The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-06-18
II - = = - -
HEAVY WAR PROFIT
TAX IS FAVORED
New Revenue Bill to Call for
Average Of Five Pre-
War Years as Basis
RATES ON INCOMES
WILL BE'lNcREAsED
Non-essential Industries and Luxuries
Will Also Be Called Upon for Heavier
Payments License on Auto
mobiles Suggested.

WASHINGTON, June 1S.-Hearings
| on the biggest revenue bin ever framed
| by. any legislative body will end this
| week, and before the end of the month
| the ways and means committee will be.
gin the framework of the. measure to
be reported to congress about the mid.
die of August. The hearings, Judged
by the trend Of the questions asked by
members OF the committee and the in.
formation obtained, have developed that
war profits, incomes, Injuries, and nom
essentials viii bear the burden of the
taxes, with the general public reached
through probable indirect consumption
| tax on gross sales.
| 1t can be stated as a fact that the
present plans of the ways and means
committee include a tax of IS per cent
on pure war profits, which will be ar
rived at through the English system of
imposing such levies The normal profit
win be obtained by taking the average
profit during the five prewar years
1909, 1910, 1911, 1912 and 1913. All
profits over this amount will be subject
to a tax of IS per cent
| Investigation has shown that 100 of
the largest corporations in the United
States. now paying 100000 on the
basis of capitalization, would escape
without any appreeiable taxation if the
| English system alone were followed
In the years preceding the war such
concerns as. the Ford motor company
and the Standard Oil company, Repre-,
sentative Claude Kitchin said. had
| greater profits than in the years of the
war and greater profits than they were
| enjoying now by reason of price fixing
imposed by, the government.
| To overcome this the committee has
decided TO follow some such scheme as
that proposed by Secretary MeAdoo
inFiapId ", $RssSmposition of tgo- plans. Cd
Taxation, one based on .capftalizatioHH
and the other on war profits, giving the
government the option of imposing the
higher tax.
Income rates win be increased, but il
! rs not probable that the exemption OF
| 81 900 and $4,000 on single and married
persons, respectively, viii be lowered
The surtaxes will be raised and the nor
NAL tax increased from TO /.
per cent on earned incomes, while those
enjoying unearned incomes, aeeruins
from clipping coupons and collecting
rents, will be taxed Is per cent if the
present tentative plans of the committee
are adopted finally. In England The
lunearned income tax is twice as muel
as the tax imposed on earned incomes.
/ The inheritance tax rates will be in
| creased. and the exemption of $50, 0ot
now allowed will remain unchanged
The present rate upon net inheritanc.
of $4,000 (afterN the specific exemption
of $25,000) is 2 per cent, making tn,
tax $1,000. An estate of $500 paw,
$4,000, while an estate of 81 10000
| pays $4,000.
| In roughly apportioning the amour
that must be raised frem these tire,
sources of taxation, the committee ha
estimated that fully 20 per cent of tn,
aggregate of SO ,000, 900, 900 to be raise,
by the new law must come from wa
profits, incomes, and inheritance taxes
This percentage may be reduced a
the committee proceeds, especially if i
might result in lnjuring business an,