year,
1t. is nearly three times the total
amount Of collection from the taxes
and bonds during the four years OF
the Civil war.
Harlships in Taxation Inevitable
1t goes without saving that to pro-
vide for the raising OF this huge sum,
cons ress has n most difficult and ap.
pailing task. But the duty is clear
the responsibility is vast. The Con-
stitution imposes the duty and re-
spoustbility OF originating such re-
venue measure upon the house of re
representatives.. and, under the rules,
they, in the first instance, are trans
ferred to the ways and means com
mittee. The committee has already
assumed the responsibility and begun
the first steps towards the perform
anee Of the duty and viii go forward
determinedly and as rapidly. as pos
sibie. Protest and condemnation are
inevitable. especially from those who
have neither duty nor responsibility
in the matter.
To frame any bin imposing high
taxes which Will have the approval
of ALI the taxpayers is impossible nor
is II possible 10 write bill, without
imposing hardships on many tax
payers or with inequalities and in
eQuaiities in cases There never has
been. and never will be, a tax law
law, civil or criminal, however clear
and just its provisions may seem.
works in it's operations hardships and
inequalities In cases that sometirn es
arise, 1t shall be the effort Of the
committee and congress to ohyiate as
far as possible such Inequalities and
inequities, To aid us in the effort we
have before us the experience of the
operation and enforcement OF the
present revenue acts.
Instead of bill additional to the
two or three existing acts. the com
mittee proposes TO embrace in one
comprehensive bill all the tax legis-
lation with respect to internal reve-
nue. Including the income tax. excess
profits tax. the estate tax and all
other excise taxes. It may be said
here, too. that no doubt In order to
ease the payment of the colossal
amount of taxes a reasonable INSTALL
r1ent plan will be provided for.
Where the Huge Taxes Win Fan.
How shall we go about to get the
50. 600 .000, coo? Congress and the
country are in entire agreement with
the president in the declaration in
his revenue message that the big in
crease must come chiefly from in
comes, excess Of war profits and the
iuxuries. Wealth. therefore. must be
taxed instead of poverty. luxuries in
stead OF necessities We shall have
TO retain the list, including the luxu-
ries and semi-luxuries. subject to the
excise tax of existing statutes and in
crease the rates in most, II not all. OF
Them and shall have to add many
articles to the excise tax list After
doing this. it is evident that the larger
portion of the increase must be de-
rived from incomes and excess of war
profits. The requirement OF such
large Increased revenues necessitates,
OF course, largely increased rates.
We should proceed along the con-
cretely practical rather than the alb
.stractly ideal line. What an ideal
and happy situation would confront
us IL, as the boy at the front is de-
voting to his country his full capacity
to fight, the business man, the money
maker. at home would make up his
mind TO devote to hie country dur-