Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-08-03
Present Tax On Cigarettes,
Tobacco and Cigars viii Be
Greatly Increased, Accord
ing to Present Plans.
SMOKERS OF NATION TO
HELP SWELL WAR CHEST
Change in Measure Is Expect
ed to Yield approximately
$4,000, Annually in
Place Of S168,000,0O0.
bow aoaNlna JOURNAL ss.elAl lr.srp mIprl

ter MORNING JOURNAL SPECIAL LEASED wIRH1
Washington, Aug. 2.-Heavy in
ereases in the present war tax on
tobacco, cigars and cigarettes were
agreed to today by the house ways
and means committee as part of the
new $4,000, 900, 900 revenue bill. The
tax imposes three times the existing
rates on some items of the schedule
and Is expected to raise approximately
$340,000,000 in comparison with the
present $16S,OOO,OOO revenue from
tobacco.
Members of the committee today
said all danger of delay is over and
the bill will be in form to report when
the house reassembles August 49, The
committee went back today to the in
come surtax paragraphs and while
there was no definite action it was
evident there had been heavy in
creases In surtax rates.
~ May Tax 9iSxcess Profits.
There was also some discussion of
two plans to superimpose a strictly
war profits tax on the excess profits
tax, one of the plans being for com
plete supplemental tax, every dollar of
which would be additional to the ex-
cess profits revenue, and the other
an alternative proposition under
which the treasury would impose
either the excess profits tax or the
war profits tax, but not both of them.
70 N hn = h
which would bring the larger reve-
nue. in each individual case.
Today's action as to war taxes on
tobacco was Independent of the spec
cal license tax on manufacturers OF
tobacco, in which double the present
tax was imposed on the basis of the
annual sales.
Chairman Kitchin made this state
ment tonight:
The committee reasoned the fol-
lowing tentative decision as to the
tobacco schedule: On cigars weighing
not more than three pounds per
thousand tax increased from the pres
ent 81 per thousand to 81 per thous-
and; cigars weighing more than three
pounds per thousand and retailing at
not more than four cents each, in
creased from SO to IS per thousand
cigars retailing at more than four
cents and not more than seven cents
each, increased from 81 to $40 per
thousand; cigars retailing at more
than seven cents each and less than
Is cents each, increased from Sc to
SIS per thousand; between Is and 20
cents each, increased from So to $40
per thousand; and those retailing at
20 cents or more, increased from $40
to $50 per thousand
Jewellers Make Suggestions.
Cigarettes weighing not more than
three pounds per thousand anil Ne-
failing at less than cents each, in
creased from s2.05 to IS per thous-
and those of the same weight re-
failing at cents or more, increased
from 1905 to sS per thousand; those
weighing more than three pounds per
thousand, increased from $3.50 to $40
per thousand.
Tobacco tax increased from 13 to
80 cents per pound.
''Cigaret papers and tubes tax
doubled.
Experts estimate that the revenue
from the twelve month period, from
these tobacco taxes will total $780,
900, 900 against present revenue of
s16S, 100000 from the same sources.
The committee adjourned until Mon
day when the luxury taxes probably
will be considered"
The ways and means subcommittee
on luxuries held a hearing at whicn
jewelers. committee contended that
by collecting the tax on the basis of
sales to the consumer $15O,Ooo,ooo
more might be raised than If imposed
on the lesser wholesale price.