Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-09-03
NEW REVENUE BILL
WILL Be REPORTED
TO HOUSE TODAY
Measure Designed to Raise
$8,000,000,00 Completed
by Kitchin Committee.
4 CHAIRMAN C WILL ASK THAT
e IT BE TAKEN UP FRIDAY
Indications Point to Adjournment
Of Congress Until After
3 November Elections.
/ McADOO MAKES LAST PROTES Z
NicADoo MAKES LAST PROTEST.
DIR. Adams, OF Treasury Department.
2 Speaks Against Rates on Incomes
Of Corporations, Without Avail.

"AStTNGION, september 2.-Thc
CENTRE text OF the $4,000. 100000 revenue
bill to raise money for carrying on
tho war was approved by the Ways
+ and Means Committee to-day. and the
s bill will GO TO the House tomorrow.
Chairman Kitchin will ask TO have the
bill taken up Friday mornlns. and his
present plan Is to ask for final vote
on Saturday OF next week.
As soon az the bill is passed by
the House. members OF both sides will
ask Congress to adjourn until after
the November elections. leaving the
Senate Committee 1T s, on Finance to hold
in December. ~ "O'''' '''''
sible to comply with the request made
by Secretary McAdoo that the bill
Signed Signed by p the presidena re- dent he1sf befsre the the
drive, September IS. Even should Con
likely that the. bill could become a
law until the middle OF November. For
portant measures on it's calendar. is
ready to adjourn. so that members
sg lepate 'n5" in the TO eissons sST homes and par
discussed a, he 90" nee ,nefiiins to; 70,
been finished. and nombers generally
agreed that ther" IS no reason why
y 1t is Understood that Chairman Kitchin
Will confer with Senator simmons,
shaman snd senntop of !n ead
get the Senate to agree TO an adjourn
House. In all probability. will discon-
tinuo it's sessions under gentlemcn's
aSMMrTrEE sneit REroRr !o1s ~ EXHTHiSs nS
ALI. FEATURES OF NEW TAXES
The commi,teu report on the bill.
which is unanimous. explains all tho
Will be submitted TO the House. along
with the bill by Chairman kitchin. In
the report the committee undertakes
10 explain certain rates. which are at
variance with the recommendations
made by Secretary McAdoo. particular
iy the corporation income rate and the
excess prof1ts rate.
The committee had before it to-day
Dr. Adams OF the Treasury Depart
in
OF lS and IL per cen, on the income
Of corporations The committee de-
stand in the bill. The normal rate will
be Is per cent. with the proviso that
on the amount OF income distributed
per cent differen,iai will apply and the
rate will be only IL per cent.
An amendment adopted to-day pro-
apply also on the amount expended for
the payment Of corporations jndebt-
edness.
Tho supertaxes on large incomes also
were finally approved at to-day's ses-
sion
DIFFERENT METHODS OF
CALCULATING INCOME TAX
The committee vas advised to-day by
latinE the income tax which has been
followed by tho committee is wrong,
and that it should be done by diner
emit method. For example, in the case
of married man with an income of
$1,000. tho committee in applying the 6
per cent normal rate to the fi.st $4,000
allowed on account of marriage from
this nrst $4,000, SO that the 6 per cent
rate rate vas as applied app to s2,ooe; then there
$4,000 more to which the IL per cent
rate could be applied add to this the
per cent supertax on $1,000. being
the amount In excess of $1,000 and the
total tax to be collected would be $3.50
Tho Treasury method is to make the
leaving the taxable income only $4,000
This would be subject only TO the s
per cent normal tax and the supertax
@ OF per cent on $1,000. and the total
by the other method.
The Treasury insists that it's method
OF calculating the tax is right. and that
the committee is wrong. The result
will be loss in revenue collected from
all incomes above $4,000. Thus. an
treasury plans, and $165 under ID s' the rule He
formerly adopted by the committee: a
$4,000 income under the Treasury plan
would pay sSi5. while the committee
method would yield 1856. The same
rule would apply to all the larger in
comes.
The committee yielded to the Treas
ury and wrote into the bill a clause
providing for the tax to he worked out
according to the Treasury plan
HEAVY TAHES AND sURTAXEs
LEVIED ON LARGE INCOMES
The rCnOrt said ba Il;
on al citizens or residents of the
United States normal tax Of ~ per
cent upon the amount OF income in ex-
cess or exemptions except that on the
first $4,000 OF the taxable amount the
rate rate shall be per cent The measure
the line. The advance by grades COM
pared with the percentage under ex-
isting law are: $1,000 to $500 incomes,
to 1885, from per cent cent
TO sl25oo, from 8 to per cent: si2.5oO
TO $4,000. 4 to Z: $4,000 to SEQ, 900.
sto 10: $4,000 to $4,000, 8 to Is;
$4,000. II TO ga; $4,000 to 100000, IL
ooS ooS to $4,000. IL II to 42; $4,000 to 500
g; 100000 to sI5o.0oo, Il to so: $50,
ene eo to to- $500, 900. 31 to so: 100000 to
AZ to 55. ''''o0''
on incomes OF over $5.00O,O00 the in
crease Is only from 63 per cent under
the present bill to 65 per cent While
under existing law only prcsons OF
new bill requires persons under the
lawful age and having a net income
for the taxable year OF $1,000 or over.
.if single, or IL married and not living
with hu9hand and wife. and all mar
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