The sun., 1918-07-20
TOPPER CENT. TAX ON
NORMAL INCOMES
Committee Framing Revenue
Law Indicates Big Rate
Increase.
Special Despatch TO TIE suS.

WARRINGTON. July 10. - The normal
tax on personal and corporate incomes
next year will be probably not less than
10 per cent. according to indications at
to-day's session Of the Ways and Means
Committee, which is framing the new
tax law. The present normal tax on
personal incomes is 4 per cent. and on
corporate incomes per cent.
The most striking feature of the ses-
sion was the apparent preponderance of
sentiment in favor OF this increase.
Even to approach the enormous amount
Of money whichImust be raised from
taxes on incomes. including normal
taxes, supertaxes and excess profits
taxes, most of the committee have be-
come convinced that 1t will be necessary
to adopt 10 per cent. as the normal rate.
with the present exemptions remaining
| in force.
The committee is still without accu-
rate figures to show the total taxed in
| comes for 1917 and without a depend
| able forecast of the total in the present
calendar year. Until these figures are
supplied the actual draft of the new law
| cannot be begun. y
The most reliable estimates the COM
mittee can obtain make 1t appear that
| the heaviest taxes that can be placed on
incomes without actually decreasing
revenue through killing Industries will
| fall far short of the amount desired
from these sources. 1t is estimated that
instead OF raising $4,000. 900. 900 through
| income and excess profits taxes the total
will be fully billion short.
In regard to the loss OF revenue
through the possible enactment Of the
prohibition amendment, cutting Off all
| revenue from that source, the committee
definitely has decided to ignore the dry
bill altogether. In view OF the strong
doubt OF being able to raise $4,000, 000,'
900 from all sources. 1t Is certain thai
the doubled taxes on distilled. brewed
and fermented liquors. wines and beef
will be Included in the new bill
The majority Of the committee doe!
not feel that they should be called OF
to guess whether the dry bill is going L
pass and not be vetoed by the President
Direct taxes on the liquor industry
combined with the taxes on the Income
from the business under the proposes
doubled direct tax rate, would yiel
about $1,000. 100000. Cutting of thi
sum. even the dryest member of tn
committee admits. would make doubl
: hard the task Of raising ss,0o0.ooooo
through taxes. which some of the ia:
r even with the liquor taxes available.
The suggestion that all amusement ad
l missions taxes be doubled, was made !
to-day discussion, and little opposite
was 'ieard.
l 1t vas suggested also that a tax %
per cent. be imposed on all gross sales
coupled with the assertion that II woul
l raise close TO 81. 000. 100000 a year. TIL
committee did not go into the auestio
2 deeply to-day, reserving it until tina
I part of the measure is reached.
\ II the conviction OF many members c
the committee proves correct larg
1 programme Of consumption and luXur
= taxes will have to imposed. Those mem
{ bers who are certain that not more tina
$4,000. 900, 900. at most can be raise
/. from income and excess profits taxes. do
h clared 1t would be necessary 10 exten
= direct taxes such as consumption take
= to untouched fields.