South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-08-16
WAR REVENUE
MEASURE NOW
NEARLY READY
M'AdoO Profits Taxing SyS-
tenn Against KitChin Plan
is Only important QueS-
ton Left Open.
BY RICHARD BoECkEL.

AnNNA AAAAklUuaA news ~tfhANf
WASHINGTON. Aug. 16-After
two months Of work the $4,000. 600.
600 war revenue bnl was practically
completed by the house ways and
means committee today. One lone
important decision remained TO be
made-whether the committee shall
accept the McAdoo profits taxation
plan on cling 10 the Kjtchin system.
oon this a score of minor decisions
naturally hinge.
As the bill stands today it. will
bring i'm the committee admits. half
a billion dollars less than the SIS
600 100000 minimum insisted upon
by Sec'y McAdoo according TO
Treasury Actuary Mccoy. McAdams
another treasury expert. however,
asserted that no matter which prof
it's plan IS finally adopted. the re-
turn from the bill as now written
must far exceed the required
amount Te be on the safe side. the
committee probably will accept the
lower figure.
show Cost 60 Average Man.
The bill is subject to change 10y
both the house and the senate. How
ever. by studying the authoritative
sketch Of the bill the International
News Service is able to present to
dav The average citizen may gain
fair idea OF the amount OF war eN-
Dense ne will be required so bear
during the next ( . months
indications today were that the
r.rrgfe v.ra- e-rfT H.a 9HrrfaH
by the committee without radical
change Under his plan wa
profits would be taxed al so per cent
with the AVERAGE profits OF the three
years. 1871. 1912 and 1918. taken as
the basis OF the computation. EN-
cess profits levies. however. would
run from 20 10 60 per cent with the
exemptions remaining as al pres
eut The Kitchin scheme would
make these taxes so TO so per cent
I'm addition there would he a nor
NAL profits tax OF rs per cent on
uudistributed profits and ~ per cent
ON profits distributed
NcAdoo Plan Yields Most.
Treasury experts say the McAdoo
scheme would WELD 100000 600
ss against s2.5OO.oOO 600 to- be re-
turned by the Kitchin plan
some members favored compro-
mise. but the majority seemed TO
he leaning toward the McAdoO aiau
without change
The bin rs 10 now stands is The
most stupendous piece OF revenue
. legislation ever put before any
congress. D. requires the payment
I i'm taxes OF S2-OO. 100000 more
than The t0ta outstanding currency.
To prevent the chaotic condition
that would result n am attempt were
made 10 paw an these taxes on one
day or in one month. am -nstallmeuf
system Of payment will be provided
I'M the bin The treasury depart
ment wishes instaI.Hent payment
made mandatory The committee
had favored payment instaNmenrs
on March is. June IS and Sept l5.
with 3 TO per cent reduction for
FUN payment ou the FIRST date
Turn TO Special TaNes
After summing up that Will be
undertaken when the profits tax
question is finally decided the COM
mittee then viii turn 90 special tax
eS such as those on breweries oleo-
marsarine plants. theaters etc. and
10 LIQUOR taxes to make up the bali
auce In an extremity it IS ar-
t1oritatlvely stated. the committee
may turn 20 the tariff 10 make up
part OF the deficit It is certain that
In anv new impor, duties are levied
they wit be only on tea. coffee and
cocoa
The liauor taxes wiu he taken
no last They viii ue more than
doubled possibly tripled The COM
mittee does not wish 60 attack them
antiI the last minute however. for
any announcement or increased
taxes would result in rush 40
withdraw liquor from bond and the
governments would lose half mil
lion dollars In taxes lu Cd very few
days
The proposal fer a oue-per cent
sales tax 10 apply generally does not