The sun., 1918-07-21
POOR MAN ALSO TO
BEAR SHARE IN WAR
House Committee Considers
Levying Consumption Tax
on Sugar and Coffee.
LESS FOR SMALLER PAID
Graduated Abatement Of 10
Per Cent. Assessment Up to
$4,000 Proposed.
LESS FOR SMALLER PAID
Special DespatcA 10 THE Sun.

WASHINGTON, July 1O.-The proposed
normal tax of at least 10 per cent. on
all personal incomes probably will not
be levied in full against the smaller in
comes. This developed to-day. follow
ing another session ~ the House Ways
and Means Committee.
An adaptation of the British system
=; permitting Attachments from the nor
NAL tax on smaller incomes was dis
Cussed and found strong favor with the
majority OF the committee. This would
rave the effect OF levying only per-
centage OF the tax on incomes up to
specified amounts The present rough
plan Is to write into the new law such
attachments from the normal tax that in
comes would not be taxed the full pro-
posed normal tax until they reached the
neighborhood of $4,000. From that
point on 1t is practically assured now
the full tax will be in effect.
Despite sentiment against lowering
the exemptions in the income tax pro-
visions OF the new law, most OF the COM
mittee felt that every one should be
called upon to some extent to contribute
something, even IL only few dollars n
year. to the support OF the Government.
AS about s5 per cent of the people OK the
country are not really affected by the
income taxes they will be reached
through consumption taxes. Coffee ard
sugar were most favored to-day as arti-
cies on which a consumption tax should
be levied.
Tax on sales Probable.
The committee, faced with the prob
ability that Il actually will be an impos-
sibility TO raise the desired $4,000, OOo,-
600 from income and excess profits
taxes. Is almost certain to levy a per-
centage tax on gross sales or gross re-
ceipts. Levying per cent. or one-half
OF per cent. tax on gross receipts, it
is believed. would make up the de-
fciencies in the bill through the inability
20 collect the desired amount from taxes
on incomes. The percentage will be
fixed when some more accurate idea of
what total receipts of all business in the
United States would amount to has been
received.
The committee was still unable to be-
gin the actual drafting Of the new law,
as II Is without the figures on the total
taxed income for 1917 and the estimate
OF the taxable income for the calendar
year 1913. The committee also is having
prepared table OF comparisons de-
signed to show how much money can be
expected through graduated increase
IN the rates In the various brackets of
The existing supertaxes on income. Tn
I'll these data are before the committee
not word OF the bill actually can be
written.
Senators Less Radical.
The Senate Committee on Finance
views with some apprehension the re-
ported tendency OF the tax bill trainers
NJ the Ways and Means Committee and
de7recstes the tendency announced re-
Gently to boost rates on normal incomes
70 hitherto unsug sested heights. Also
'he vagrant reports of virtual eonscrip-
ton of the whole money earning power
ot the American people and of Ameri-
can industry and the building up Of a
tax bill mounting toward $4,000. 900 900,
which have leaked out OF executive ses-
sions of the committee have set the
Senators by the ears.
They say the House committee real
ICES that in the final analysis the Sem
ate will draft the bill ana there are not
to be discovered in the Senate more than
few members who will follow the
cad of the House in the campaign of
radical advances in present schedules
nd in the Incorporation OF new sched-
lles phich raporte