The Birmingham age-herald., 1918-08-17
Estimated That War Profits Taxes Will Yield Total
 of Three Millions
FURTHER INS ME TAX SUGGESTION TODAY
 7?s Normal Income 5 Rate Will Prob ably Begin sr5 Per cent on First $50 continuing Up to 10 .nt on s10,000

Washington August 16.-An per cent exemption, in addition to specific $500 exemption on the excess profits of cor porations, with tax of 40 per cent on all excess profits between per cent and 20 per cent, and tax of 60 per cent on all excess profits exceeding 20 per cent, was agreed upon today by the House ways and means committee The com mittee, in writing this schedule into the & ,000 0,000,000 revenue bill, also adopted the treasury's alternative plan for flat 80 per cent tax on war profits.
 The committee agreed to three classifi- cations of business for purposes of de- ducton from the war profits tax. The deduction for prewar earnings is: t'inan- cial and transportation corporationss S per cent; mining, farming and general business, 10 per cent, and mining and kindred hazardous business, F per cent. Ninety per cent of business corporations. ir is estimated, will be affected by the war profits tax, and the remainder by the excess profits tax.
 Estimates show excess and war profits taxes will yield total of $3,oO0,ooo which would bring the total of the bill much nearer the sS,0O0. .000000 goal.
 Chairman Kitchin, of the committee. said today that the treasury expected to submit tomorrow some further sug- gestions regarding the income tax. He said unless there is something to change the situation the normal income tax rate will begin with 5 per cent. on the first 5000 and 10 per cent on all incomes be- tween s4oo0 and s5o00, the surtax begoin- ming at Sa00o
 SURTAX SCHEDULE
 The surtax, Chair1man Kitchin said, probably would-stsnd as agreed to with the regular percentages:
 Five thousand to seventy-flve hun dred, 3 per cent. $7500 to $10,000. s per cent; s10.000 to $15,000, 10sper cent; s15 GOO to $20,000 15 per cent; $20,000 to $30 000 20 per cent: $3o,000 to ss0,- 0oo 25 per cent; s40.oo0 to $50,0 50 per cent. $50.000 to s60.000. 40 per cent; s60000 to $z0,0o0, 45 per cent: $70,- 900 to $So. .000, 47 per cent; $So.o0o to $a0c00 4s per cent; $90.0o0 to $1o0,o0o. 49 per cent: s100,000 to $200,0 900, 50 per cent: $200.0 .00o to s30o,000, 55 per cent; $500 900 to $500. 900. 60 per cent: $500.- 900 to $1eO00. 900, 65 per cent, and s1000, ,00O Ito $5000. 900. 70 per cent All incomes over $5,000,0 900 would pay a surtax of 75 per cent. which. added to the normal tax. would make such in- comes taxable to the extent of S5 per cent
 KITCHENS STATEMENT
 Chairman Kitchin made this state ment tonight:
 "We changed the plan for payment of the taxes by insta1lments at the suggestion and request of the treasury department, so that one-third will be due when the taxpayer makes his re- turns, another third within two months thereafter. and the remaining third two months later. The committee decided against rebate for each payment of taxes.
 'The committee appropriated the $25, 900 900 requested for the aininis- tration of the revenue laws by Com missioner Roper and authorized two additional deputy commissioners of in- ternal revenue.
 "It was decided to make q differ ential of per cent in favor of earned incomes as against unearned. The tax will be 10 per cent normal on earned incomes and IS per cent on unearned incomes. Unearned income means that part of the net income derived from dividends on preferred stock, from in- terests, rentals. royalties and an nuities."
 MT. Kitchin indicated he did not ex pect the committee to resort to the tariff in order to raise the total $S4.- o0o,oo0. although subcommittee is considering the proposal. The committee agreed to a proposal by Representative Rainey Of Illinois that~names of every person making re- turns under the income tax law be posted in county courthouses in order that the public may know who have not made returns. The amounts will not be posted. The proposal of Rep resentative Treadway of -Massachu- seus 70 put a tax on billboards was rejected