The Washington herald., 1918-08-31

$S,OOO,OOO,OO0
REVENUE BILL
IS COMPLETED
Committee Awaits Printed
Copy to Make Its Final
Revisions.
REP. KITCHIN SPONSOR
Secretary McAdoo Opposes
Several Provisions Writ
ten Into Measure.

The $8,ooo,ooo,ooo revenue bill
was completed by the House Ways
and Means Committee yesterday.
The corrected draft was sent to
the printer with a rush order so
that it may be given a final re-
vision by members of the commit
tee before it is reported to the
House. Chairman Kitchin will
introduce the bill either Monday
or Tuesday. -
Under the rates agreed upon by
the committee, the bill is esti-
mated to raise between $Ioo, ,ooo, 900
and $2oo, ,ooo, 900 more than the de-
sired maximum of 5000, 900, 900.
Mr.. Kitchin said the latest calcu-
lations of the committees experts
convinced him the total will be
almost S., zoe, ,ooo, 900.
The bill will go to the House with
out the full approval OF Secretary
McAdoo and the experts Of the Treas
ury Department who have co-operated
with him in his recommendations re-
garding certain rates of taxation.
The excess profits rates and the in
come tax rates are too high. in Sec
retary McAdoo's opinion. 1t is prob
able he will ask to have those rates
lowered by the Finance Committee
Of the Senate.
Important Rates Included.
Here are the important rates fixed
in the bill:
Individual Income Tax-Normal rate
II per cent. with an abatement OF
s per cent on incomes belowe 5000;
in other words, incomes above the
5000 exemption for married men and
the $500 exemption for single men.
and deductions at the rate of 500 for
each dependent child. will pay tax
OF per cent up to 5000. while above
$4,000 the rate will be u per cent.
There will be no differentiation
between earned and unearned in
comes, as had been suggested by
Secretary McAdoo and several MEM
bers of the committee.
Excess Profits Taxa fat exemp-
tion OF $4,000 and 8 per cent of the
invested capital. and a tax of IS
per cent on the amount of net in
come not in excess of Is. per cent
of the invested capital; 50 per cent
on the amount of net income be-
tween Is and 20 per cent; and 70
per cent on all net incomes in ex-
cess of 20 per cent of the invested
capital
Levy on War Profits.
War Profit Taxa fiat tax Of
so per cent of the net income in
excess of the war profits credit.
which includes a specific exemption
OF $4,000 and an amount equal to
the average net income of the cor
poration for the pre-war years
1911. 1912 and 1918. plus or minus,
10 per cent of the invested capital
added or withdrawn since the close
OF the pre-war period
Secretary McAdoo held a final con-
ference with four members of the
committee, including Chairman Kitch-
In. just before the committee voted
TO approve. the rates which IL had
written into the bill AT this con-
ference, Secretary McAdoo again
urged. that the recommendatio
OF the department in the mat
ter OF the income and excess profits
rates should be followed, but the
committee refused to change the rates
agreed upon. Those who attended
the conference. in addition to Sec
retary McAdoo and Mr.. Kitchin. were
Representatives Garner, of Texas
Fordney, of Michigan, and Long.
worth OF Ohio: Assistant Secretary
Lefhngwell. d. T. s. Adams. chair
man of the Treasury Excess PROFIT,
Board. and Assistant Cooksey. of the
Treasury Department
Several Regarded Too High.
Secretary McAdoo and the nssis..
ants of the Treasury Department an
prove of the bill as a whole" NJ
kitchin added. but some Of tbe
rates are still regarded as too hi,-,
ey MT. McAdoo. For instance he
considers the rate of Is per cent cor
porate income tax with the nb,ts.
ment to u per cent on the an,onnt
OF distributed earnings toN be to-
nigh, and that the excess profits an5
individual income rates are somewbat
excessive" "a'