Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-07-30
.COMM|TTEE WILL TAX
WAR PROFITS HEAVILY
Treasury Department Will Have
Option OF Method Which Will
Produce Most Results.
pRoFITEERs WILL NOT ESCAPE
Important Decisions Reached Re-
Sarding Taxation of Transporta-
ton. Insurance and Alcoholic
Beverages.

WASHINGTCN. July oo.-Wa- prort.
are to be heavily taxed in thr new
revenue bill. In addition TO re ex
cess profits taxes which the Ways ard
Means Committee already has decided
upon. there will bc schedule of heavy
imposis upon profits directly resulting
from war trade.
The bill will. In effect. provide am
Alternative system. giving tie Treas
ury Department the ootinn IF aop;y
ing 10 the profits of business the rar-
tichlar method of taxation which Will
bring tho largest return Of revenue.
In other words. IL a corporation would
pay bigger taxes under the .xc"as
profits schedule the rates on net in
come for the taxable year will be an
piled: If larger returns can no dort.cd
by taxing on the basis o. the excess
of present profits nve. those Of the
prcwar years. that method will hr
adopted.
The intention Of the committee 20
apply the war profits tax in this ,nau-
nor was announced to day by Repre-
sentative Eaiuay OF Illinois. act.nE
chairman In tn" absence of Mr Ki;ch'n
He said the tax Will he made Ei-i,
cnouG' to satisfy all critics who az
"f thc opinion that the c2;.,:iittcc
p!aan"d 10 permit waI prortcers Y,
escape The tax will follow the rec
concentrations made by tn" Presiden,
III his revenue speech 20 Congress
which was based upon actual cv,-
lcnce in the Treasury Department tina;
r-ofitecring on war supplies does exist
Three important decisions we're made
Nv taa
taxes on transportation. on insurance
ana on alcoholic beverages T;cy
were:
/. 4" make no change lr the rars-
portat;on taxes. bat 20 leave :hcin
5ust as they are In the existing law.
The reason for this is that the In
crease of freight and passenger rates
granted by the tcr-seneral prac-
tically amounts to the sane th'n. as
a higher tax on the people. In explain
ing tho commi,tce's action. MIR. Pa!ney
said:
I'VE discussed the que estlon or trans
portation and left the tax just as II Is
3 per cor; on the amount paid f!.-
transportation OF freight We did no,
increase tho tax on TRANSFORMATION OF
passengers. either. We lid this foi
the reason that The director -genernI
of RAILROADS. undrr authority granted
him. has already Increased tie frcight
charges 33 per cont and the passen:-sr
charges % per coat. The increase ~
piled also with reference to th" taA
on seats, berths etc. which wcre MOI
increased by the committed"
WILL. RAISE TAN RATES
oN INSURANCE
.. Favorable consideration by :, ma
jorIty OF the committee to a prop:sS;
TO raise the rates on life. casually ard
marine insurance. Th. committee
passed the question temporarily. In
tending to return to 1t later when ir-
formation requested OF the Treasury
Department Is received
3. A decision to postpone to TIE lasr
the consideration OF increasing ti:..
taxes on beverages The reason for
this action by the committee Is thit.
confronted by The prospect OF national
prohibition. 1t does not want 10 In
crease the RATS it they are to be with
drawn later AFR. .Rainey said. H. this
connection,
'"rha committee doesn't know wheth
or It Is going to increase the tax on
liquors or not on account OF thn tenn
perance sentiment arising md the nos
sibility OF the country going bone dry:
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