The sun., 1918-07-27
EXCESS TAXES
WILL RANGE UP
TO TOPPER CENT.
But Revenue Revisers Ten
tatively Plan Not to Con-
fiscate Big Fortunes.
BAN ON BRAINS REMOVED
Three Important Decisions in
Preparing Bill - Luxuries
Probably to Be Doubled.
BAN ON BRAINS REMOVED
Special Despatch to The SuS.

WASHINGTON. July 26.-Three tenta-
tive decisions of the utmost Importance
were reached to-day by the Ways and
Means Committee in the first draft Of
the new revenue bill. These steps in
drawing up the new law were:
I. A tentative decision on the rates
TO apply to individual income super
taxes reaching a maximum Of 20
per cent. on portions of incomes in
excess of s1.000.oo0. as compared
with so per cent. under the present
law
2. Annulment Of section 200 of the
existing law which puts an extra tax
OF per cent. on portions Of earned
incomes above $4,000 a year and not
affecting unearned incomes, the COM
mittee being in favor Of carrying out
Secretary McAdoo's suggestion that
this revenue be covered by an in,
crease in the individual income super
taxes
3, Limitation Of the excess profits
tax so that the tax collected from
corporations capitalized at more than
100000 should not be less than 10
per cent of the net income nor more
than 60 per cent. Of 1t, but relieving
common carriers and public u:ilittes
from the enforced payment of at least
10 per cent Of their net incomes as an
excess profits tax because their rates
are regulated by goveIpmental agen-
eies
Compromise Spirit shown.
In considering for the first time to-
sonal incomes spirit Of compromise
A-l.L
tween the policy advocated by the
extreme radicals. like Senator La
Toilette (Wis.), who wanted wealth
taxed to the limit. and the extreme
conservatives who have insisted all
along that to impose extreme taxes on
wealth would work to the financial det-
riment Of the country in the long run.
While the radicals will undoubtedly
make a st,ff fight until the bill is passed
the sentiment to-day in the committee
indicated that a majority in Congress
will be in opposition to any scheme for
the cont1scation Of large fortunes.
The schedule OF rates of income super
taxes proposed to-day Is merely tenta-
tive, and final action will not be taken
until after experts have figured out the
revenue which would be derived from
such a schedule. Raising Of the normal
tax from 4 to 10 per cent. to which
the committee Is now practically com
mitted will swell the receipts regardless
Of the action 20 be taken on the SUPER
tax rates.
In the schedule considered to-day the
supertaxes would start with per cent.
90 ha
tween $1,000 and $500 and would run
UP to 20 per cent. instead of 81 per cent.
on portions Of incomes in excess OF
81 600, 900
Tentative Schedule of Rates.
Following is the tentative scale OF
rates which a majority seemed to favor
to-day. although no definite decision was
reached:
Four per cent. on part Of income be-
tween $1,000 and $500.
and $4,000.
Six per cent. on part between 10000
Seven per cent. on part between $12,-
500 and $4,000.
Ten per cent on part between $4,000
and $4,000.
Fifteen per cent on part between $780,
coo and $4,000.
Twenty per cent. on part between $4o,-
900 and 100000.
Twenty-Five per cent. on part between
$50 900 and 100000.
Thirty per cent. on part between $780,
600 and 100000.
ThIrty-fve per cent. on part between
100000 and $15o.ooo.
Forty per cent. on part between $780,
900 and 100000.
Forty-hve per cent. on part between
$4,000 and s250.000.
Fifty per cent. on part between $780,
900 and 100000.
Fifty-fve per cent. on part between
100000 and s500.000.
Sixty per cent. on part between $780,
coo and &750,o00.
Sxty-five per cent. on part between
$4,000 and 1000 600.
Seventy per cent on part above 81
100000.
Tho classification of the amounts OF
incomes subject to the supertax Is iden-
teal with the present law.
Would Double Tax ON $1,000 Basis
Should these supertaxes be finally
adopted and the normal tax remain al
10 per cent. without any abatement for
smaller incomes. the effect would be to
considerably more than double the tar
on. for example. q $1,000 salary. A man
on such a salary now pays a total tar
OF 1?6o. adding in his excess profits
Continued on Third Page.