Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-08-17
ALIEN CONTROL FLAT 80 PER CENT
Tax on War Profits
Adopted
ey Ways and Means Committee Now
At Work Preparing Schedule Of
$4,000, 100000 Revenue Biil--so Per
Cent Of Corporations Would be A.
fected by This Provision

fected by This Provision
Washington, Aug. 16-An eight
percent exemption in addition 70
specific $4,000 exemption on the ex-
cess profits of corporations, with a
tax of 40 percent on all excess prof
its exceeding 90 percent. was agreed
upon today by the Ways and Means
Committee. The committee in writ
ing this schedule into the IS 600, O0c,-
coo revenue bill also adopted the
treasury's alternative plan for fiat
so percent tax on war profits.
The committee agreed to three
ciassifications Of business for pur-
poses of deduction of war profits.
The deduction from pre-war earn
ings is: financial and transportation
corporations 5 percent; manufactur
ing. farming and general business 10
percent; and mining and kindred
hazardous business y percent.
Ninety percent of corporations it is
estimated, would be affected by the
war profits, and the remainder by the
excess prOntS tax.
Estimates show that excess and
war profits taxes will yield total of
$4,000, 100000 which would bring the
total Of the bill much nearer the S.
900, 900, 900 goal. Chairman Kitchen
c.f the committee said today that, I'M
less there is something to change the
situation, the normal income tax rate
will begin with five percent on the
first $4,000, the rate continuing up to
10 percent normal on $4,000, where
the sur tax begins.
The sur tax schedule. chairman
Kitchen said, probably would stand
as agreed. with the following per-
centages: $4,000 to $500, three per
cent $500 to $4,000. six percent:
tc $4,000 fifteen percent; 100000 to
100000, twenty percent: $4,000 to
$4,000. % percent; 5000 to $50.
GEO. thirty percent; $4,000 to $50 600,
A. percent. incomes of from $1,000
900 to 100000 would pay a sur tax
of 20 percent and incomes over s5,-
100000 rs percent, which, added to
the normal tax, would make these
last named incomes taxable to the
extent of s. percent.
Chairman kitchn made this state
ment tonight:
I'VE changed the plan of payment of
the taxes by instruments at the sugges-
ton and request of the treasury depart
nent SO that one-thrd will be due when
the taxpayer makes his return. another
third within two months therea fter
and the remaining third two months
later TIL committee decided against
a rebate for cash payment of taxes.
The committee appropriated the SIS
100000 requested for the administration
of the revenue laws by Commissioner
Roper and authorized the deputy com
mlssioners of internal revenue 1t was
decided TO make a differentlal of 3 per
cent, IN favor of earned incomes as
against unearned The tax will be 10
per cent. on earned incomes and l3 per
cent, on unearned incomes. Cnearned
incomes means that part of the net in
come derived from dividends on pre-
terred stock, from interest, rentals, roy
altles and annuitles."
Mr.. kitchin indicated that he did not
expect the committee to resort to the
tariff in order to raise the total IS. 900, :
on,0C, though a subcommittee is cor.
sidering the proposal. The committee
agreed to a proposal by Representative
Rainey Of Illinois that the name of ev.
cry person making returns under the
income tax law be posted in county
courthouses in order that the pub,,,,
may know who have not made ret,rr,
me amounts will not be posted The
proposal of Representative Treadway OF
Massachusetts to put a tax on hin
boards was rejected