Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-09-10
.KITCHIN FINISHES
LONG EXPLANATION
OF REVENUE BILL
Contemplated Prohibition Leg
iSIation and Republican De-
bate May Delay Measures
Passage to Sept. II or 18

WASHINGTON, Sept 7.-EXplanation
of the hiStory-maNing revenue BILL
which imposes more than eight billions
in taxes on the American people and
authorizes twice that amount in Liberty
Bonds for next year, was concluded in
the house today by Chairman kitchin,
of the ways and means committee. Mr..
Kitchin started speaking yesterday and
members said his address was the long
est ever delivered in the house.
Probable effect Of prohibition legisla-
tion on the nations revenues was frank
~ discussed by Mr.. kitchin in explain
ing the beverage section of the war tax
excess profits features as well as those
affecting corporations and luxuries.
General debate on the bill will con-
tinue next week and leaders tonight
revised their predictions for passage
of the measure next Saturday. They
believe now that minor committee revi-
sions possibly of the liquor taxes be
cause of pending prohibition legislation
and debate will prevent a final vote be-
fore September II or Is. Representative
Fordney, of Michigan. ranking Repub-
lican member of the ways and means
committee, plans to speak Monday, urg
ing tariff tax increases to obtain addi-
tional revenue.
In his address today Mr.. Kitchin said
of congress by November I, and he ex-
pressed the hope that another war rev.
enue me sure next year would not be
necessary although ne said that If ma
tional prohibition is enacted new tax
sources VIII have to be found to replace
the 1,2Jv, 100000 estimated tax on al
cohohc beverages provided for in the
present measure.
Such legislation, Mr.. Kitchin said
L
next year, although the administration
order announced yesterday stopping the
manufacture of beer December l, next,
will cause a loss under the present bill
of about 1920, 100000.
Future upward revision of taxes, Mr..
Kitchin stated, must be met under con-
ditions existing after the prohibition
legislation is passed and if it's neces-
sary to find new tax sources, several
hundred millions can be obtained by
tariff increases, gross sales and con-
sumption taxes.
Praising the alternative plan of inn
posing war or excess profits taxes on
corporations according to the highest
returns to the government, Mr. Kitchin
declared corporations are not hit hard"
by the bill, which, he asserted, Is sat-
isfactory as a whole to Secretary Nc
Adoo.
Ability of every one to pay the
taxes imposed, Mr.. Kitchin insisted, had
been considered in drafting the enor-
nous bill. In this connection, he said,
"a stupendous amount" of bonds must
be floated before July I.
Banks. he added, must bear the brunt
of government financing and for this
reason a stamp tax on bank checks, dis
couraging deposits, was not recon-
mended.
Tobacco taxes, Mr. Kitchin explain
ed are doubled by the bill while the lux
ury imports hit real luxuries. The au-
tomobile taxes, he thought, were "rath-
er high"
but the automobile owner can pay
it," he said adding, however. that the
proposed system of imposing automobile
license taxes by horsepower measure
ment, was unjust in some respects. The
committee is reported to be consider
ing a revision, to base the tax on origi-
nal cost price.
In discussing the luxury schedule
Mr.. Kitchin called attention to the sec
ton imposing a tax on shirts costing
more than SO each. He said any man who
paid more than that sum for a shirt dur
ing the war should be taxed, adding that
ne himself had never worn shirt cost
ing more than $3.50 and had got
ten along all right"
Explaining inheritance tax increases,
Mr.. Kitchin said the raise from 25 to 40
per cent in the maximum rate Con
estates over $4,000, OoO) was "a pref
ty good, healthy increase"
81 think we've covered about all the
luxuries we could think Of" Mr.. Kitch-
IN said, explaining that one-cent tax
on tea brings only $1,oOO,00O.
When asked how soon the increased
beverage taxes would go into effect,
Representative Kitchin said:
"As soon as the senate passes the
bill"
I'VE hope it will be effective by No
vember l." he said.
I'VE think it ought to be passed by