The sun., 1918-10-16
8 FAT JOBS KILLED
In KITCHIN TAX BILL
Senate Finance Committes
Strikes Out Provision for
an Advisory Board.
WANTED FOR DEMOCRATS
Garfield Asks That Coal Bs
Chased as Oil Gin Fairness
to Operators"
Special Despofeh 10 The srx.


WARRINGTON, Oct 15.--Five fine fat
Jobs for deserving Democrats went UP in
smoke to-day when the Senate Finance
Committee struck from the Kitchin tax
bill the provision for an advisory tar
board of FIVE members at annual salar.
les Of $4,000 and necessary" expenses
The committee learned that already
hundreds Of pairs Of longing Democrats
eyes have been fastened on these lucra-
tive Jobs and that the asplrants have
not hesitated to ask for the positions
regardless OF their qualifications or the
fact that the Jobs do not yet exist
The provision for such a board orig
mated within committee and was not
recommended by the Treasury Depart
ment AS the provision was worded In
the Kitchin bill nothing whatever was
said about making the proposed board q
non-partisan, bipartisan or any other
kind of a partisan board. As the five
members would be appointed by tho
President and approved by the Senate,
which will remain Democratic until
March next at least. the fair minded
members Of the Senate Finance Com
mittee decided to cut out the tax board
alto gether.
The members OF the committee could
not be convinced that any one OF the fiv,
appointees would be other than Demo-
Gratis. The committee believed It would
be very unfortunate to put business taxes
in the realm of politics to a greater ex-
tent that Chairman Kitchin of the Ways
and Means Committee has tried to do.
Some Kinks to he Strengthened.
The committee practically finished It's
81 .aAN
bill to-day. The administrative features
of the measure were read. However.
tho committee still has to correct some
Of the worst botches In the kitchin bill
the war profits rates and the excess
profits taxes. with the penalizing differ
entail whereby proper business reserves
are swept away by an IS per cent nor
NAL tax on corporate income retained IN
any business il imposed, while corporate
income paid out IL taxed but IL per
cent And some provisions OF the infi-
vidual income tax section Of the Kitchin
bill still have to be considered.
Federal Fuel Administrator Garfield
before the committee to-day urged that
the Kitchin bill be changed In regard to
taxes on profits made by coal mining
concerns. Coal should be placed In tho
same category as oil, DR.. Garfield urged
AZ thdt WIN cNcTy kOu VI COdl
and sold tire value OF the mine is re-
duced by Just that much. An allowance
for this fact should be made in taxing
coal mining proats, the committee was
told. 30 that tie production OF coal would
be stimulated and the war needs OF tho
nation met
In addition to the need for this stimu-
lation, Or. Garfield pointed out as
matter OF fairness to coal mine opera
tors the allowance for depreciation OF
their property should be put into the tar
bill.
surety Bond Tax Change.
The committee switched the tax on
surety and fidelity bonds from the stamp
tax title to the portion OF the bill dealing
with taxes on other forms of insurance.
The rate was unchanged, however TIA
committee struck out the proviso tina. on
indemnity and surety bonds, where a
premium is charged. an additional cent
on each dollar or fractional part OF A
dollar of the premium should be as
sessed This action leaves nat tax OF
fifty cents on indemnity and surety
bonds.
The committee, by a close vote. ID.
cided TO impose stamp tax o. two
cents on all sight drafts and cheeks
payable on demand. In tho stamp taxes
on negotiable paper such drafts ard
checks have been purposely avoided IN
the past, and It is believed the commit
tee will reconsider this action before
placing the bill before the Senate