Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-05-31
WAR WEALTH MUST
PAY COSTS Of WAR.
CONGRESS BELIEVES
President Wilson's 40-60 Pol
icy Is Opposed as Being Too
Lenient by Members of His
Own Party

Own Party
WASHINGTON. May 2S.-Congress
will strike a blow at luXuries and non
essentials under the new tax bill.
Double and in some cases treble, the
present tax will be placed on automo-
biles, JeWelry, sporting goods, musical
instruments, etc. Heavy drains will be
made on incomes ranging from $4,000 to
100000, while those over 100000 now
tapped up to Sc per cent VIII be still
further hit.
Automobiles excise taxes will be in
creased from per cent to at least 6
per cent of the sale price, leaders de-
cla-ed today, and in the case of passen-
ger cars, to 10 per cent. Taxes on
jewelry will be boosted from the pres
ent rate of 3 per cent to 10 or 90 per
cent; sporting goods will go from
to 10 per cent; perfumes cosmetics,
etc, from 2 to s per cent; patent medi-
cines from to 6 per cent and musical
instruments from to : per cent, &C
cording to present plans.
Incomes and excess profits will con-
stitute the greatest problems before the
committee Taxes on incomes over
81 ,O00,0 900 are now IS per cent and upon
war profits over SO per cent there is
tax of 81 per cent. Owing to other huge
taxes paid by men of great wealth the
present tax substantially drains their
incomes and for that reason, leaders
declared today, the heaviest new bur
dens will fall on incomes between So
600 and 100000
Scale of Taxes
Upon incomes from $4,000 TO $T,5oO,
which now pay a tax of per cent, 1t is
planned to levy Z per cent; between
$500 and $4,000, present tax per
cent. proposed, 8; between $4,000 and
S12.5OO, present tax, Z per cent, pro-
posed, 10 per cent; between s12,5OO and
$4,000. present tax, per cent, pro
posed IL per cent. and a like rate of
increase up to incomes between S4U,-
900 and $50 900.
Between $4,000 and $50. 900 the pres
ent rate is II per cent, and 1t is pro-
posed to take 90 per cent with a like
increase on up 10 incomes of S2oO,OOu
Incomes of $250,OOO to 100000 now
pay IS per cent. They will pay from
so to 54 per cent under proposed plans
Upon these higher incomes, the in
creases will be made as steep as pos
sible. so that a man who is making
more than S1O00,000 a year will have
10 nav the government practically 80
per cent of everything he gets over
million.
plans are vague respecting profits.
Some favor taxing war profits, others
want to keep the present excess pronC
plan. One plan talked of is TO estao-
fish a normal peace price Tor practical
", everything to be taxed and then take
from Is to 80 per cent Of everything
above that, leaving the person taxed
10 to % per cent increase over peace
nrices. This plan, however, will PROB
ablv not get consideration long
Wilson Endorsed
Wealth conscriptionlSts IN congress
TODAY welcomed President Wilson 10
their ranks. -,
The presidents suggestion that the
government would naturally look 70
var nrofits. incomes and luxuries to
furnish the new taxes was hailed as
evidencing the presidents conversion to
their way of thinking.
At the same time opposition develop
ed in the presidents own party 10 the
1890 fiscal policy he has laid down.
Representative Kitchin, house Demo-
cratic leader and chairman Of the
WAYS and means committee, which will
frame the bill, is baking at this to-
day. Kitchin wants larger proper
tion raised by taxation.
There should be no attempt to fix
an exact ratio" said Kitchin. But a
larger percentage than 40 should come
from taxes. We must get these huge
profits while they are here to be had
President Wilson has twice expressed
himself to congressional leaders as
strongly favoring this exact proper
ton, once in a memorandum to the sem
ate finance committee, and again in
response to an inquiry from Senator
Simmons as to whether he would &C
! cept some other ratio.
1t was his insistence on this exact
4 N1aI Tr11lVN
! senators to break away last Saturday
| and upset what seemed certain to be an
| amicable agreement to postpone the
| bill until a special session of congress
| in November.
Republicans said they could not bind
| themselves to this or any other definite
| plan because they couldn't tell what
! war profits are going to be in 1918.
Neither would they agree to pass the
| bill by the end of January which the
! president also insisted on.
| Indications are that the 1880 ratio
| will be one of the big points of con-
! troversy.
! But on the principle that war profits,
! incomes and luXuries must bear the
! brunt, congress seems practically unan-
| imous today The only difference is
| the degree to which these things will
| be taxed.
Senator Johnson, California. leader in
| last sessions wealth CONSUMPTION fight,
! said These Z ,des suggested for a new
! revenue bill are singularly gratifying
! to those of us who constituted a woe
! full minority last year in endeavoring
! to make war profits bear their due bur-
| den of the expenses of war.
when in the last session we at
! tempted in vain to raise the utmost
possible sums from those profiting by
| the war, we were met by angry cpl
! thets the least of which were IAN
! archist' and 'pro-German.' Apparently
! those loudest in the denunciation of the
| methods of taxation we proposed are
| now cheerfully and enthusiastically de-
handing that method. What a pity one
years excessive war profits were per-
mitted to escape without bearing their
! just burdens!"
! Representative Kitchin said today
hearings will begin within ten days
| He expects to report the bill to the
! house in August.
Military Bill Up
The $4,000, 600, 900 military bill pro-
viding for the army's needs during the
next year of the war came up in the
house today.
| Both Chairman Dent and Representa-
tive Kahn, ranking Republican of the
| house military affairs committee, today
| will "a