The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-08-24
Plan to Put Increased Tax
on Sodas, Sundaes and
Other Popular Drinks
NEAR BEER ALSO
WILL PAY MORE TAX

Chairman Kitchin Explains Differ
ence of Treasury and Committee on
Excess Profits.
WASHINGTON, Aug 24.-Deyotees of
soda water, near-beer and carbonatedl
drinks of all kinds must fortify themselves
against another cruel shock. Hard-heart-l
ed members of the ways and means COM
mittee, now framing the new revenueI
bill, are declaring that the levies on this
class of beverages must be materially in
creased. Ten days ago existing law rates
were sent skyward Now the exigencies
of filling further financial holes in the1
big financial measure render another boost
desirable
As now written in the bill a tax of l0l
per cent is imposed on all soft drinks sold
by manufacturers, producers, bottlers, orr
importers. In addition, a tax of cents
is to be levied on each 10 cents paid for
all soft drinks sold at soda fountains. On
each sale of cents or less the tax is
cent Sundaes and all connections I'M
which ice cream becomes a component
part are included in the tax
A tax of 10 cents a gallon is levied on
near-beer and similar fermented bever-
ages containing less than one-half of /
per cent of alcohol. The present rate on
this class of drinks is one cent a gallon
The treasury department recommo nds that
tax of Is cents per gallon be imposed.
| The soft drinks schedule as itten in
the revenue bill is estimated to bring in
ISl000O0.000 a year The treasury officials
seek the levying of such rates as viii pro-
duee not less than S250,000, 900 fl ON that
source and have consistently urged that
high rates be substituted for those already
placed in the pending measure.
| The opinion was expressed by some COM
mittee members that the levies on soft
/ drinks will be Increased before the bill
is reported. The present intention is To
make the rate 80. instead of 10 per cent
on all soft drinks sold by manufacturers
producers, bottlers or importers Other
changes calculated to bring in more rev
enue are under consideration
The hearings relative to the excess ant
war profits methods, with the alternative
plan by which the treasury won asses,
whichever tax would realize the maximum
OF revenue, have been made public 4
statement of the- situation, OUTLINING ex
actly the differences between the commit
tee and the treasury on this feature, mad
! by Chairman Kitchin, explains the att
: tude assumed by each. 1t follows:
As | understand it. and / believe tn
. committee so understands, there is n
, difference between the department an,
this committee with respect to the alter
|, native method-that is, an excess profit
: methods and a war profits tax method
I to. be computed on the method that woul
/: !. yield the higher tax. The committee ter
/ tatively decided upon this week or tie
days before the receipt of Mr.. AIcAdoo
: telegram to me insisting on such an a
e tentative method. But the difference b,
! tween the department and the committe
: seems to be this: The department. wit
the exception of the provision as to th
general pre-war percentage in which th
. option is given the cooperation, insii
that the deduction in the war profits met
Cd shall be the average net profits made
the three pre-war years, 1911, 1912, an
= 1919, and that the excess profit metho
ID be the same as in tt existing law; tn;
n; is, that the rates shall not be increase
y | understand that is the departments p
err sition
gs BY the departments position 90 p'
), cent of the corporations would he take
T. by the war profits method which inevi
I'd ably increases the taxes of such corpor
8; tions over the taxes in existing law. fro
= 50 to in many cases 300 and 800 per cen
r. and 10 per cent of the corporations wou
ut be taxed by the excess profits method, al
if the rates are not raised these corpe
atoms will not have their profits tax
Z raised or increased a penny to help raj
the required ss,0O0OOO,Q0o, but viii pi
the same amount of taxes as they are nc
paying.
''The committees position is to ha
the alternative methods. the tax to
computed by whichever method won
nd yield the higher tax, but that the tax
OF lation between the two methods should
nd so adjusted that there would not be su
le- an inequality and discrimination agar
gn corporations falling into the war prof
,ur method
The comm ttee contends that the
partments plan would show too much d
cIimination against the corporations tax
= under the war profits method. Among t
Ilthonsands of lucky. fortunate corporate
that viii fall into the excess profits I
: method and, if the rates remain as I'll
: are now. as the department insists. v
nay no increase OF profit taxes, are
Ford motor company. Eastman kod
company National Cash Register com
n nv. National Biscuit companv, Stands
=! Oil company OF Indiana. the Standard !
company of Kansas. United Cigar Sto
n Of America. American Tobacco compal
II iggett and Myers Tobacco compal
III First National Bank of New York. a
ia numerous other such corporations. ]
III committee thinks and contends that 8,
corporations should have their pro
taxes increased along with others. q
therefore insists that the excess pro
rate be raised over existing rates.
The definition of wealth is taste. ]
Ii soul sets I'D It's own mansions and