The Washington herald., 1918-07-18
REVENUE BILL
DRAFTING now
SET IN MOTION
Plans to Raise 8 Billions
Being Considered by
Committee.
TAX PLANS DISCUSSED
Proposed Assessment on
Servants and Jewelry
Criticized.


10000 revenue bin was commenced by
the Ways and Means committee yes
terday The committee met in execu-
tive session and went over the gem
eraI phrases OF the task of raising
the greatest amount of revenue the
country has been called upon to pro-
duce since the war began.
A skeleton draft of the bill, pre-
pared by Chairman Kitchin. was sub
mitted to the committee and consider
ed in detail. The committee found it.
self handicapped by the lack of def
mite information as to amounts which
may be raised from various sources.
Estimates of this kind are being pre-
pared by the Treasury Department,
but until they are received by the
COMMITTEES little progress can be made
in fixing the rates on any specific
article. For this reason the COM
mittee was compelled to adjourn until
tomorrow.
Constitutionality I'm Doubt.
At the outset of the committees
deliberations question arose as to the
constitutionality Of some of the taxes
already suggested by the Treasury
recommended by the department were
discussed at length and the right OF
Congress to levy such taxes. 1aitic-
ularly upon some Of the articles IN
the Treasury list. was debated freely.
Several members of the committee
expressed the belief that some of the
taxes proposed by the Treasury would
not be permissible under the Con-
stitution.
This argument was raised in respect
of the suggested tax on personal
servants. Members of the committee
declared this would be unconstitutional
because II would be a tax on human
beings. Others suggested il would be
a tax on labor and equally violative
Of constitutional provisions. The
hardship which would be imposed
upon servants retained largely
through sentiment and not because
of the actual value of their services
was another point raised.
II know a family which employees
a man who has been with the slLiiIy
for - years" said one member of the
committee He can not do anything
else except the small services he now
performs, yet under the PROPOSAL OF
the Treasury Department the family
would be taxed on his wages, which
are $40 a month. Many such servants
would undoubtedly be dismissed and
what would become of them? They
could not get employment anywhers
and the government would get no
revenue from the tax" 81"
The tax on servants was proposed
nonninally for the purpose of taxing
the employment of chauffeurs In pr
vate service, but-the discussion ~ the
H. q
Treasury Departments suggestions
were too broad
VIII Appoint sub-Committees.
Similar views were expressed by
members of the committee in dis
cussing other items on the Treasury
list. The recommendations for a
heavy tax on jewelry, on automo-
biles and gasoline were all dis
cussed.
At the next session of the COM
mittee Il is probable that sub-com-
mittees to work out the different
phases of the tax system will be ap-
pointed.
Chairman Kitchin stated again
Yesterday that the bill when COM
pIeted would be revision of all the
revenue bills now in effect The in
come tax section now covered by
two separate laws. viii be rewritten
into one complete measure. The
provisions of existing laws with re-
gard to taxes on liquor. excess pro-
fits and every other item Of the tax
laws will be similarly treated. The
tax laws win thus be simplified.
The committee gave a hearing to
two representatives of the War In
dustries Board, who cleared up mis-
understandpgs in the matter OF the
country's supply of platinum. Rep
resentatives Rainey of Illinois and
Longworth of Ohio. have charged
that jewellers had proiteered in the
sale of this metal and that made
ouate measures by the Wa Indus
tries Board had caused a shortage Of
the metal in the United States.
Platinum stocks ON Hand.
Leland L. Summers, member of
the board. and C. H Connor. CHIEF
of the boards platinum section. told
the committee there was an ample
supply of the metal in this country.
They said that 5000 ounces of plati-
mum were on deposit at the mint and
l.. 900 ounces were at the disposal Of
the government through commander
ing orders recently issued.
eve feel we win be able 10 meet all
requirements" afr. Connor said. '.and
there Il no occasion to be alarmed
about q shortase. We have met all
requirements OF the War Department
ana have surplus on hand"
The amount Of platinum required
for the manufacture OF points for
aercplane engines, Mr.. Connor said.
does not exceed 1000 ounces month.
He said platinum was not required
IN the manufacture Of explosives gem
orally, although some was used in
making black powder. Even T. y. T.
could be manufactured with a piati-
mum substitute. Mr.. connor told the
COMMITTEES.