The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-08-24
WORK ON REVENUE BILL.
EIGHT BILLION DOLLARS MEA-
SURE ALMOST COMPLETED.
Ways and Means Committee to Decide
Two Propositions for Excess Pro
fits Tax.

Washington, Aug. ZI.-IHe 49,
600, 900, 900 revenue bill was practical
ly complete tonight except for the ex-
cess profits rates, which will apply
to approximately one-tenth Of all cor
porations the income tax normal rates
50 far as affected by the per cent
t:ifferential against unearned incomes,
and some administrative provisions
end minor details. The house ways
and means committee, which IS
framing the bill, adjourned until
Saturday and in the meantime Char
man Kitchin and his expert assist
ants outside the committee, together
with the treasury department, Will
work out matters to be put into final
shape by the committee.
Members Of the committee were
doubtful tonight, however, whether
the revenue bill can be reached be-
fore the middle of next week.
THE committee will decide be-
tween two propositions for the excess
profits tax" said Chairman kitchln
tonight, first, as an s per cent. de-
duction in addition to the $3,ooo
specific exemption, with 80 per cent
tax on profits between S and 10 per
cent; so per cent. tax on profits be-
tween Is and 20 per cent and 20 per
cent tax on profits over 20 per cent,
and second, the same exemption and
deduction with 40 per cent. tax on
profits between and 20 per cent, ana
70 per cent. on profits exceeding ~
per cent. The treasury department
has objected to any increase over the
existing law.
The committee decided on a fiat
10 per cent. deduction as minimum
on war profits. The proportion OF eN-
cess profits and war profits taxes will
remain the same, that is 80 per cen1.'
OF business will fall under the war
profits tax. The effect of the two
propositions for excess profits viii. be
almost the same; either would pro-
duce between s2OO,00O,000 and $780,
OOO, 900 more than under the rates et
the existing excess profits law when
the treasury wants unchanged. Ii
there was no alternative war pronts
tax, this excess profits plan woulo
produce $500, coo, 900 or S900,0o0,OO
more than the present excess prohts
law.'
The committee decided on a fiat 10
per cent. minimum deduction for pre-
war earnings in computing the war wal.
profts tax. A provision affecting
corporations with swollen profits that
would not otherwise come within
either war profits tax Or the excess
profits tax was adopted. This provls-
io.. directs that any corporation
whose capital exceeds s1,000,O0O shan
paw a tax Of ct least l per cent. OF
its net income as excess profits. TO
take care OF the smaller corporations
the committee has adopted 4 limlta-
ton that excess profits Of war profits
ta:; on corporations whose capital does
not exceed SIS, 900 shall in no case
exceed 35 per cent of it's total
net income On corporations not eA-
ecGing $4,000 capitalization, this
r,ayimum shall be 40 per cent. of net
r come.
Chairman Kitchin estimated that
the excess profits and war profits tax
VIII raise approximately $4,000, ,O00,-
900 based on the year 1917.
The committee has retained the
definition of invested capital practi-
cally the same as in the existing law.
Chairman Kitchin said The treasury
il working out a provision for the
differential against unearned IN
comes