The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-06-05
McAdoO's Idea Is Likely to
Be Accepted by Ways and
Means Committee
SOME FAVORABLE
TO A HIGHER RATE
Proposal to Liberalize the Next Lib
erty Loan Representative Fordney,
Republican, Argues for Increasing
the Tax on Imports.

WASHINGTON, June 5.-Secretary
the WAYS and means committee his idea
of the desirability of increasing the nor
NAL corporation and income taxes in
order to raise the additional revenue to
be obtained through the war revenue
bill about to be framed. The normal
corporation tax is now 6 per cent, while
the normal income tax is by cumula-
tion practically 4 per cent. Treasury
officials are advising that both taxes
be increased to II per cent, while the
redical members of the committee fav-
or placing the taxes on a parity with
those taxes in England, which range
around % per cent.
| Indications are that the principle in
volved in the views of Secretary Me-
! Adoo will be accepted and that the
normal tax rate will be doubled at
least, with increases in the surfaces
The surtaxes cannot be Increased be-
yond certain point, for, as Represent
alive Kitchin explained, "they will &c
beyond 100 per cent, and the govern
ment will have to pay back some Of the
taxes levied
There was some talk among members
of the committee that the next Liberty
loan will be made very favorable, 81
as to influence people TO buy literally
while paying increased taxes at thu
same time. The thought was that thu
rate would be fixed at 4 IA per cen
and the bonds be non-taxable, but no
convertible into any subsequent loan
This course, they said, might be neees
sary in order to influence the wealth,
to buy further, as without such 1ad
vantages they might not be disposed t
place their money in taxable securities
Outlining a possible Republican atti
tude in revenue legislation, Representa-
| tive Joseph w. Fordney, ranking Re
publican member of the. ways an
means, committee, made q. speech, insth
house urging increased taxes i'm
1 Iports. lie declared that the Unite
l States was raising more revenue by di
| rect taxation than any other nation i
/ the world Great Britain, he said ha
i raised ESQ per cent through direct ia,
Il alton; Canada, 1875 per cent; Franc,
II IL per cent and Italy Q per cent. TIL
II United States is now raising through d
II rect taxation, he said, 81 per cen
Il and il is proposed to increase this /,
II 40 per cent. Z.
II cit is common rule and a commo
II practice of every country in the worI
II that during a time of war some of II
II money raised to carry on war has bee
II raised from increased import duties,
y said Mr. Fordney. al want to call yol
lattention TO our situation here. Und
the existing law last year our adj VI
loren rates were 8 per cent, gettii
mighty close to free trade The Pay
tariff law in the last year of it's oper
tion yielded 1893 900, 900 in revenue {
} imports of $l,sl2 100000. Taking ;
r average of the first nine months of tn
fiscal year. and for the months of Apr
May and June this year, which won
complete the fiscal year, the avera
rate is 6.06 per cent under the Undt
p wood tariff law, which would yield (
the twelve months 10000 900 on il
port values Of SO, 800 100000 In 9th
words $l65, 100000 less will be collect
on imports this year under the Und,
wood tariff law than was collected II
der the Payne tariff law, with an
crease of 81 ,000,000,000 of imports.
1.-The time has come, if we must ra
more revenue to help carry on this WI
when we should raise portion of
from our import taxes.
"tfnder the present conditions, wi
an embargo, where YOU have to have
license to import and export, does I
the gentleman think that it would
far fetched to talk about levying a
kind of duty at the custom house
ask ed Renresent tive Garner Dpmncr