The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1918-08-15

WASHINGTON. August l4.-Secre-
PAN. NcAdoo laid before the house ways
and means committee today his plan 1or
an excess profits tax with an alterna-
tive war profits levy to be included IN
the new revenue bill. The plan proposes
the retention Of existing rates III the
present excess profits law with the a.
tentative application OF an excess pro1-
ats Tux with a maximum of 80 percent
serSecfirs, about 90 per cent Of all the
business corporations coming under the
Schedule.
Secretary McAdoo estimated that the
treasury ,lan would produce from $780,
zoo. 900 to $4oo. 900 900 more than under
,1he plan tentatively agreed to by the
tcoxnnoittee recently.
e. III. conclusion of the conference.
1scretary McAdoo and Chairman kitchln
tIoined in the prediction that they would
ret together on a plan and Secretary
iSfcAdoo added that you can see that
mr.. Kitchin and have no bayonets for
each other"
Secretary McAdoo told the commit
<en that IL was imperative that the
ireyenue bill be enacted by congress De-
Hore the opening Of the campaign LOT
THE Fourth Liberty Loan is opened. sep
ltember 90. The secretary read to Inc
lcornmittee a telegram which he sent 10
president Wilson. July Is. in winch ne
Expressed concern at the report that the
congressional legislative program o,o
mot contemplate passage OF the Dill Dc
fore the end Of October.
Mr.. McAdoo emphasized his state
,1nent in a telegram to Chairman Kttehin
from Chicago that there should be Q war
profits tax at flat rate Of 50 per cent
tand that the excess profits tax shouio
mot be depended upon to produce IN
creased revenue. but that notifications
are desirable to reduce the inequalities
Of the present law
In framing the excess profits tax
Mr.. McAdoo said that should 1t be de-
,cided to modify the existing schedule
changes in rates should DO made with a
sylew. to producing the same amount OF
revenue as during the past year. ana
lin a way more equal and less fraught
with hardship to, small business con-
Germs.
The drafting Of a measure designated
70 raise $4,000, o00. 900 in revenue is q
great burden. and inequalities are GER
tain to result. he said. for that reason
he told the committee it was advisable
TO confer authority to e0ualize taxation
npon the commissioner Of Internal rev
enue acting with q board Of advisers
subject to the approval Of the secretary
OF the treasury. The committee has
provided in the bill as tentatively agreed
upon for an advisory board. members OF
which are 70 be nominal rby. the presi'
dent and confirmed by the Senate.
Emphasizing that no tax should be
placed on the income derived from gov
eminent bonds as . means Of making
more poplar the government war secuT
titles, as set forth in his letter TO Chair
man Kitchin June ). Mr.. Mc!tdoo said:
IT cannot protitabiy enlarge upon wha'
thus wrote more than two months ago
except to say that the failure TO con-
1inue what is. in effect. a II per cent
tax upon normal earned incomes and the
failure TO enact a dfferential of say {
Der cent against unearncd incomes
making the tax on the latter Is. Will II
fs estimated by the treasury depart
nent, deprive US OF revenue TO the
amount OF s145. hnn.0Do. while at the
same time seriously jeopardizing the
~roSram for tho issue Of Liberty Bond:
Of the Fourth Liberty Loan at AZ pei
cent by reducing the value Of the ex
-ernption OF the holders OF those bond:
nom normal income taxes by an amoun