The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-15
excess PROFITS tax Here are the con-
illusions from this com pa riaon:

4 ~ = a y - = IL-l ~ 49, q Ii 9
excess protsts tax Here are the con-
ILLUSIONS from this comparison;
Il. Twenty-Five horrible examples
f---selected deliberately to ascertain the
worst the war profits tax and the best
! the excess profits tax can do--yield
just four cases in which the excess
lprofits tax would be as productive as
1.-The war profits tax.
Horrible Examples.
- Eleven corporations. including
"a. com pany), and some OF the worst
of the other horrible examples get no
benefit from the war profits deduc-
tion. while they would pay the so per
cent rate which is an integral part
or the war profits tax.
20. Contrasting the so per cent with
the so per cent bracket In the two
proposed new excess profits taxes. 1t
appears that in only one case would
the change from the 80 per cent to the
( go per cent bracket affect the tax. OF
course the totals show a higher
Iamount for the excess profits tax with
| an extreme bracket of so per cent,
but IN only one case where the cor
| poration pays excess profits rather
than war profits tax, would the sub
stitution of a so per cent for an so
per cent bracket affect the tax.
All of the steel companies, will, of
course, pay far greater tax under the
war profits method than under the ex-
cess profits method.
From GA. Company the war pronts
method will, IL Is estimated, produce
nearly si00, 600 more than excess profits
tax even at increased rates proposed
by your committee.
From (B. Company 100000 more
and !
pany) would, IL is estimated. pay
100000 more under the war profits
tax methods than under the excess
profits tax method at the increased rate
proposed by your committee.
&c. Company would pay $1,000
600 more. Of. Company $4,000, 900
more. 90. Company $4,000. 900 more.
! H. Company $4,000 more. q Com
pany) S1,S00.960 more. 81. Company
81 900 more under the war profits
tax than the excess profits tax. TX,
Company would have no excess profits
tax TO pay under the increased rates
proposed by your committee. although
! it did have to pay $4,000 excess
profits tax under the existing excess
profits tax law.
More Than Suggested.
IL Company would have to pay
more than $4,000 900 more under the
war profits tax than under the in
I
been proposed by your committee.
! ON Company would have to pay
$3.50. 60o more. IN Company 5000 900
more. %. Company 100000 more. Up.
1 Company Si.lo0.0 900 more %. Com
pany). S1,200.000 more. under the war
profits tax than under the increased
excess profits tax.
| Among the conspicuous companies
certain Of the (R) group. the (s,) and
! the CID company are the only ones
which our researches indicate as bene-
/ fitting by the omission to increase the
excess profits tax.
THE Isl company under the exist
ing law would pay about s3.452,000
and under the increased rates proposed
by the company, would have to pay
$4.S69,000, an increase of about $780,
900.
The tT) company under the exist
ing law would have to pay s1,S52.o0
and under the increased excess profits
tax would have to nay S2.29S, 600. an
increase of about S400. 600"
Secretary McAdoo presented a Ia BILE
showing that of the larger coal COM
panies with alleged capital ranging
from So, 00000 TO si20.000 600 the w y
company pays no excess profits tax;
the We company paws ST per cent of
its income in excess profits taxes; the
) Wa company pays 7 per cent; the
VA company IS per cent; the VS.
company 81 per cent and the VS. COM
pany per cent.
Those Effected.
: On the other hand. of a group of six
, small coal companies. whose capital
ranges from $4,000 to $4,000 all pay
excess profits taxes in amounts rang
ing from SO per cent to Sc per cent of
> their entire income.
This comparison Of the large coal
companies with the small coal COM
I hn nj Sc
ample of the discrimination OF the ex-
cess profits tax law against the small
concern and in favor of the big con-
Germ,
Il hope we shall get, by the war
pronts tax. greater and more equal
taxes from all those who have profted
in coal"
Secretary McAdoo urged the creation
of tax advisory board and the giving
of large discretionary powers to the
commissioner of internal revenue He
reiterated his belief that the normal
tax on individual incomes should be u
per cent Instead of 10 per cent as
agreed upon by the committee and that
there should be a differential of per
cent on unearned incomes, making
the latter rate IL per cent. The COM
/ ntttees rates, he said. will cost the
go W nm IN w. =; 100000 1000, .-
tary McAdoo said. they should be
based on the theory of curtailing
. wasteful expenditure
telegram sent by Secretary Me-
, Adoo on July 25 to President Wilson
urging that congress should put the
revenue bill ahead of all otred pend
ing legislation was given 10 the com
mittee.
Secretary McAdoo was before the
committee three hours and at the con.
clusion of the conference, Chairman
y kitchin announced that the difference
between the treasury ana the commit
tee will probably be compromised