Arizona republican., 1918-08-09
EXCESS PROFIT TAX WILL BE INCREASED
 BY THE COMMITTEE
Republican A. p. Leased Wire1

WASHINGTON, W Aug. S.-Tax of ten per cent on amounts paid for leased telephone and telegraph lines, includ- ing press associations and brokerage circuits, horse power tax on auto mobile owners and doubling of the tobacco taxes of the present law, in stead of higher range rate, as previ- ously agreed upon, were written into the SS,000,0 ,000.000 revenue bill today by the House Ways and Means Com mittee.
 Replies to Secretary McAdoo
 Chairman Kitchin in a statement is- sued tonight, replied to the telegram of Secreary McAdoo. favoring retention of the present excess profits law and a flat eighty percent war profits tax as an alternative, according to the greater revenue likely to be raised in each corporations case. MT. Kitchin's statement indicated that the commit tee will retain in substance the dual i or alternative system it agreed upon | but will insist that the excess profits tax, instead of remaining at the present rate4 shall be increased either as the committee has agreed upon them or by some compromise ad- | justent.
 Text of kitchin's Reply
 T received Secretary McAdoo's tele- gram on August B. said MT. Kitchin and with the exception of the retain | ing of the rates on excess profits 1T the existing law, I agree and I thinl the committee agrees. The Ways anC Means Committee ten days before the telegram was received determined or the motion of Representative Crisp, O Georgia, to have a war-profits tax a: an alternative for the excess profits the treasury to select whichever ta1 shall raise the higher revenue. 1 diC not give this action to the press be cause we were trying to work out th inequalities involved in the alterna tive system and to fix proper relation between the excess profits and war profits tax methods.
 Will EquaIize Relations q have no doubt the secretary of tn treasury, the Treasury Departmen and the Ways and Means Cimmitte will work out an equitable way i which to equalize these relations an adjust them. The committee tliOTOuSHly COuNlHCeu llldJ NllU LII alternative war-profits tax, the excess profits tax rates in the present laN are too low. l think the committe is unanimously of that opinion. Wit the excess profits rates tentativel agreed to by the committee and tn alternative war-profits plan, we wi catch everybody
 Resume of Committees Work
 MT. Kitchin's resume of today committee work follows:
 "The committee agreed to put a ia of three per cent on freight transports .tion within the United States, origin ating in a foreign country, to app on the part of the shipment within tf United States.
 We increase the tax on transport; tion of oil by pipe line from five six and half per cent.
 "A tax of ten per cent on the amour paid for leased wires and talking ci cults was agreed to. That includ telephones. There is no tax on the leased lines I have no estimate revenue from this source. The tax W be paid by the lessees.'
 "On motion picture films we agre' upon a new tax of five per cent on Il rentals received by the producer
 "The committee reconsidered the t bacco schedule and in substance agre' to double all the possible law rates.
 "tThe committee reconsidered the |; on users of automobiles and levied tax on the basis of horse power as fc lows: 23 horsepower, or less S10; A q 30 horsepower $50: 31 to 40 horsepow $50; more than 40 horsepower $50.