The states-graphic. (Brownsville, Tenn.) 1???-1984, 1918-08-16
HORSEPOWER TAX
ON AUTO OWNERS
Ten Per Cent on Amount Paid for Leas
ed Wires is Levied: Tobacco Tax to
be Doubled in Measure.


per cent on amounts paid for leased
telephone and telegraph lines, inelud-
irg press associations and brokerage
circuits, horsepower tax on automo-
bile owners and doubling of the to-
bacco taxes of the present law, in
stead Of higher range rates previous
ly agreed upon, were written into the
SS,000,000,000 revenue bill yesterday
by the house ways and means commit
tee.
Chairman Kitchin, in e statement to-
night, replied to the telegram Of Sec
rotary McAdoo, favoring retention of
the present excess profits law, and a
fat so per cent war profits tax as an
alternative, according to the greater
revenue likely to be raised in each cor
poration's case, Mr.. Kitchens state
ment indicated that the committee will
retain in substance the dual or alter
native system it agreed upon, but win
insist that the excess profits tax, in
stead of remaining at the present
rates, shall be increased, either as the
committee has agreed on them, or by
some compromise adjustment.
Il received Secretary McAdoo's |
telegram August s." said Mr.. Kitchip,
"and, with the exception of the re-
tanning of the rates on excess profits
in the existing law, l agree, and l
think the committee does. The ways
and means committee, ten days before
the telegram was received, determin-
ed, on motion of Representative Crisp
of Georgia, to have war profits tax,
the treasury to select which ever tax
shall raise the higher revenue. | did
not give this action to the press be-
cause we were trying to work out the
inequalities involved in the alterna-
tive system and to fix a proper rela-
ton between the excess profits ana
war profits tax methods.
II have no doubt the secretary of
the treasury, the treasury department
and the ways and means committee
will work out an equitable way IN
which to equalize these relations and
adjust them. The committee is thor
oughly convinced that, with the al
tentative war profits tax, the excess
profits tax rates in the present law are
too low / think the committee is
unanimously of that opinion. With
the excess profits rates tentatively
agreed to by the committee, and the
alternative war profits plan, we will
catch everybody"
Mr.. Kitehin's resume of today's
work follows:
The committee agreed to put tax
~ CO. on flsigbt gOrtsa
ton within the United States, origihat Z
ing in foreign country, to apply on
that par of the shipment within the
United States.
"We increased the tax on Transport
tation of oil by pipe line from 5 to
s IL per cent.
"A tax of ten per cent on the
amount paid for leased lines and talk
ing circuits was agreed to. That in
cIudes telephones. There is no tax
now on these leased lines. | have no
estimate of the amount of revenue ,
from this source. The tax will be paid :
by the lessees.
ION motion picture films we agreed :
upon a new tax of per cent on the !,
rentals received by the producer. .
The committee reconsidered the
on tobacco and in substance .
agreed to double all the present law !
rates on cigars, cigarettes and tobac- :
%, Heretofore the committee tenta- \
,lvc'y proDt sed rates that in sorna cas-
- trebled the present law rates. The :.
committee now has agreed to double, N
md believe that it will obtain as much
'evenue thereby.
"The committee considered the tax
m users of automobiles, and levied a Il
ak on the basis of horsepower, as fol- h,
ows: =
twenty-five h7aer;w,r or less, y,
10; rs to 30 horsepower, $40; 81 to Il Il
Q horsepower, $50; more than 40 =,
horsepower, $50. This includes trucks II
S well as passenger vehicles" ,,
Mr.. Kitchin said the committee had !
inally decided to allow payment of =,
ncome taxes in three installments, "
With a discount of 10 per cent if ~
Il the tax is paid when due ..
MORAL AND q
PHYSICAL MANHOOD. =,