New-York tribune., 1918-08-18
House Committee Fixes
Schedules to Raise Eight
Billions for u. S.
Prohibition To Be
Cause Of Increase
Bill Prepared for Action
With Income Revenue
Left at Old Figures

revenue bill, upon which the House
Ways and Means Committee has been
working since Congress recessed early
in July, will raise total Of SS,oo0,-
100000 for the expenses Of the govern
ment in the present fiscal year, Chair
man Kitchin of the committee an
nounced to-day, when the committee
adjourned its sessions until Monday.
II Is probable, Chairman Kitchin said.
that the bill will be introduced next
week and be taken up by the House
for consideration a week from Monday.
The announcement that the revenue
20 be obtained under the bill will reach
the goal set by the Treasury Depart
ment was made by Mr.. Kitchin after
he had consulted the committees ac-
countnnt- Changes in the schedules
not a. yet definitely fixed may lower
the total, it was said, and in that event
the committee may have to resort to
. customs tax and floor tax ON tea,
coffee and similar productA
Watch Dry" Bill
Changing conditions also may affect
the amount Of revenue to be obtained.
The committee is watching the outcome
of the effort to pass q national war
time prohibition measure, which tho
Senate is to take up on August "a. If
q prohibition measure is enected reve-
nues to be obtained under the bin will
be decreased considerably.
The new tax on liquors may not be
announced until the bill is reported to
the House, but it is understood to pro-
vide q substantial increase on whiskey
and other liquors and soft drinks, a
total revenue. of s1,ooo,ooo, 900 or more.
The liquor tax rates arc being with
held from publication to guard against
Withdrawals Of whiskey from bond.
Tho committee to-day finally ap-
proved the tobacco schedule, unchanged
from rates heretofore announced.
Small Motor Boats Exempted
In the 10 per cent tax Of articles
deemed Injuries above a certain price
it made the tax apply to women's
waists In excess Of SIS instead Of $40,
as previously agreed to, and to women's
hats at SIS instead Of SIS. Motor boats
and canoes were added to the 10 per
cent tax on yachts and pleasure boats.
Motor boats and canoes costing 500 or
less we're exempted, the exemption
tN hop kVx,
Considerable interest has been mani
Tested In the normal tax on personal
incomes, and tho committee announced
the text Of the schedule, as follows:
"Normal Taxes, Section 210--That
there shall be levied, collected and
paid for each net income Of every IN
dividual normal tax, as follows:
"(A) In the case of q citizen or
resident Of the United States. 10 per
cent Of the amount Of the net income
IN excess Of the credits provided in
Section ZIG, provided that upon the
first $4,000 of this amount the rate
shall be per centum.
"(B) In the case of nonresident
alien, 10 per cent of the amount Of
tho net income In excess Of the
credits provided In Section 2l6."
Section 2le. as agreed to, roads,
"Credits Allowed-For purposes Of
normal tax only there shall be al
lowed the following credits;
"(A) The amount received as divi-
dends from q corporation which Is
taxable under the corporation income
tax upon Its net income.
"(B) Amount received as interest
upon obligations Of the United States,
any state, territory, or political SUBJ
division, or the District Of Columbia.
"(C) In the case of single per-
son . personal exemption Of $1,000,
or In the case Of the head Of fam
lily or q married person. living with
husband or wife, a personal exemp-
ton Of $4,000. A husband and wife
living together shall receive but one
personal exemption Of 1000 against
their aggregate net income, and in
case they make separate neturns the
personal exemption Of $4,000 may ba
taxed by either or divided betwe.n
them.
"(D) Two hundred dollars for each
person (other than husband and
wife) depending upon and receiving
his chief support from the taxpayer.
II such dependent person Is under
eighteen years Of age or Is incapable
OF self-support because mentally or
physically defective"
To Redraft C1xuse
The committee has agreed by a very
close vote to a diFerential of 9 per
cent against unearned incomes, and has
sent back to the Treasury the latter's
draft for this purpose for redraftine.
with the probability it may be dropped
on reconsideration. II the difYerentiaI
stays In the bill, the present s per cent
normal tax on incomes under $4,000
annually might be made 8 per cent on
onsarned incomes and 4 per cent on
earned incomes, and the normal tax
OF ~ per cent on incomes from $4,000
upward might be made 10 per cent on
unearncd and per cent, or the present
~ per cent On earned incomes, a COM
nnittec member to-day explained.
Chairman Kitchip erpIainad %hs+ a.