Arizona republican., 1918-08-31
REVENUE BILL
 WILL AFFECT
 ALL INCOMES
Rates of Taxes Are, in the Main, Doubled, and Every
 Persons and all Business in The Country Is Reached
Republican A. P. Leased Wire]

lhepuDi1Can A. r. LcdSCS "HCJ
 WASHINGTON, Aug. 3O.-Complet- ing it's task of framing the $S,O0O,000,- 900 war revenue bill. the house ways and means committee today agreed to report the measure to the house Mon- day. It carries greatly increased in come taxes, beginning with normal tax of six per cent on all below S4000 a year and above the exemption limits.
 To reach war profits flat war prof its tax of 80 per cent is levied with an alternative plan of excess profits taxes ranging from 8 to 70 per cent. The maximum surtaX on incomes is raised to 65 per cent and the normal tax on all incomes over S4.0O0 is made F per cent The bill which will affect either directly or indirectly every per son and business concern in the United States. probably will be taken up in the house for consideration Thursday.
 What It Will Produce
 Treasury experts estimate the bill will produce an annual revenue of be- tween sS.100, 100000 and sS.200.00 900. The bill, Chairman kitchin said, is in the main satisfactory both to the treasury and the ways and means con- l uiillee. secretary MCiuOO, lie Sd1u. ndQ approved all of the schedules with the exception of the rate on excess profits. and the IS per cent normal income tax 1 six per cent for distribution of profits.
 The outstanding features of the completed bill are
 It does not impose consumption taxes or a higher tariff.
 Every person and business in the country and every American portion of income of foreign corporations oper- ating in United States is reached.
 Existing Taxes Doubled
 Rates of existing tax laws in the profits tax, as an alternative to the excess profits tax, is levied. The war profits tax is a flat 80 per cent of the net income above a specific exemption of s3000 and deduction of 10 per cent of invested capital added or withdrawn since the close of the pre-war period. The war profits tax is not 10 exceed ls35 per cent in the case of corporations invested capital which for the taxable year is not over s25,000 and 40 per cent maximum for concerns of s50.00o in vested capital
 The war profits or excess profits are to be applied alternatively according to which will produce the more reve- nue. The excess profits tax is B per cent of the net income up to 15 per cent on invested capital. 50 per cent for between 15 and 20 per cent on capital and 70 per cent for net income exceeding 20 per cent on such capital.
 Luxury Excise Tax
 A luxury excise tax ranging from 10 per cent on straight luxuries to 20 per ] cent on amounts paid for a variety of articles in excess of specified prices is levied.
 All income statutes including a nor nal tax of 12 per cent and surtaxes running up to 65 per cent are codified Under the present income tax laws individuals and partnerships pay su- pertaxes on their total annual profits up to the present top rates of SO per cent. Corporations only pay the nor nal tax and stockholders pay the SUI ! pertaxes out of the dividends. Cor porattions escape the supertax or 66 2-3 of annual profits which are re- tained in the business. Under the nor nal corporation income tax of IS De, cent in the pending bill, with a rebate ot six per cent for distributing its profits. a corporation would pay six per cent more Drfmal tax on this 66 23 of profits retained in the busi ness.
 Retains Some Provisions The bill retains the present income provisions as for payment of the ta, at the source, exempts the first s1 .00C of annual income of single persons ol Of married persons not living witt their husband or wife, and the firs s2.0OO of the annual income of married persons. and embodies most of tn, provisions of the present income ta, law.
 : An advisory tax board of five mem
 bers, at 5000 each. to advise as to in depreciation and administration of in ternal revenue laws is created.