The sun., 1918-07-31
DUAL PROFITS TAX
PLAN is OPPOSED
Majority Of Ways and Means
Said to Be Against Treas
ury Scheme.
Special Despdscn to THE srx.

WARRINGTON, July 30.--Despte the
desire Of the Treasury to impose a war
profits tax in addition to the excess
profits tax the majority OF the Ways
and Means Committee. 1t developed to-
DAY. will oppose such a system.
At the conclusion OF yesterdays ses-
sion there appeared a possibility that
this dual system OF taxing profits might
be put into effect This possibility was
practically annihilated to-day. when the
full committee was present. Chairman
ktchin is understood to be opposed to
this tax. and the majority Of the Repub-
lican members do not like II.
It is regarded as cumbersome and in
volved. and one Of the objects Of tfe bill
Is clarity. The committee is still await
ing some word from the Treasury on
how much additional revenue might be
expected froWlhe system OF imposing o
war profits tax instead OF an excess
PROFITS tax on como corporations, but the
majority of the committee is convinced
that the additional revenue will be neg
ligible.
The reason for this belief, It is ex-
planned, is that the large corporations
from which the big taxes are expected
made great deal more money before
the United States entered the war than
since. The committee has learned that
the proposed war profits tax applied gen.
orally to business would yield only $500
100000, while the excess profits taxes
which have been tentatively agreed
upon are calculated to yield $500
100000.
The committee reached tentative de-
cisions to-day on a number OF the mis-
cellaneous taxes to be incorporated IN
the new bill 1t was decided tentatively
TO raise the present 8 per cent. tax on
automobiles. plano players. graphic.
phones. sporting goods. cosmetics, pro-
prietary medicines, cameras and the
like, to 10 per cent. This tax would be
In the form OF gross sales tax on the
manufacturer or producer or importer OF
these articles.
One exception was made in this list in
favor OF motor trucks. Instead of the
10 per cent. tax, as on automobiles. the
fact that trucks are not pleasure
vehicles compelled the majority OF the
committee to cut the gross sales tax to
per cent. on the sale of trucks.
The admissions taxes also received a
thorough revision. Tho majority OF the
committee indicated that they favored
doubling the present 10 per cent. tax on
admissions and club dues. This feature
OF the last revenue law was changed
also to include all admissions. The
present law exempts amusement places
charging cents or less for admissions
The committee wrote into the new Ia "
provision for / cent tax where ad-
missions do not exceed cents
Tomorrow the committee will begin
dealing with the schedule of so-called
luxury taxes sent from the Treasury
Department. This Is a comprehensive
schedule and already has been strongly
criticised by some of the committee
Many of the proposed taxes they think
will not raise revenue, but will put a
stop to some kinds OF business The
principal business of the committee to.
morrow, II the programme mapped on,
to-day Is followed. will be to change
the Treasury suggestions so that actual
revenue will result
The committee had planned to take
up the tobacco taxes to-day, but this
was postponed pending the receipt OF
data from the Treasury on the revenue
raised by the present tax and how much
might be expected from doubling the
tax. Most of the committee, 1t was
learned, are sufficiently acquainted with
the workings Of the tobacco tax to be
certain that doubling the present taxes
will not yield anything like the revenue
sought from this source. They are GER
tain that the imposition of a tax on
retail sales will have to be applied to
make up for some of the shortage.