Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-10-23
ADJUSTS SURTAxES
IN REVENUE BILL
Senate Finance Committee
Revising Income Provisions
of House Measure.
PLANS FOR UNIFORM RATE

/ Surtaxes on individual net incomes
in the war revenue bill were revised
yesterday by the Senate finance COM
| mittee SO that the surtaxes on in
| comes less than 100000 would be
less than in the House bill and the
surtaxes on incomes over 100000
would be greater than in the House
measure.
a tax of / per cent would be
levied on incomes between $4,000,
and $4,000, with an additional 1
per cent surtax for each $4,000 in
excess of that amount up to 100000.
when the rate would be So per cent.
A graduated scale is then fixed, under
which Surtax of 65 per cent would
be levied on net incomes exceeding
81, 900, 900.
Results in More Uniform Rate.
members of the committee said. will
provide a more uniform rate, while
the reduction in revenue will amount
to less than s25.000.000.
AS revised by the Senate committee,
incomes of from 100000 to $150.0o0
would pay a surtax of So per cent
and those between s150.000 and
100000 would be taxed Sc per cent.
From 100000 to 100000 the rate
would be 60 per cent; 100000 to
100000. 63 per cent; 100000 to
100000. "a per cent: and above
$1.000.000. IS per cent. Compared to
the House rate, this would be an in
.f Co. ha-
tween 500. 900 and 100000. 8 per cent
for those between 100000 and
| 100000, 9 per cent for those between
100000 and 100000 and s per cent
from that amount to S1,000,000.
Under the House bill 60 per cent
one and five million and IS per cent
on those above the latter amount.
What Big Incomes Will Pay.
OF the s1.O45,oss.ooo which the SEN
ate committees amendment is ex-
pected to yield. it was estimated $780,
O45, 900 would be paid by persons hav-
ing incomes exceeding 100000.
In order to protect small corpora
tons under the war profits Sched-
ule. the committee late yesterday in
serted an amendment providing that
in no case shall the tax be more
than So per cent of the amount of
Tic DeI lHCOIuS III cACcSS Ol $O,VUU
and not in excess of $4,000, plus
80 per cent of the amount of the
net income in excess of $4,000. This
amendment, senators explained, will
prevent the taxes of small corpora
lions running up to the 80 per. cent
limit. So
Adopts Combination System.
The Senate committee also adopted
a combination system for the. House
excess and war profits taxes plan.
The committees plan for this COM
bination system is as follows:
Section 301-That the tax shall be
the sum of the amounts computed
under the following brackets:
"First bracket-Thirty per cent of
the amount of the excess profits in
come in excess Of the excess profits
credit and not in excess of 20 per
cent of the invested capital.
Second bracket-Sixty per cent of
the net income in excess of 20 per
cent of the invested capital.
Third bracket-The amount by
which so per cent of the net income
in excess of the war profits credit
exceeds the tax as computed under
the first and second brackets.
I'm any case where the full amount
of the excess profits credit is not al
lowed under the first bracket the
part not SO allowed shall be de-
Quoted from the amount in the Sec
ond bracket"