Evening journal., 1918-08-09
War PROFIT TAX AT
LEAST 50 PER CENT.
Committee Sticks to De.
cision to Increase Levy
on Excess Gains
TREASURY TO SELECT
WHICHEVER is HIGHER

WASHINGTON. Aug. 9-The Way:
and Means Committee OF the House
which is writing the new 5000. 100000
war revenue bill, decided to adhere 70
rts decision 10 increase the excess
profits tax and TO adopt as an alter
native straight so per cent tax on
all war PROFITS.
Chairman Kitchln announced that to-
day, after the committee had consld-
cred the message from Secretary OF the
Treasury McAdoo urging excess profits
taxes be left where they are and that
the war profits tex be adopted.
Il received the telegram from Mr..
AlcAdoo on Monday" said Representa-
tive Kitchin, and with the exception
Of letting the existing rates on excess.
prol,rs remain where they are, | agree
with him. In fact, the committee, at
least ten days before we received the
felseram on motion Of Judge Crisp, de-
cided to adopt war profits tax as an
alternative and that the Treasury De-
partment should select whichever tax
would be the higher.
eve did not make the decision public |
at that time for the reason we were |
trying to work out some inequalities In
the system and to Tx a proper rela-
lion between the excess profits and war
profits methods.
u have no doubt the Secretary Of
the Treasury, the Treasury Department
and the committee Will work out an
equitable way in which 20 adjust the
proper relations between the excess
profits and war profits taxes when Mr.
McAdoo returns TO Washington"
Mr.. KItchin declared the committee
would continue 10 adhere 20 its plan (
for increased excess profts taxes. but !
the schedule might be made '
lower &
The committee today adopted a new
for the excise tax on the use {
Df automobiles. including motortrucks, r
In place Of the schedule based on the q
original selling price that previously 4
vas adopted. Q
The new schedule Is based on the 4
horsepower. and is considerably lower b
han the first auto license tax adopted q
" the committee. The new schedule G
ollows:
Automobiles OF % horsepower or less, I
10; 2i to 80 horsepower, $40; 81 10 40 h
$50; more than 40 horse Z,
over, $50. That Is a trifle lower than n
he schedule suggested by the Treas
ny Department. s.
The committee also decided TO double Il
he present tax on tobacco, cigars and q
i2arettes, instead OF the schedule for :
restly increased taxes on tobacco :
ldcpted by the committee last week.
\ tax OF 80 per cent. on all leased /,
wires and telephone exchange systems ,
n4 no for hEr ha NJ ~
by the message was decided upon. The ,
tax would be 40 per cent Of the amount :
paid annually for the use Of the wires
Freight transported within the United
Siites that originated in foreign coun-
tries. will be taxed per cent the
same as freight originating in this coun-
Try. the committee decided.
Jlle tax on the transportation Of oil
" pine lines was increased today from
te 635 per cent.
The tax on Insurance was left vir-
lally where 1t Is now. Life Insurance
Ill be taxed the present rate, eight y
'nts on 500 but provision Is made
r group insurance, the groups not TO
ceed twenty-five employees. The tax
group Insurance was fixed at four OF
nts on Si00. hs
Policies for life insurance not in ex- sn sn
IS OF $500 Issued on the individual or ie
,ekly or monthly payment plan will a.,
taxed 40 per cent. Of the first weekly an,
monthly premium. ca, @
The tax on marine. inland, fire and -,
sualty Insurance will remain as Il IS no
W. per cent. on each 81 Of the pre- an
um charge. so.
The committee also decided to levy n