The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-07-19
HIGHER TAX ON
NORMAL INCOMES
Reduction of War Profits by
Price Fixing Calls for
New Schedule
PROBLEM CONFRONTS
MAKERS OF NEW LAW
Forecast of 1918 Finances Said to be
Needed Before Congressional Com
mittee Can Proceed Intelligently
With Framing of Revenue Measure.

WASHINGTON, July 19.-Prepared
to begin the actual drawing up of the
new tax law, the House ways and means
committee was confronted with prob
lem which must be worked out first
Probably the drafting of the bill will
not begin for two more weeks. 1t is
probable that one feature will be a con-
siderable increase of the normal income
tax rate owing to the reduction of war
profits by price fixing
Using the skeleton of the last rev.
enue law, the committee would first
have to deal with income taxes and SUI
pertaxes. The committee will require
the final figures from the Treasury de-
partment on the income taxes of 1917
and an accurate forecast of the person
al and corporate incomes for 1918 in
consequence.
A few members of the committee
| thought this would be simple. 1t was
| the general impression that it was de-
sired to raise twice as much money in
1.-THE future from income taxes and that
merely doubling the rates would solve
the problem. This is not so, as the
members are convinced.
The only thing approaching an esti-
mate which the committee has received
has been from Chairman Taussig of the
tariff commission, who is also a mem
Der of the committee charged with fix.
ing prices. In touch closely with the
factors which will effect incomes during
the war, both corporate and personal
DIR. Taussig declared that the price
fixing activities of the government anC
other clements would reduce the tota
1918 income below that of 1917.
There is no disagreement among The
committee that as a result the norma
tax of per cent on incomes will have
to be increased The extent of the in
crease cannot be settled until the treas
urv figures for last year are received
and forecast can be obtained.
Some members eontended for a nor
: nal tax in the neighbprhpodf of that i'm
posed by Great, lBBgitainE30 per cent
But so much opposition developed tina
, it is safe to say positively it will no
approach that amount. ''af "3.i
Government price fixing, man
members believe, is likely to reduce yer
materially war profits or so-called eS
cess profits. Incomes from that source
I no matter how high the rates are made
! probably will be decreased. This fac
I was pointed out to the committee.
!, Under the price fixing which has bee
I done already, it has been demonstrate
g that some low cost industries, unde
government prices, have been able t
$ make enormous profits. Adjustment Q
i the inequalities revealed by the FEEDER;
|, trade commission is certain to folio
in a short time, the majority of tn
s committee believes.
g This, and the fact that while tt
d American taxes on lower incomes al
d below those of Great Britain, America
5. excess profits or war profits taxes mouI
II very fast and pass the British rate at
e comparatively low figure, has served
II convince MANY of the committee tn;
IS the bulk of increased revenue mu
t. come from increased normal and a som
what increased supertax on incomes.