The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-31

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method. The treasury department is
given the discretion of collecting
under the form Of taxation yielding
the larger return
Secretary McAdoo held "A final cor~
ference with four members of the
committee. including c h a r m a
Kitchin, Just before the committee
voted to approve the rates which IL
had written into the bill AL thus
conference Secretary McAdoo again
urged that the recommendations OF
the department in the matter or IN
come and excess profits rates should
be followed. but the committee re-
fused to change the rates agreed upon.
Those who attended the conference,
In addition to Secretary McAdoo and
Mr.. kitchin were Representatives
Garner. of Texas, Fordney. Of Michi-
gan, and Longworth. Of Ohio; Assls-
fant Secretary Letfingwell. DR.. T 5,
Adams, chairman Of the treasury
excess profits board. and Assistant
Cookaey. OF the treasury department
Harmonious Conference.
MIR. Kitchin said the conference was
ssuogt pleasant harmonious and salts
factory"
4.Secretary McAdoo and the assis-
tants OF the treasury department ap~
prove Of the bin as a whole" Nr.
KHchin added, but some of the rates
are still regarded as too high by Mr.
a McA doc. For instance. he considers
the rate OF IS per cent corporate in
{ come tax with the abatement TO IL
per cent on the amount of distributed
earnings To be too high, and that the
excess profits and individual income
rates are somewhat excessive"
The effect of the senate prohibition
amendment VIII not be felt during the
fiscal year which ends June so. on
the other hand the bill probably will
not become law until November
OF this year, and for the twelve month
period ending November /. 1919, there
will be a loss of revenue for the
months of July. August, September
and October of approximately $3.50,
100000 1t is estimated that the
new rates on alcoholic and malt
beverages in the bill VIII yield a total
of S1.1o0. 600, 600.
In a formal statement issued at the
conclusion of the committees work
Mr.. kitchin said
Practically Completed.
I'VE have practically finished the
bill except the final reading for cor
rection and textual changes The
treasury department and the commit
tee have gotten together absolutely
and satisfactorily on X normal tax OK
incomes which will be II per cent
y and per cent on incomes below
$4,000 year down TO the cSem ptton
limit BY reason of the split norma
rate and the many differences and
com piexit.es IN administering the diff
fArential earned and uneared income
tax plan, and the many questions that
would arise under an unearned and
earned income tax plan, all agreed
that It is wiser 10 make no dlfferentlaL
The surtaxes viii be adjusted cor
respondingIy WITH this l . per cent Nat
normal tax rate All the surtaxes will
be correspondingly reduced because
Of the change In the normal The
higher brackets which VIII be SUBJ
stantsal>y reduced are the incomes be-
tween $20G, 600 and $500 600. those
between s300,o00 and 100000 be-
tween $500, Gao and 81, 000 600 and be-
tween 81 o00 eco and 100000 and
over.
The maximum surtax Of IS per
cent corn pares with the maximum
surtax Of 6S per cent under existing
law Tor 81 per cent with the present
normal rate of per cent?, making
the maximum now agreed 10 IT per
cent. as against G..
This plan AZ agreed To will pro-
duce Substantially the same revenue
ais under the ! @ per cent normal tax
4 plan heretofore planned by the COM
rnittee In other words. with d IL
per cent normal fiat TAX and the sur
taxes changed from the rates hereto
fore tentatively Ia the bill, the new
plan will produce practically the same
income as 10 per cent would have
II WITH the higher surfaces"