The sun., 1918-08-04
2KINDS OF LUXURY
TAXES TO Be PAID
Many High Price Necessaries
I Must Help Bear Burden
- of Wars Cost.
WILL FIX COST SCHEDULE
President Urges Assessment
on PrOfiteers to Get Eight
Billion Revenue.
Special Dkspdtch TO THE SrN.

WASHINGTON, Aug 3.--Facing a def
cit Of more than $1,000, 600, 900, the spe-
cial subcommittee OF the Ways and
Means Committee tried to-day TO wind
up its task Of figuring how that amount
could be found in so-called luxury taxes.
It. failed. The subcommittee, which Is
to recommend the schedule OF taxes to
the full committee, decided. however.
upon the general policy to be pursued.
The policy will be to divide the luxury
taxes into two classes. articles which
are Injuries and articles for which UNI
necessarily high prices are paid
The first class will include such things
as jewelry. On this class a tax will be
n fiat percentage of the entire retail
price paid for them.
The second class will be a very broad
one, including such articles AS mems
and womens clothing, women's hats and
scores OF other articles of various kinds
which are necessities of life. In this
class prices will be set, and at or be-
low the price fixed no tax will be inn
posed when the articles are purchased.
the. tax will be a percentage of all the
money paid for articles in this Est In
excess of the price designated by the
committee.
Dtsrcgards Treasury List.
The subcommittee had before II the
list of regula tons and rates of taxation
sent by the Treasury Department but
81 was plainly ntimated that 1t Intended
10 go beyond this list in the number of
things 10 he taxed. and also to reduce
the Treasury rates considerably. For
example, the Treasury suggested 'plac-
ing tax on mems clothing costing
ha mi hn =
placed this figure at $40.
The work of the subcommittee was
somewhat hampered through lack of in
formation on exactly how much is needed
from the luxury taxes. and also because
1t Is branching into an entirely new field
in taxation in many cases. 1t Is still
trying to get an idea what various sug-
gested taxes would return to the Treas
ury, Men familiar with the entire BUSH
ness OF local department stores tried to
help the committee, and did furnish them
with valuable information on some
points.
VIII Meet Again Monday.
The full committee did not meet to-
day having adjourned until Monday.
When the luxury taxes are finally recon-
mended by the subcommittee and acted
upon by the Ways and Means Committee
the first tentative draft Of the new reve-
nue- law will be about completed.
The personal income tax abate ment
is the only subject the committee has
passed over without even a tentative
agreement on rate or combination Of
rates.
An effort to reach some sort of agree
ment on this phase Of the new tax law
probably will be made WI lie the sub
committee is still at work on the luxury
tax schedule.
FWAsHINGToN. Aug. 3.--President Will
son has let II be known to members Of
the House Ways and Means Committee.
which Is framing the new eight billion
dollar revenue bill. that he is interested
in heavy tax on war profits. The
President has given careful study to the
present tax system and also to the Eng
lish' system, which imposes a flat Tax
OF so per cent on such profits.
In his address to Congress in May the
President said there was indisputable
evidence of war profiteering and that 1t
must be reached by the new revenue
bill
"Profiteering that cannot be got at by
restraints of conscience" said the Presi-
dent, "can be got at by taxation"