Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1918-10-11
SENATORS MODIFY
KITCHIN jewel TAX
Committee Talks OF Knock
ing Out Entirely Levy
on Clocks, Watches
LUXURY ITEMS
ARE APPROVED

WASHINGTON, oct. 1.-THE Kitchln
bill received a little more rough treat
ment from the Senate Finance Commit
tee In its one session yesterday. To
the bill the House provision that In
begin with the committee struck from
addition TO the regular tax on jewelry
Of 10 per cent OF its selling price,
jewelry having platinum in its makeup
should be subject TO an additional 10
per cent tax. The committee felt that
II Il be the desire Of the government
to prevent the sale Of platinum In or
der 20 conserve It for war purposes its
sale should be prohibited and the stocks
on hand taken over.
While dealing with the jewelry tax
the committee struck out the provision
exempting from the 10 per cent tax on
iewelry sales dealers who sell JeWelry
as a side line with gross sales not eX-
ceeding $500 a year. The committee was
unable to see why this provision was
a necessity or why II was put in al all.
The out and out luxury tax schedule
was approved with one exception. Inc
committee passed over for future con-
sideration the inclusion Of all watches
and clocks, except watches purchased
by officers and men OF the army ana
navy, under the luxury schedules.
In the discussion OF this part OF the
bill the committee leaned toward leaV-
Ing time pieces out Of this schedule en-
tirely. except those costing more than
a set amount TO be decided upon later
Senator Thomas (ColO.) introduced an
amendment designed TO levy a prohibit
tive tax on political contributions In
excess OF $500. As his amendment Is
worded Il would place a 400 per cent
tax on the excess OF any contribution
above $500 to the cause Of any candl-
date In either a primary or general
election. This would apply to the con
trlbutions Of persons and corporations
as well.
The Thomas amendment would re
quire committees 20 make returns TO
the Commissioner OF Internal Revenue
and all political committees. county,
Stale and national, TO make full returns
OF all contributions made 10 them Win
In thirty days after any election Is held.
While the committee was at work
Senator kellogg Mimi on the floor
OF the Senate attacked the constitution
ality OF the provision In the kitchin
bill for taxing the salaries OF state,
county and municipal officials and the
income from the securities Issued D.
States. counties and municipalities.
"The necessities Of the war do not
Justify the government in laying hands
upon the sovereignty Of the States,
the Minnesota Senator said. THE con-
tinuance Of our dual form Of govern
ment. the stability. independence and
effectiveness Of our state and municipal
Governments are Of the greatest I'M
portauce TO the peace and happiness
OF the nation and the perpetulty OF our
institutions.
II do not believe that there exists
such an eXlgency in the Federal Gov
eminent as TO require this dangerous
and doubtful experiment. The Score
tary Of the Treasury has stated that II
will yield but little revenue. Another
thing-the tax Is not levied upon the
income Of bonds hitherto issued-only
upOn those Issued after this revenue
law becomes effective. In this time
OF war when OF necessity all OF the
powers OF the Federal Government ara
marshaled let US not under the guise
OF war necessity undertake to change
the very fundamental principles upon
which the Federal and State govern
ments maintain their separate exist
ence."
Senator Kellogg pointed out that
while there is no express clause Of the
Constitution foTbidding such tax the
very nature Of the sovereignty Of the
States must forever prevent such tax
being construed as legal and constitu.
tional.