South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-09-08
REQUIRE ALL
WEEK FOR TAX
BILL DEBATE
Rep. KitChIn Explains History
Making Measure in Longest
Address Ever Made in
Lower House.
Associated Press Service

nation of The Disappointing reve-
nue. bill, which imposes more than
eight billions in taxes on the Amer
lean people and authorizes twice
tina amount in Liberty bonds for
next year, was concluded in the
house today by Chairman Kitchin
Of the ways and mean committee.
Mr.. Kitchin started speaking yester-
day and members said his address
was the longest ever delivered in
the house.
Probable effect OF prohibition leg
islation on the nations revenues was
frankly discussed by Mr.. Kitchin in
explaining the beverage section Of
the war tax measure. He also took
up the war and excess profits fea-
lures as we'll as those affecting cor
porations and Injuries.
General Debate n Week.
General debate on the bill will
continue next week and leaders to-
night revised their predictions for
passage Of the measure next Sat
urday. They believe now hat min
or committee revisions, possibly OF
the liquor taxes because Of pending
prohibition legislation, and debate
will prevent a final vote before Sept.
Il or IS. Rep. Fordney of Mich
gan, ranking republican member Of
the ways and means committee.
plans TO speak Monday, urging
tariff tax increase 10 get an addi-
tional revenue.
In his address today. Mr.. Kitchiu
said the bill should be enacted by
: both houses Of congress by Nov. L.
and he expressed the hope that an
other war revenue al next
/ year would not be necessary, al
though he said that ~ national pro-
hibitiOn we're enacted, new uaN
sources viii have 20 be found 10 re
place the s~1.25O.000. 900 estimated
tax on alcoholic beverages provided
for in the present measure.
Los Under Beer Order.
such legislation, Mr.. Kitchin said
probably will not be necessary be
, fore next year, although the admin
istratiou order, announced yester-
day, stopping the manufacture Of
beer Dec. /, next. will cause a loss
under the present bill Of about
1920, 600, 0Oo.
Further upward revision OF taxes.
Mr.. Kitchin stated, must be met un-
der conditions existing after the
prohibition legislation is passed.
and if il is necessary 70 find new
I tax sources, several hundred mil
lions can be obtained by tariff in
! crease. gross sales and consumption
taxes.
Corporations Not lard Hit.
Praising the alternative plan Of
imposing war or excess profits taxes
on corporations. according 10 the
highest returns 70 the government.
NJ Kitchin declared corporations
are not hit hard" by the bin. which
lie asserted. is satisfactory as a
whole 20 Sec'y McAdoo.
Ability OF every one 20 pay the
taxes imposed, AR. Kitchin insisted.
had been considered in drafting the
enormous bill. In this connection.
he said. "a -stupendous amount OF
bonds must be ioated before July
J.. Banks, he added. must bear the
brunt Of government financing and
] for This reason. a stamp tax on bank
checks. d-iscouraging deposits. was
not recommended.
Auto Taxes High.
Tobacco taxes Mt. Htchin ex-
: planned. are doubled by the bill.
while the luxury taxes hit real lux
uries. The automobile taxes. ne
thought, were rather high.
But the automobile owner can
pay H." he said. adding. however.
that the proposed system Of impos-
ing automobile license tax by horse
power measurement was unjust IN
some respects. The committee is
/ reported 20 De considering a revi-
sion. 20 base the tax on original
I cost price.
In discussing the luxury schedule.
AR. Kitchln called attention 70 the
section imposing a tax on shirts
! costing more than SO. He said any
man who paid more than that sum
for a shirt during the war should
be taxed. adding that he himself
had never worn a shirt costing
more than $50. and had gotten
"a %