The Washington herald., 1918-08-14
BILL
INCLUDES TAX
|. ON OCCUPATION
Business or Professional In
comes Over $1,000 Pay
$40 Yearly.

An occupation tax or tl0 a year on
every business, occupation and profess
sion earning 1900 or more a year was
adopted by the waysand Means Com
mittee yesterday as a new section Of
the revenue bill. On Wholesale con-
Germs doing a business Of $4,000 or
more year the tax will be s25
The only exemptions from payment
Of the occupationai tax are employees,
farmers, clergymen and school teach
ers. 1t will include lawyers, dentists,
authors, engineers and artists.
No estimate has been received by
the committee from the Treasury De-
partment as to the amount Of money
the tax will produce.
The committee adopted an amend
ment to the section imposing a tax
on leased wire and talking circuits
so as to exempt from the tax the
leased wires used by press associa-
tions and newspapers and periodicals.
The tax will still apply to brokers
private wires and circuits.
Amendment Hits Line-Jumpers.
The committee also adopted an
amendment to the income section to
provide that citizens OF this country,
residing in Canada or other foreign
countries, shall pay to the country in
which they reside the income tax on
that part Of the income derived there
The effect Of this will be that Ameri-
cans residing In Canada shall pay to
Canada whatever may be due under
the Canadian income tax regulations.
The purpose of the amendment is to
collect the tax from a large number of
Americans who have sought to evade
payment by crossing the Canadian
line.
1T all goes to the allies anyway,
so we ought to make our fellow citI-
zens pay II to Canada" explained a
member OF the committee.
MeAdoo to Appear.
Secretary McAdoo conferred brief
ly with Chairman Kitchin yester-
day and It was arranged to have
him go before the committee this
afternoon to make a statement ex-
planning the reasons for imposing
a stiff war profits tax. It is ex-
pected that Secretary McAdoo will
lay before the committee a great
deal of the secret information in
the possession of the Treasury De-
partment showing how some OF the
rich profiteers have escaped. The
hearing will be executive.
After Secretary McAdoo has COM
pleted his statement, the committee
hopes to be able to reach an agree
ment upon the war profits and ex-
cess profits sections SO that the
bill will be ready for introduction
in the House next Monday. All of
the other sections OF the bill have
been practically completed. and the
estimates from the various sources
of taxation imposed are within
$500 100000 OF the desired total of
ss. 0O0. 100000.
The luxury tax section has been
revised and definitely agreed upon
by the committee. 1t is one of the
most interesting SECTIONS OF the bill,
affecting as 1t does a larger proper
tion of the population than any
other schedule in the measure. Here
Is the full text OF the luxury sec
ton as IT will appear in the final
draft OF the bill:
The Luxury Section.
y TOl1 anu after NONenDeT i, lsle,
there shall be levied, assessed and
collected on the consumption and use
OF the following enumerated articles
tax equal to 20 per cent OF the
amount paid in excess Of the amounts
specified:
'1-Fiber carpets and rugs in excess
of IS per square yard.
"2-Picture frames. SO each.
''3-Trunks. $50 each.
"i-Valises. travelling bags. suit
cases. hat boxes used by travellers,
and filled toilet cases. s25 each.
"5-Purses, pocketbooks, shopping
and handbags. $50 each
"S-Umbrellas. parasols, and sun
shades. 81
'7-Fans, 81.
''S-House or smoking Jackets or
coats. and bath or lounging robes. $40
's-Men's waistcoats, sold sepa,
rately, IS.
'10-Men's and boys suits and over.
coats mot including uniforms for the
army and navy. $50.
'1l-Women's and misses suits
cloaks and coats, $40; If made up by
tailor or seamstress, $50.
12-Women's and misses dresses
II bought ready made, $40; II made ur
by seamstress. $50.
'13-Women's and misses hats. bon.
nets and hoods. SOS.
'14-Men's and boys hats, s..
"15-Men's and boys caps. 50.