The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-08
BEER BAN CUTS TAX
LEVY $24O,OOO,O0O
Continued from First Page.

catch" some corporations which would
pay less money than II the war profits
tax alone was in the money measure.
Mr.. Kltchin either had forgotten or did
not care to refer 10 the fact that the
Treasury Department had taken twenty
two of the largest corporations. those
which Mr.. Kitchin Is fearful the tax will
not Catch" and had worked out the
taxes they would pay under the two sys-
tents. In all cases except four the war
profits tax, II was shown at the time.
would be levied because II would raise
more revenue. and In the other four
cases It would impose a fair share OF
taxation.
Defends Is Fer Cent. Tax.
Mr.. Kitchin's explanation of his rea-
ons for backing the is per cent. tax on
indlstributed income OF corporations was
this:
1T will force the corporations to dis
tribute their earnings to the stockhold-
srs and the small stockholders will ben
eft. Another reason for putting the
llgher tax on undBtributed income "a
that In forcing the corporations to pay
out their earnings as dividends the Gov
eminent can collect the resulting super
taxes on personal incomes and that
much more revenue Ia provided
Mr.. Kitchin did got touch upon the
theory which has placed this tax under
the Administration ban-the fact that
the proper monetary reserves to conduct
business on a safe basis will be impossl-
BILE under the differential where the Is
per cent. tax applies to distributed earn
ings
He declared that the newspapers have
deliberately misrepresented the differ
ence OF opinion between the committee
and the Treasury Department He even
went so far as to forget that Mr.. Nc.
Adoo's own letters and kilograms and
his statement before the Ways and
Means Committee have become public
property, and that the Administrations
attitude toward the revenue bill In
IS present form is anything but the
fond paternal feeling evidenced by Mr.
Nitchn.
Members of the Ways and Means
Committee. even the Republicans, are
rather limited in their efforts. now that
the bill Is before the House, as they ali
signed the report. However. II Is Ger.
tain that some Republican members
once general debate is ended, will try 70
correct various absurd features of the
bill as II now stands.
Doubts Shoots Objections.
The recently published statemen,
made by Senator Smoot (UtsSD, In
which he pointed out the features OF the
bill most Objectionable to him--and his
objections were identical with those
made by the Treasury Department-was
called into question by Mr.. Kitchin.
Il canno\ give credence to such a re-
port" said he. "Such statemen,
could not come from a man worthy OF
seat in the United States Senate"
Representative Moore (Pa. called
Mr.. Kitch!n's attention to the rules OF
the Senate. but 1t did not help much.
II deny that he said II anywhere
Mr.. kitchin continued. Such state
ment could only come from a man think.
ing OK political spoils. 1t is unfair at a
time like this, when the nations affairs
are at such a crisis. to Impute such a
statement to a United States Senator"
1t was largely because the pation's az.
fairs are at such crisis That Senator
Smoot was impelled to make the state
ment. He believes, and said SO unre.
servedly, that the Kitchin tax theories
are very uhsound. and particularly