The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-07-20
iMAY RAISE LIMIT
! ON INCOME TAXES
TO TEN PER Cen 7
Incorporation Tax May
/: Be Increased to : Per
Cent.
Is BILLION BILL
On Addition, May Be
I Necessary to Reduce
Exemptions Allowed
Single Men.
Is BILLION B IL l.

WASHINGTON, July 1a.--An increase
of the normal income tax rate on all
personal incomes from per cent TO
$40 per cent may be determined upon
by the ways and means committee.
which is now drafting the 5000. 900.
900 revenue bin. The corporation tax,
now per cent may he increased to
~ per cent
In addition 10 these increases. II
may become necessary to reduce the
exemption OF ST. 500 now allowed sin
gle men to $3.50 and that % the men
of family from 1000 IN sl1.50o
The changes were discussed by the
] COMMITTEES today. when II resumed Its
work on the hill. No decisions were
reached. but the general opinion pre-
vailed among the com mi;teemen
tpreseut. that the alterations in tho
rate. the exemptions would have TO be
made in order to provide the amount
aof revenue which must re raised from
sthss source.
Even with these increases made, the
y committee INDUCED In an exchange of
gloomy forecasts ss to the possibility
Sof raising 5000 900 600 by means OF
etaxes on personal incomes and ex-.
fcess profits. Actual figures and esti-
smates Of the amounts that may be
sraifen from these two sources are
syet 20 come from the treasury depart
Sment. But the statements in the
Ehands of the committee tended 10
show that the revenue to he derived
stherefron will fall short Of the So
100000 200 mark by possibly $1,000
1000 o0o
Consumption Taxes.
The committee agreed at the be-
kfnning of its sessions that the $S,-
100000, 600 required by Secretary Nc
SAdoos estimate would be divided SO
THAT So, 900, ooo.e 900 should come from
sexcess profits and income taxes, while
fhe remaining 50 900 coo 600 woulf be
sohtained from all the other sources of
TAXATION availa BILE for the purpose. The
fscommittee's discussion today. showed
sthat II may be necessary to revise
fhese calculations, that more than S.
200, 100000 may be raised from ex-
hcess profits and incomes and the ad-
sx1itional 10000 600 900 will have to be
raised by consumption taxes and taxes
bon so-calied Injuries. The committee
ehas hesitated to go to consumption
lakes for any OF the nsuch-needed re-
Nenue. but If the calculations made to-
day are sustained, this may become
necessary.
y ~F~FCA 40 Va ebt tNShN9'aSaus VII No1i~
Rnittee suggested a higher tax on cot
bon. but this met with scant enthusi-
Asn, from the majority members
Representative L.ongworth. OF Ohio
laid that IL $4,000. o0o 900 is insisted
upon as the minimum amount to be
sxaised by the BILL a tax on cotton will
% necessary. The Republicans have
mo hope of being able to persuade the
majority members to agree TO raise the
import duties now imposed by the I'm
Norwood tariff law.
Another phase OF the revenue situa-
41on which caused some discussion at
Nhe committee meeting was the
uhrinkagc in personal and corporate
incomes. due to a number of causes
The treasury estimate is that incomes
iOf all sorts for the taxable year Just
Nlosed will amount to about $4,000
100000. But this is believed to be
the high water mark. and nothing
like that amount is looked for in the
year ending June 80. 1919. In ex-
PLANTATION Of this. the com mittee has
been informed. incomes OF individuals
and corporations alike have fallen OF
very perceptibly. Price-fixlng OF vari-
Gus products is one cause Of this: In.
creased cost OF labor and materials is
another.
The committee is still awaiting the
data on profteering, which is to come
from the treasury department. II Ia
expected to be ready within week.