The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-06-07
Equitable Rate on Earned as
Well as Unearned Revenue
Is Now Urged
WOULD WIPE OUT.
PRESENT INEQUITY
Luxuries, to Bear Important Part of the
Staggering War Burden McAdoo Be
ieves Plan Would Enforce Necessary
= Qoyfnu -

neves Plan Would Enforce Necessary
Saving.
WASHINGTON, June IA normal
income tax of II per cent, falling upon
everybody earning more than $4,000
a year, and higher rate even
than this on all unearned incomes, is one
of the outstanding features of sugges-
lions for the new revenue bill made to
Representative Kitchin, chairman of
the house ways and means committee,
by Secretary McAdoo. Mr.. McAdoo
would wipe out the present inequity in
taxes in the eases Of the person who
| works for living and the person whose
income is derived from investments.
| He would make the s per cent tax now
levied on salaries over $4,000 an income
| tax rather than a socalled excess prof
its tax, and would make the future rate
| II per cent, which is the sum of the
present normal rate of per cent and
the 5 per cent excess profits tax.
| An increase on the normal income tax
on those earning from $1,000 to $4,000
a year is recommended. but no rate
is suggested. as1
| Doubling of all taxes to raise S. ,000,-
100000 a year in cash from the people
is recommended by the secretary He
would levy "real war profits tax, >
/ superimposed upon excess profits taxes,
and place heavy fax upon Injuries.
The secretary suggests that less OPP
| position will be met on the normal tax
| as it applies to everybody and he holds
the view that such a tax falling on all
the people would enforce the saving
| that is necessary to prevent imitation
during the war. His taxing program is
1 not only aimed to raise twice as much
as is coming in from taxes, but to sta
| Billie Liberty bonds and make them an
attractive investment with a return
equivalent to that of the best paying
corporation or municipal issues.
Expenditures during the fiscal wear
starting July |, the secretary says will
aggregate $24 100000 900, almost twice
/ those of the present year. This esti-
mate, he points out, is based on the ex-
penditnre. rate and not on appropria
! tons or departmental estimates that
may not be met. To meet this expendi
ture he proposes that $4,000, 100000 be
raised in taxes and the balance, SIC,
000,000000, through the sale of bonds
The secretary pays particular atten
tion to war profits and to unearned in
comes. He makes it plain that in hi,
judgment both are escaping too light
" under the existing tax laws. The sci
fish people, he says, who are reapins
large profits are investing them in cor
porate issues and other ventures and ar,
not supporting the government in bone
buying The patriotic carry their bur
! dens. The secretary would put a ia,
t upon their unearned incomes, the in
3 comes they receive from investment
E that would stop this form of profteer
ing and make the selling of bonds mucl
: easier.
notwithstanding this, if the secre
tary s suggestions are met, the ia,
burden will fall most heavily upon tn
e average citizen and the average eitizel
n of America will pay in far the large
= share of the tax bill. The man earnin
from $1,000 to $4,000 a year will pa.
IL per cent, the married men getting
81, 900 exemption.