Arizona republican., 1918-08-08
SECRETARY M 'ADO0 FAvORS EIGHTY PER
 CENT PROFITS TAX
Republican A. p. Leased Wlre1

CHICAGO, Aug. 7.-William G. Me Adoo, secretary of the treasury, to- night declared himself unreservedly in favor of a flat war profits tax of 80 per cent. "The adoption of an so per cent war profits tax should render un- necessary, and I believe undesirable, any increase in the existing excess profits tax rate" he declared.
 In presenting his views on tax measures now before congress, Secre- tary McAdoo addressed the following | telegram to Claude Kitchin, chairman of the ways and means committee of teh house:
 His Views In Detail l Roper has advised me of his talk with you. I greatly appreciate assur- ance you gave him of your desire to meet as far as possible the views of | the treasury I should be very sorry to have progress on the revenue bill delayed for conferences concerning war profits tax as 1 understand you suggest. This is a matter which has engaged my earnest thought and in
 
 without delay. I take the liberty o1 telegraphing to confirm and reindorse the program outlined m my letter tC you of June 5 and to express the con- viction that that program is sound anC reasonable.
 Regards Tax Indispensable
 T earnestly hope that it may com mend itself to you and the committee I regard the war profits tax as ar integral and indispensable part of that program. As a result of the further consideration of the subject which has been given since I wrote you, 1 an confirmed in my opinion that a fla war profits tax of 80 per cent should be imposed. Of course. ample safe guards should be provided agains hardships in extraordinary cases in th application of such a rate. The adop tion of an 80 per cent war profits ta1 should render unnecessary and l be lieve, undesirable any increase in tn existing excess profits tax rate. Way to Reach Profiteers
 Tt is my strong conviction that tn
 taxation of genuine war profits is tn only way to reach real war profiteer ing and that it is at the same time , thoroughly justifiable measure upol
 
 and indispensable producer of a larg
 part of the required revenue. ''The patriotic producers of Americ should be content if one-fifth of thei
 war profits are secured to them, eS . pecially when we reflect that the me who are fighting and dying in Franc , to save the liberties of those who sta . at home and make it possible for ther to continue in business are limited b . act of congress to s396 per year fo 2 their services and have to give thel . blood in the bargain. 4 = Wants Amendments Adopted . Should we be more partial and ten . der to those who are protected i ', safety at home than we are to thos who make the supreme sacrifices fo :, us on the field of battle? I sincerel {, trust also that amendments which ez perience has shown to be desirable,
 not essential to the provisions affect !, ing the determination of excess profit = taxes may be adopted"
 Secretary McAdoo also announce . that the next liberty loan and an others that may follow, will be on . Az per cent basis.
 2 No Increase In Interest !. "The public should realize" he sal U "that if the rate were raised the . would simply be hanging themselvt
 by their own bootstraps.' The situs
 tion must be kept sound by stabilizir
 the rate of A per cent interest. It
 to the interest of the people, the banl
 CT, and the business man, because
 the government raises its bid f.
 money, then all industry will have n pay proportionately more for ne 4 capital"