Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-08-09
A Horsepower Tax on Motors
and Doubling of the Present
Tobacco Taxes Agreed Up
on By FramerS of Bill,
LEASED WIRE LINES ALSO
TO BE TAXED 10 PER CENT
Ways and Means Committee
Probably viii AcQuieSCe in
McAdoo's Recommendation
About War Profits Levy.
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inv nosNtHe JOURNAL SPECIAL LsAsTo wsEl
Washington, Aug, S,-Tax of % per
cent on amounts paid for leased tele-
phone and telegraph lines. including
press associations and brokerage cir
cults horse power tax on automo-
bile owners and a doubling of the to
bacco taxes of the present law. in
stead of higher range rate, as pre-
viously agreed upon were written
into the SS.000.000, 900 revenue bill
today by the house ways and means
committee
Chairman Kitchin, in a statement
issued tonight. replied to the tele-
gram of Secretary McAdoo favoring
retention of the present excess profits
law and a flat 80 per cent war profits
tax as an alternative, according to the
greater revenue likely to be raised in
each corporations case, Mr. Kitchin's
statement indicated that the commit
tee will retain in substance tho dual
or alternative system itsagreed upon,
but will insist that the excess profits
tax, instead of remaining at the pres.
ent rates. shall be increased. either as
the committee has agreed upon them
or by some compromise adjustment
"I received Secretary McAdoo's tel
egram on August 5" said Mr. Kitchin,
land with the exception of the retain
ing of the rates on excess profits in
the existing law, / agree and think
the ways and means committee ten
days before the telegram was receiv-
cd determined on the motion of Rep
.resentative Crisp of Georgia to have
a war profits tax as an alternative
for the excess profits, the treasury to
select which ever tax shall raise the
higher revenue. | did not give this
action to the press because we were
trying to work out the inequalities in
volved in the alternative system and
TO fix a proper relation between the
excess profits and war profits tax
methods.
II have no doubt the secretary of
the treasury, the treasury department
and the ways and means committee
will work out an equitable way in
which to equalize these relations and
adjust them. The committee is thor
oughly convinced that with the al
tentative war profits tax. the excess
profits tax rates in the present law
are too low. / think the committee
is unanimously of that opinion. With
the excess profits rates tentatively
agreed to by the committee and the
alternative war profits plan. we will
catch everybody"
Resume of Committee Work.
Mr. Kitchin's resume of today's
committee work follows:
"The committee agreed to put tax
of per cent on freight transporta-
ton within the United States. origi-
mating in foreign country, to apply
on that part of the shipment within
the United States.
1--WE increased the tax on transpor-
tation of oil by pipe line from to 8 "
per cent.
"A tax of 10 per cent on the amount
paid for leased wires and talking cir
cults was agreed to. That. includes
telephones. There is no tax now on
these leased lines. | have no estimate
of revenue from this source. The tax
will be paid by the lessees.