The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-04
WORLD RECORD
TAX BILL FILED
Revenue Measure Calling for
S8,182,492, 600 Introduced
in the House.
PAYS THIRD OF WAR COST
Remainder Of Annual Expense
to Be Met From Sale of
Liberty Bonds.
PAYS THIRD OF WAR COST
SPECIAL Despotck 10 THE SCN.


WAsHINoToH. Sept. S.-The greatest
revenue bill In the history OF the world
one that will reach into every American
pocketbook. bullying or depleted, and take
part Of what is there to help win the
war--was introduced to-day in tho
House OF Representatives. The wealth
and industry OF America will pay out in
one year under the new taxes $s.1s2.-
$4,000.
The bill Is drawn In furtherance Of
the fiscal policy OF providing one-third
of the annual expense OF carrying on
the war from taxation and the other
two-thirds from the sale Of bonds. This
policy was adopted. II was explained to-
day in the report which accompanied the
measure. upon careful consideration Of
the effect OF the fiscal policy upon the
morale of the people. upon the imitation
of prices. upon production and with
reference to the relative ability of these
people to pay taxes now and after the
war"
Changes Expected in senate.
The bill will be taken up in the House
Friday. and 1t is hoped to pass 1t before
the end OF next week. II then goes to
the Senate Finance Committee. then to
the Senate. and the final step will be
the conference to adjust the differences
between the Senate and the House. II
is practically impossible to accomplish
all OF this before December.
In some features the bill does not
oil, ha via n
the Administra ration, which will now look
to the Senate for rectfication. Chief
among these is the excess profits alterna-
tive tax, which was opposed by the Ad-
ministration, but which was insisted
upon by Mr.. Ktchin and his associates.
There were indications to-day that
Mr.. MeAdoo will renew his appeal for
the complete excelsior of such tax in
favor of straight war profits tax, on
the ground that the excess profits sched-
ule Is unjust and calculated to disrupt
fundamental economic conditions. Also
its administration would double the
burden on the Treasury, as 1t would re-
quire two separate returns and two
separate audits to determine which was
the high tax.
There will be no recess OF either house
until the bill is passed.
Hope to Avoid Obstruction.
1t Is Senator Simmons hope that the
bill, a non-partisan war measure, can
be revised by the Senate with scientific
elaboration and careful consideration,
but with neither filibusters nor extended
debates to slow down the consideration.
One of the most important new fea-
lures Is the application OF the abate-
ment system to individual incomes. In
stead of having the full normal tax Of IL
per cent of the net income apply TO all
income above the exemptions permitted,
the bill has been so drawn that only half
$4,000 Of taxable income. The text of
this clause follows:
Section 210. That there shall be
levied, collected and paid for each tax
able year upon the net income OF every
individual a normal tax as follows.
"(a) In the case of citizen or resi-
dent of the United States 12 per centum
of the amount of the net income in ex-
cess OF the credits provided In section
216; provided that upon the first $4,000
OF this amount the rate shall be per
centum.
OBJ In the case OF a nonresident
alien 12 per centum OF the amount OF
the net income in excess OF the credit
provided in section 2l6."
Saves 1920 for $1,000 Incomes.
The first title of the bill Is given
entirely to definitions. Title II. covers