The Washington herald., 1918-08-16
TAXON PROFITS
Is DISPUTED
IN COMMITTEE
Treasury Holds for Present
Rates; Committee
Wants Increase.

Notwithstanding Secretary Nc
Adoo's urgent plea to the Ways and
Means Committee to accept the Treas
ury Departments scale Of rates for
the war profits and excess profits
taxes in the revenue bill, the close Of
yesterdays session found the commit
tee and the Treasury officials as far
from agreement as before.
It was firmly stated by members OF
the committee that 1t would not agree
to allow the excess profits rates to re-
main the same as they are in the
present law. These rates, It was
stated, will be very materially in
creased, and this Is the very thing to
which Secretary McAdoo 10 SO
strongly opposed.
Moreover, the disagreement will
make 1t impossible to have the bill re-
ported to the House next Monday as
had been planned. Chairman Kitchin
announced that because of the
wrangle over these rates he would be
unable to introduce the bill before the
following Monday. This will postpone
final action on the bill, which secre-
tary McAdoo insists must become law
before the opening of the next liberty
loan campaign on September 2s.
Treasury Urges 80 Per Cent.
The committee spent the entire
day in conference with Treasury
experts. who urged that the excess
profits rates should be the same
as in the existing law, and that the
war profits tax be fixed at so per
cent. DR.. T. s. Adams. one Of the
Treasury experts. assured the COM
mittee that II this suggestion were
adopted the bill would produce the
required maximum of $4,000, 900, 900.
Members Of the committee and the
committees own expert disagreed
with him and declared that unless
the excess profits rates were raised
the total would be fully $500. 900, 900
short of the desired figure.
Chairman Kitchin's announcement
OF the committees action said:
The committee no doubt will re-
port a bill that will have the en-
dorsement OF the Treasury Depart
ment. However. the excess profits
rates will be increased in the lower
brackets. while probably in the
higher brackets there will be little
IL any increase"
1t is understood that among the
suggestions made to the committee
is one to compromise on the excess
profits rates by fixing them at so,
40 and 70 per cent instead Of 80,
80 ad so per cent. as proposed by
the committee. The existing rates
run from 20 to so per cent only.
Internal Revenue Commissioner
Roper was before the committee with
request for an appropriation of
IS. 100000 to administer the new law.
This is E.500.O00 more than he is al
lowed by the present law. He ex-
planned to the committee that IL he
could increase his present force Of
field agents and accountants from
5000 to 1900 he could guarantee an
Increased return in taxes paid into
the Treasury OF at least 81 ,OO0, ,0o0. 600
This would be accomplished by ferret
ing out and compelling payment from
persons and firms which now escape
The committee, on motion OF Mr..
Garner. OF Texas. authorized the ap-
pointment Of a subcommittee to look
into the tariff and see whether some
money could not be raised by increas-
ing the import duties. The committee
consists Of Chairman Kitchin, Repre-
sentatives Rainey and Dixon. Demo-
Gratis. and Representatives Fordney
and Moore, Republicans.
Democratic members Of - commit
tee agree that fully hat tIIlion
dollars could be raised by : sreasiny
the tariff on non-competitive articles.
such as coffee, tea and cocoa. The
Republicans, however. insist that II
the tariff rates are changed il should
be on a protective tariff