The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-18
EXCESS PROFITS
TAX MAY CAUSE
DISAGREEMENT
Required Amount Is
Reached in Drive for
Big War Sum.
COMMITTEES DRAFT
May Be Modified to Meet
Secretary McAdoos
Views-May Be
Compromise.
COMMITTEES DRAFT
Try JAMES n. sotRsEa

Washington. a ug, lI-Chairman
Kitchin announced at the close Of to-
days session OF the ways and means
! committee that at least the SS,000,0 00.-
600 figure has been reached in the
draft of the revenue bill which the
&C mmfttee has tentatively adopted. or
this sum II is estimated that the 50
per cent tax on war profits win yield
$4,000 600. coo and the express profits
tax $500. cJo 006, total of $4,000
| 600. coo from the profits OF corporations
and organized business.
The rmainder of the total amount of
revenue will be raised by the income
and inheritance taxes and the special
excise taxes on lu&uries. beverages and
tobacco.
Chairman Kitchin's estimate was
made. however. in the face Of the
fact that the committee is still in
disa greement with Secretary McAdoo
and other officials of the treasury de-
partment in the matter Of the excess
profits rates. The committee stub
bornly refuses to yield to Secretary
MeAdoo's reeommendation that the
rates on excess profits should not be
Increased above the figures in the pres
emf law. Its calculation of the amount
the bill will raise Is based upon
higher rates on xeesss prants tisssa VIII
| BIS scceptabIe to the ,heaxury and
cord with Secretary McAdoo's views.
The draft of the bill upoa
which the $SG0e 900 900 estimate
WIS made by Mr.. kitchin provides
for an assessment of 40 per cent
on nil excess profits between
per cent and 20 per cent of the
capitalization and 90 per cent
nil above 20 per cent. The deduc-
tion~ allowed are per cent and
x3,o3o. These are so far above
the rates In the present law that
1t In extremely doubtful IL the
treasury will agree to them.
Mr. kitchin left the door open 'or
further compromises with the treasury
by making 1t plain today that these
rates have not been adopted by the
committee They have been suggested
to the treasury as a compromise be-
tween the present. rates which are de-
manded by Secretary MeAdoo. and the
so, so and so per cent formerly agreed
to bv the committee. The treasury
has been asked to give an opinion on
them and experts of the department
are now at work attempting to And
out how the rates would work
Mr.. Kitchin stated that he believ I'd
the 40 to co per cent rates suggested
to the treasury by the committee
would yield to 81 600 600, 600 more than
the rates in the existing Law and at
least $500, 100000 more than tho rates
previously adopted by the committed
Not more than enc in 100 corpora
tions assessed under the excess profits
rates would have been caught in the
50 ner cent class In the rates which
the committee previously agreed to-
Mr. Kitchjp said. On the other hard
81 per cent OF them will fall In tne
class making 20 per cent net income
on their capitalization a d Will there
fore pay 50 per cent
Under these war proflts which we
have recommended to the treasury, If
properly enforced the law should yield
no less than $4,000. 600 600, Mr.. Nc
Coy. the committees actuary estimates
that the yield will be nearer $4,000
600. 600
A report from the treasury on the
committee recommendations is expect
ed next Monday. Secretary McAdoo
may find Il necessary to appear ag+,n
before the committee to make plain
his reasons for asking to have the ex-
cess profits taxes unchanged.