The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-16
EXCESS PROFITS
BOTHER COMMITTEE
Members Determined ITO Raise
Present Rate, Though
McAdoo Protests.
BILL NOT YET READY
Democrats and Republicans
Disagree on Method of
Raising Revenue
Through Tariff.

Washington. Aug. 1s.--Notwith-
standing Secretary McAdoo's urgent
plea to the ways and means committee
! to accept the treasury department
scale of rates for the war profits and
excess profits taxes In the revenue
ihnl the close of today's session found
the committee and the treasury ON
| Gals as far from agreement as before.
/ 1t was firmly stated by members OF
/ the committee, that II will not agree
| to allow the excess profits rates re-
main the same as they are in the pres
ent law. These rates. ii was stated.
will be very materially increased, and
II this In the very thing to which Secre-
tary McAdoo is SO strongly opposed.
| Moreover. the disagreement will
make it impossible to have the bill
reported to the house next Monday, as
had been planned. Chairman kitchin
announced. that because OF the
wrangle over these rates, he will be
unable to introduce the bill before the
following Monday. August IS.
|. This will postpone final action on
the bill. which Secretary McAdoo in
sists must hecome a law before the
opening of the next liberty loan cam
paign on September IS. otherwise the
loan campaign will suffer to the ex-
tent of 81 600. o0S, 900.
The committee spent the entire day
in conference with treasury experts.
who urged that the excess profits rates
should be the came ~ I'm existing law
ard that the war profits tax be hxed
at so per cent. DIR. r. S. Adams. one
OF the treasury experts. assured the
committee that If this suggestion were
adopted. the bill win produce the re-
I rr.ri s-AS axsy zf q
Members of the committee and the
committees own expert disagreed with
him and declared that unless the ex-
cess profits rates are raised the total
will be fully $500, 900. 600 short of the
desired figure.
Chairman Kitchins announcement
of the committees action said:
The committee no doubt wifi report
bill that will have endorsement of
the treasury department. However.
the excess profits rates will be increas-
ed In the lower brackets. while prob
ably In the higher brackets there will
be little If any increase.
| The bill probably cannot be reported
before Monday. August 90. There
have been a great many suggestions
made by the treasury department
which the committee has to study and
! consider
| II is understood that among the sug-
Eestfons made to the committee. Is
one to compromise on the excess pro-
| fts rates by fixing then, at so. 40 and
1 10 per cent, instead OF 80. SO and sc
per cent. as proposed by the com.
nittee. The existing rates run from
20 to so per cent only.
| Internal Revenue Commissions r
Roper was before the committee this
morning with a request for an ap-
| preparation OF s25.o00.0 to admin
lister the new law. This Is $-.5oo,00
more than he is allowed by the pres
ent law. He explained to the COM
mfttee. that IL he could increase his
present force of Geld agents and &C
contants from 5000 to $4,000 he could
guarantee an increased return in taxes
paid into the treasury OF at least ST.
100000. This would be accomplished
by ferreting out and compelling pay.
4 A