Evening star., 1918-08-04
LUXUR|ES TO BEAR
TEMPER CENT TAX

A 10 per cent tax on retail sales OF
a wide variety of commonly classi-
ded luxuries. from jewelry to meer-
schaum pipes and from smoking jack
cts to silken hosiery, will be recon-
mended to the full House ways and
means committee tomorrow as result
of yesterdays deliberations of the
subcommittee on luxuries.
The semi-luxuries. goods which are
in the class where it is difficult to
distinguish between the real neces-
sity and the real luxury. such as cloth
ling, will be left to a more searching
inquiry.
May Not Raise 81, ,ooo, 100000.
A general revision Of the new eight
billion-dollar bill being drafted by
the committee will begin tomorrow to
determine where increases may be
made to make up the present de-
ficiency of billion and more in the
estimated revenue from excess profits
and income as SO far tentatively
agreed upon. Also some doubt is ex-
pressed whether the luxury schedule
can be made to produce all or the
81. .000, ZOO, 900 allotted to it.
I'VE have been considering the So
called luxury schedule" said Chair
man Hull of the ways and means sub
committee on luxuries, after yester-
days sessions. This concerns a va
riety of questions and articles.
English and French Way.
/ 1.-THE English and French luxury tax
is based on two schedules of articles:
First, articles that are luxuries by
reason of their nature. such as jew
elry, precious stones, goods mounted
with precious metals and SO on; and,
second, articles deemed luxuries by
reason of the price paid for them, as,
for instance. SIS paid for suit of
clothes, instead of $40, where the tax
would rest on the excess over $40.
This plan would extend through wear
ing apparel generally on a different
basis worked out according to trade
conditions"
The subcommittee yesterday in Its
search for taxable luxuries considered
all forms of jewelry, silk underwear
curios and antiques. liveries. art ex-
cept where sold by the artists them
| selves, tapestry. hunting garments
ladies' driving habits. license tax on
riding academies cut glass, opera
glasses, meerschaum and amber pipes,
cigar holders and humidors. smoking
jackets and lounging robes. furs, but
not those merely an incidental part
OF other clothing, ornamental lamps
umbrellas, parasols and canes when
mounted in precious metals and stones
and Nike articles.
While the action Is not final. a II
per cent tax on practically all these
was agreed upon for ratification by
| the full committee. The tax will be
| put on the retailer selling to the con.
| sumer. the retailer being expected te
charge enough to cover the tax.
| War profits tax additional to the ex.
| cess profits and corporation income
taxes, and the alternative plan te
| apply either the excess profits of 8
| war profits plan according to which
| would yield most revenue from each
| concern, will be again before the full
| committee this week.
| President Wilson let 1t be known in.
| formally yesterday that he favored q
war profits tax in the pending bill
Members of the committee say the
President has not communicated with
them on the subject.
Representative Moore, one of the
ranking republicans on the committee
| expressed this view last night:
| The higher and larger incomes ant
probab bly, the excess profits could stand
a little more than is now contempIated
in the pending bill"