The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-30
8 BILLION REVENUE
BILL TAKES SHAPE
No Increase to Be Made in
Taxes on Transportation,
Committee Decides.
PIPE LINES CONSIDERED
Uncertainty on Prohibition
Law Prevents Fixing Of New
Schedule on Liquor.
PIPE LINES CONSIDERED
snscial DespafcA to TIE srx.

Special Despdfch to The SuS.
WASHINGTON, July 29.--Several i'm
portant steps were taken by the Ways
ana Means Committee to-day in making
the frst draft Of the new $4,000. 200
revenue law. Summarized these were
tc-day's results:
No increase of the present taxes on
transportation will be imposed. The
rate increases on freight ana passenger
trafY,c having increased these taxes one
third and one-half respectively the COM
mittee believed another increase would
be unfair.
The question of imposing q tax on
ALI nine lines whether carrying oil for
the companies which own them or OIL
for whose transportation payment 10
made was agitated and discussed but
no definite action was taken.
insurance taxes were taken up but
this question was left ''in the air" also
The proposal was made to impose flat
per cent. tar on all insurance premiums
paid instead of taxing only new busi-
ness on the size of the policy taken >ut
as at present. Final determination OIL
this question was passed over until
later date.
The committee definitely decided to
postpone the question OF imposing m
. additional tax on liquor. beer and wine
until the last moment on account Of
uncertainty existing as TO whether this
source of revenue to tho Government
viii remain available.
Abatements on Income Taxes.
Tho matter Of finally determining
Attachments on the tax on personal In
comes was partially determined. but
final determination Of the total abate-
ment on smaller incomes was deferred.
The schedule Of supertaxes on persona
incomes was not discussed and will re-
main as presented exclusively In Satur'
days Sum, unless excellent reasons fol
changing the rates tentatively agreed
upon are laid before the. committee.
Tho suggestion was made to-day thai
pipe lines owned by oil companies should
be taxed q percentage OF the value Of
the oil transported by the lines.
with regard to taxes on insurance the
majority of the committee apparently
favored imposing an s per cent tax o.
amount Of the first premium paid. Tit
committee got into a snarl on the pro
posal to tax all payments of Insurance.
premiums. The only absolute agreement
was that tho tax II imposed should b
collected from insurance companies. thsy
adding the amount Of the tax to eaci
premium payment Some of the com
mittee were opposed to going beyond the
scope Of the present law. which imposes
tax Of eight cents for each 800 fol
which life In insured.
The committee considered marine and
casualty insurance also, but passed ovel
the general question Of taxing insurance
for he-rime being.
A strong fear Of getting gay with
the liquor question and taxes on It's sale
with the shadow Of nationwide prohibit
tion hanging over the capital. impellet
the committee to assent to the propose
that the liquor taxes be left to the last.
Two reasons were assigned for thi,
action by the committee-the fact tha
this source Of revenue may be takeI
from the Government through passag,
Of the bone dry amendment to the agri
cultural stimulation bill and the fac
that II this Is passed the President ma,
veto It. In short the committee wants
to know IL It will have a taxable thin
in liquor or II 1t will have to look else
where for another $1,000. 600. 900 of rev
enue from taxation.
The committee will turn its attentio,
to tobacco taxes tomorrow. The.
reached that point in the old bill Il
to-day's proceedings. Chairman Kitchl,
through hot weather, Indigestion an,
strong criticism was unable to atten,
the committee meeting to-day. and Rep
resentative Radney (Ill.) sat at tn
head of the table.
The committee evidently is Statistic,
with It's tentative imposition OF take
on personal incomes, income supertaxei
corporate incomes and excess prof.
taxes Only one point on which Their
Is any difference Of opinion remains t
be cleared up--the question Of abate
ments of the 10 per cent normal Ia:
on individuals.
The schedule OF supertaxes on indi
vidual incomes will stand. The aboli
ton Of the excess profits tax on persona
incomes which Disseminated agains
earned incomes in favor of unearne
incomes will stand also.
Income Attachments Unsettled.
The questions which remain to b
settled by the committee in respect I
Attachments on individual incomes ar
the abatement In favor of income
which are earned as compared wit
tnoSe winch are unearned ana tn
amount of the abatement itself tn
plans most favored by a majority O
the committee touching these point
are these:
To have a greater abatement from tn
normal tax on incomes where more tina
half OF It is earned as compared to in
comes where more. than half Of Il Is un
earned.
To allow an abatement on incomes @
$4,000 and under. with a further abate
ment for the amount Of the income be
low $4,000 and $4,000 respectively 70
married and unmarried persons.
The exemptions in effect In the tw
existing income tax laws vary. A mar
rfed man pays a normal tax of pc
cent. on that portion of his income aboy
$4,000 and another 2 per cent. on all G
his income above $4,000 Similarly a
unmarried man pays per cent at pres
ent on all of his income above 81 900 an
an additional 2 per cent. on that portio
Of his income exceeding $4,000.
The sentiment OF the committee m,
Jority Is to impose only half of the Orc
posed normal tax on incomes below tn
highest exemption of the present law
This would mean a married man woul
be assessed per cent. on his inoon1
above $4,000 and less than $4,000. A
unmarried man would pay per cen
only on his income between $1,000 an
$4,000. ....