Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-08-31
TAX WAR PROFITS
50 PER CENT FLAT
Incomes Below $4,000 Pay 6
Per Cent Down to FIX
enption Point.
REVENUE BILL COMPLETED
Will Go to House Monday.
Framed to Raise $3,OOO,-
100000 Annually.
REVENUE BILL COMPLETED

WASHINGTON, August 3o.-Com-
rleting its task OF framing the $4,000
100000 war revenue bill. the House
Ways and Means Committee to-day
agreed to report the measure to the
House Monday. 1t carries greatly in
creased income taxes. beginning with
normal tax OF per cent. on all be-
low $1,000 year and above the cx-
cmDtion limits
TO reach war profits. a fiat war prof
its tax OF SO per cent is levied. with
an alternative plan of excess profits
taxes ranging from 80 to 20 per cent
The maximum aurtax on incomes is
raised to G" per cent. and the normal
tax on all incomes over $4,000 is made
II per cent.
Here are the important rates rNco
individual income tax-Normal rate.
per cent on incomes below $4,000 In
other words. incomes above the 5000
Ei."oo exemption for single men. and
G;eductions AZ the rate Of $500 for each
nspendent a.n, ,n ehild Wii Sdn pay tax of
ooc the rate will he IL per cent
SuRTAN WILL nEGIN
WITH $1,000 INCOMES
The surtax will commence with )
incomes of s5,oo6.coO and over An
irE2me falling under the last bracket
per per cent FIJI eS9Ei Wi be- be the .0aa n
than the committee previously, agreed
npon when the maxinium surtaX was
PEELED the s5,c0O.ooo incomes to pay
at the rate Of ST per cent. On the
other hand. tho rates are hiEher, than
ilt ha aN .in,v lut Nir1t N
There will be no differentiation be-
rs had been suggested by Secretary
McAdoo and several members OF the
committce 1t was found thar the OBJ
such 4 schedule were too great and
the plan was abandoned,
ESs%ss &c Goa rr"d's taSA o; Ma of 9N1nn'i9n IN,
vested capital. and "a lax of 8" per
cent on the. amount Of net income not
cd capital; 30 per cent on the amount
OF net income between Il and 20 per
cent anil 20 per cent on all net In
invested capital
War profits tax-A fiat tax OF 50
ss ssn' w 9 tire pros arsS Witch
cudes a specific cNcnption OF s3.o0a
and ar amount equal to the average
urcwar years 1871, 1912 and 1913. plus
or minus 10 per cent of the invested
capital added or Wltndr2Wn since lhc
close OF the prewar period.
CORPORATIONS WILL. MAKE
TWO SETS Oi' RETURNS
Each corporation will he required To
ma Ike out two sets of returns. showing
what the tax would he under the cN
cess profits method and what IL would
lie under the war profits method. Thc
Treasury Department is, given the dis
taxation yielding the larger return.
Secretary McAdoo held nnal CON
ference with four members OF the com
mittec. including Chairman kttchin.
just before the committee voted to al
nrovc the rates Which ii had written
into the bill, AT 'his conference. Sec
rotary Mchdoo again urged that inc
recommendations OF the department. in
,hc matter of income and excess profits
rates should he followed, but the COM
mittcc refused to change the rai"s
conference. in addition to Secretary Nc
Adoo and Mr.. Kitchin. were Repre-
scntatives Garner. of Texas; Fordney.
OF Michigan. and LonsWortn, ,% 81 ~ ShiT' o
s. ADAMS. chairman OF the Trea SurI
excess profits board. and Assistant
Cooksey. of the Treasury nepartnnent.
In a formal statement issued at the
conclusion o. the committees work,
Mr.. Kitchin said:
We have practically finished the
rcction' and teN;nal changes, The
Treasury Department and the com
mittee have gotten together ahsolntcl.
and satisfactorily cn a normal tax on
incomes which will be II Der cent. and
6 per cent on incomes below $4,000 "A
year down To the exemption limit. RN
reason Of the split normal rate and the
many differences and comoleNities in
adm inist erinG the differentiated earned
and uncarned income TAX plan. and The
many Questions thai wonld arise under
an uncarned and earned income tax
plan, all agreed that II Is wiser to
make no dincrcntiar"