The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-07-31
10 PER CENT TAX
ON AUTOMOBILES
New Bill Will Also Include
Heavy Levy on Music and
Sporting Goods.
Low RATES FOR TRUCKS
Committee Agrees to Doubling
of Taxes on Theaters and
Amusements-Luxury
Tax Today.

Washington, July 3o.--A tax Of 10
per cent on the sale price OF ali auto
mobiles was written into the new reve-
nue. bill by the ways and mean COM
mittee today. Motor trucks. on ac-
count of their great usefulness in war
work, are to he taxed only per cent.
The tax is to be collected on tbs gross
sales of the manufacturer, producer or
importer.
Included also in the 10 per cent
schedule will be player pianos, grapno-
pones, monographs, talking machines,
sporting goods. including baseball bats,
golf clubs. fishing rods and reels. pool
and billiard tables. perfumes, cosmet-
les. tonics. proprietary medicines and
cameras. All OF these except cos
metics and proprietary medicines are
now taxed 3 per cent.
The automobile tax, according to
estimates submitted by the treasury
department. will produce about $780,
600, 900. The per cent tax now in
force is calculated to yield about s32,-
900. 900 during the current fiscal wear
In addition to the 10 per cent tax
agreed upon today. Chairman kitchiH
authorized the announcement that the
committee will impose another TAX
which will be collected from the user
of the automobile. This tax which has
been only tentatively discussed Will be
In the nature of federal license. col
lectihie from the user of the car In the
same manner as state licenses are now
issued Mr.. Kitchin declined to make
any prediction as to how high these
rates might run. although the treas
ury department has recommended a
scale OF from $50 to $50, according to
the cost price OF the car.
It was announced that the 10 per
cent tax was agreed upon without OPP
position.
The question OF tax on gasoline
has not been considered by the COM
mittee.
Other taxes agreed upon today by
the committee were a doubling of the
admission tax to theaters, operas. mo-
ton picture shows and similar places
OF amusement. The present tax is
10 per cent; under the revised schedule
II would be 90 per cent.
This tax applies to all admissions OF
ten cents or over. To get at the
smaller priced houses. the committee
tentatively decided to impose tax
OF one cent on all admissions where
the maximum charge does not exceed
seven cents. Under the existing law
and other amusements whose maxi
mum charge does not exceed Ave
cents are exempt from the tax The
new tax would exact one cent from
every admission up to and including
seven cents.
In deciding upon this tax. the COM
mittee took into consideration that
the seven cent or Ave cent show Is es-
sentially poor mans" show. But II
was felt that those who could not
afford to pay a greater admission than
seven cents would not be contributing
anything to the government as income
tax or excess profits tax anyway. and
1t was the consensus of opinion that
the patrons OF these cheaper shows
could well afford to contribute one
cent to the governments needs
The committee decided to place a
heavy tax upon all kinds of firearms.
including a prohibitive tax OF 100 per
cent on dirks. stilettos. sheath knives
and similar deadly weapons. The tax
on shotguns and rifles was fixed at 10
per cent. and that on revolvers and
pocket pistols at rs per cent. The
committee decided upon this high rate
on pistols with the idea Of discourag-
ing their use as far as possible.
Kitchin announced that the com
mittee tomorrow will take up the
luxury tax suggestions recently sub
unittsd by the treasury department.