The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-31
BIG REVENUE BILL
GETS FINAL TOUCH
FROM COMMIT TEE
kitchin Expects Measure
to Yield More Than
So, 900, 900, 1000.
M'ADOO Is HEARD
Treasury Dept. Still Be-
lieves Certain Rates
Are Entirely Too
High.
M'ADOO is HEARD

Washington. Aug. 3o.--The $1,000
100000 revenue bill was completed by
the house ways and means committee
today. The corrected daft was sent
TO the printer with a rush order so
that 1t may be given a anal revision
by members of the committee before
II Is reported to she house. Chairman
kitchin will introduce the bill either
Monday or Tuesday
Under the rates agreed on by the
committee the bill is estimated TO
raise between s1oo,oo0,oo0 and
$500. 900 900 more than the desired
maximum of $4,000, 900, 600. Mr..
kitchin said the latest calculations OF
! the committees experts convinced him
the total will be almost $4,000, 600. 00e.
The bill will go to the house with
out the fun approval of Secretary Nc
Adoo and the experts OF the treasury
! department who have co-operated
with him in his commentators re-
gardfng certain rates Of taxation. The
excess profits rates and the income
tax rates are too high, In Secretary
McAdoo's opinion. 1t is probable he
Will ask to have these rates lowered
by the finance COMMITTEES of the
Senate
Important Rates
Here are the important rates fxed
| In the bill:
! Individual Ineome T1x--Normal
rate "a peE cant With m abatement a
fsSa-B1F c4nH - s41s( ~ slSefoN 1E,0Ve,
In other words. incomes shove the
$1,000 exemption for married 1hen
and the -s1.s00 exem pt1on for single
men. and deductions at the rate OF
1900 for each dependent child, will
pay a tax of per cent mp to $4,000,
while above $4,000 the rate will be 2
per cent
The surtax will commences with 4
per cent on incomes between 5000
and $500 and run UP TO 65 per cent
on incomes of $4,000 900 and over.
An income falling under the last
brat will pay IS per cent plus the
normal tax OF 12 per cent or a total
or "a per cent. This WIFI be the maxi
mum on individual incomes and ID
lower than the committee previously
agreed npon when the maximum sur
tax was fixed at rs per cent: this
with the normal tax added, would
have compelled the 100000 in
| comes to pay at the rate OF 81 per
cent On the other hand. the rates
are higher than those In the existing
law. which has maximum OF ST per
cent
No Differentiation.
i There will he no differentiation he.
tween earned and unearned incom es
as had been suggested by Secretary
McAdoo and several members OF tht
committee 1T was found that the oh.
sfaeles in the way of administering
such a schedule were too great and
the plan was abandoned.
| Excess Profits TAXA fat exemn.
tion OF $4,000 and per cent Of the
invested capital, and a tax OF as ne,
cent on the amount of net income no,
In excess of Is per cent OF the invested
capital: so per cent on the amount Of
net income between Is and 20 ne,
| cent. and 70 per cent on all net in.
come in excess Of 90 per cent OF thu
| invested capital.
| War PrOsife Tnx--A fiat tax OF Al
per cent OF the net income IN excess.
of the war-profits credit which In.
cludes specific exemption OF $4,000
and an amount equal to the average
| net income of the corporation for thu
pre-war years 1911, 1912 and 1918
plus or minum 10 per cent OF the in.
vested capital added or withdrawn
since the close Of the pre-war period
Each corporation will be required
TO make out two sets OF returns show.
Ing what the tax would be under thu
excess profits method and what |,
would be under the war profits