Evening star., 1918-08-13
$40 EXPLAINED
ON OCCUPATIONS
War Trades, Farmers, Min
listers and Teachers Only
Exempted.
Mr.. McAD00 TO CONFER

Special taxes Of SO a year on occu-
patton or profession except the war
industry trades. farmers. teachers and
ministers of the gospel were written
into the isht-billion-dollar war reve-
nue. bill today by the House ways and
means committee. A similar tax was
placed upon any business with re-
ceipts of $4,000 year or more, with
a levy of S25 year on wholesale
houses with receipts of 100000 or
more.
Secretary McAdoo will appear before
the committee tomorrow to discuss
the Treasury's new plans for an ex-
cess profits tax, based on rates in the
present law, with an alternative war
profits tax. This is the main issue be-
tween the committee and the Treas
ury.
Exempts From Wire Tax.
Newspapers. press associations and
posed 10 per cent tax on the amount
paid for leased telegraph and tele-
phone wires after q vigorous fight by
Representatives Rainey of Illinois and
Longworth of Ohio.
The provision was amended so as
to apply only to the stock brokers'
lines.
In addition to the ordinary duty of
10 per cent on all jewelry sold at
wholesale, the committee put a 10 per
cent tax on retail sales of jewelry
composed wholly or partially of plat
~y-tr tsr
age such use Of platinum during the
war.
Treasury's Profits Plan.
Secretary McAdoo upon his return
yesterday submitted a comprehensive
excess profits and alternative war
profits tax schedule.
After receiving the Treasury draft
Chairman Kitchin declared it "is mere
camoufiage" and that its sole pur-
pose is to '1et some Of the big fell
lows escape"
The Treasury proposal retains the
present rate on excess profits carried
in the present law, and provides for
the 80 per cent maximum on the
alternative war profits plan. 1t classi-
fies different industries and in tech
nfcal details regulates the exemption
to be allowed.
What Treasury Plans Would Do.
The Treasury plan would vest broad
latitude in the Treasury Department
in the administration of the law. 1t
would change the definition of capital
invested" would give far more dis
cretionary powers to the Treasury ad-
ministrative officials than are given
under the present law, and, according
to some members Of the committee,
would, by It's latitude as to exemp-
tions, deductions and interpretations,
enable the Treasury virtually to fix
the rates within its discretion, though
the fixed rates, apart from these quail
fcations. are the same as under the
present law as to excess profits, with
the alternative Of 80 per cent on a war
profits plan.
Provides for Tax Advisory Board.
The new plan also provides for the
tax advisory board. which the commit
tee agreed upon several days ago, ex-
cept that the Treasury proposes that
the members of the board be appointed
by the Treasury Department Instead
of by the President, as the committee
has proposed. It was explained at the
Capitol that the Treasury preferred
not to have to submit the nominations
to the Senate for confirmation, in
view Of the possibility Of contest in
that body.
The new plan was SO technical and
complicated that members preferred
to defer its consideration until print
ed copies were available. Opinion
differed among committee members
as to the likelihood Of the committee
adopting the excess profits rate of
the present law, some members con-
tending that the committee might
yield to the Treasury the respon-
sibility of handling the finances.
while others contended that a COM
promise was likely.
Tax on Soft Drinks.
The committee yesterday wrote
into the law q tax Of 10 per cent on
all soft drinks sold by manufacturers.
producers, bottlers and importers,
and tax Of from to 2 cents ON soda
fountain drinks. The COMMITTEES
hoped by such q schedule to raise
something like $100.o0o.0o0.
The 10 per cent tax proposed for
proprietary and patent medicines was
taken of the manufacturers and inn
posed as a stamp tax on the CON.
sumers. The committee hoped in this
way to increase the revenue on ac-
count OF the higher retail price al We
the manufacturers price. It was es-
timated that this would yield $4o,-
a00seo2