The Washington herald., 1918-06-09
5 BILLION TAX
TOO MUCH, SAY
CONGRESSMEN
Ways and Means Disagrees
with McAdoos Pro-
posed Plan.

The Ways and Means Committed
has accepted as the basis of its ac-
tion in framing the war revenue bill
the recommendation OF Secretary
McAdoo that the principal revenues
be derived from excess profits, in
comes and luxuries. The conclu-
sion OF Secretary McAdoo that al
least one-third of the $4,000. .000.-
900 needed to carry on the war for
another year should be raised by
taxation is not entirely acce pied by
the committee, however. They be-
Iieve that il will not be possible &c
raise more than one-fourth Of the
revenues from these sources.
Heavy taxes upon all luXuries
will be imposed. This was decided
upon by tile committee yesterday
in considering the various sources
OF revenue that may be levied upon
Heavy Auto Tax.
The committee also decided that
automobiles. except those in the
goSernmcnt service. should be class.
ed as luxuries, and should bear q
heavy tax in proportion to theil
cost. The tax imposed in last year.
bill. of per cent on the sale price
will be more than doubled. it is un'
derstood. This tax was estimated
to produce about $25.OO0,0O0. Th'
committee feels that S5O.oOo.o0o ol
S75. 900, 900. should be realized iron
this sources
T,v1rn-1 f. fF.arnEn q EadRTzal
license of from $50 to $40 on every
by the committee.
, Jewelry and precious stones, essen
TALLY luxurics. will be heavily taxed
The committee expects to receiv,
from the Treasury Department a ns
Of all articles construed TO be in tht
luxury class. This list is now beins
prepared at the Treasury Department
and will he used as a guide in deter
mining the scale Of taxation.
, Sporting Goods.
II, B. SnaldinG. representing q firm
of sporting goods manufacturers, ap
peared before the committee JhI'
lInorning TO ask that the tax on ath
J letic goods be not excessive. He ad
7 lillllCu AllsdA dAllAtAlC kOOOS arc lAA
uries. but made a special plea for &
light tax on baseballs and footballs
upon the ground that they are beinl
largely used by soldiers.
! Athletic goods are not luxuries II
the same sense that gems are" saiC
Chairman kitohin. but on the othel
hand they are not necessities"
Spalding insisted that it should moi
be the purpose TO levy a tax that
would convince the people that it 1,
I immoral TO use them" but that the
tax should only be levied 10 raise
revenue.
Postal ZoninE System.
Representative Albert johnson. oi
Washington. advocated abandonment
Of the postal zone system on periodi-
! calls and the substitution Of a straight
tax on advertising.
I'VE do not seek to avoid taxation. -
he said. but merely to have il levied
equitably. The amount realized on ar
advertising tax would be as large as
| that under the Zoning system and
would not require the elaborate ma
chinery for collection which the lat
ter plan would need"
Chairman Kitchin stated that the
National Editorial Association. in ses'
sion at Hot Springs, Ark. had failed
to go on record as being opposed Il
the zone rates He read h telegram
certifying to this statement. To this
Johnson replied:
If the editors of small newspapers
can restrict the circulation of ma
tional newspapers in their districts
to their own profit by insisting upon
the zone system. they are taking q
very narrow and short-sighted view
Of the matter.