The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-07-18
COMMITTEE STARTS
/ WORK Of DRAFTING
GREAT MONEY BILL
Eight Billions to Be Rails
ed by New Taxation
Measures.
DISCUSSION WARM
Levy on Personal Ser
wants Calls Forth
Widely Divergent
Views.
DISCUSSION WARM

Washington. July 17.--Actual work
of drafting the $4,000, 100000 revenue
bill was commenced by the ways and
means committee today. The COM
mittee met in executive session and
went over the general phases OF the
task of raising the greatest amount
of revenue the country has been call
ed upon to produce since the war be-
gan.
A skeleton draft OF the bill, prepar-
ed by Chairman Kitchin, was submit
ted to the committee and considered
in detail. No questions OF policy were
determined upon and no agreement
was reached as TO any of the subjects
which will be taxed. The committee
found itself handicapped by the lack
of definite information as to amounts
which may be raised from various
sources. Estimates OF this kind are
being prepared by the treasury depart
nient. but until they are received by
the committee. little progress can be
made in fixing the rates on any spe-
CHIC article. For this reason. the COM
u,ittee was compelled to adjourn un-
Ill Friday.
At the very outset of the commit
tees deliberations serious question
arose rs to the consti.utionality OF
some of the taxes already suggested
by the treasury officials. The so-cailed
luxury taxes recommended by the
department. were discussed at great
length and the right OF congress TO
levy such taxes. particularly upon
some of the articles in the treasury
list was debaxd freely. Several mem
hers of the committee expressed the
belief that some OF the taxes proposed
by the treasury would not be permits
sihle under the constitution.
This argument was raised In the
matter of the suggested tax on per-
onal servants Members OF commit
tee declared this would be unconstitu-
tionai, because 1t would be tax on
human beings Others suggested II
would be tax on labor and equally
violative of constitutional provisions,
The hardship which would be i'm posed
upon servants retained largely through
sentiment and not because Of actual
value OF the services was another point
raised.
The tax on servants was proposed
nominally for the purpose of taxing
the employment OF chautfeurs In pri-
waite service. but the discussion
brought out the opinion that the treas
diS ocphi NiiiSsit > sQESSStlOnS are TOO
broad
Similar views were expressed by
members of the committee in DISCUSS
ing other items on the treasury list
The recommendation for a heavy tax
on jewelry. on automobiles and gaso-
line were all discussed but no de-
cision was reached in regard to any
of them.
AT the next session OF the commit
tee it Is probable that the appointment
of number of subcommittee TO
work out different phases of the tax
system will be authorized.
Chairman Kitchin stated again to-
day that the bill. when completed, will
be revision OF all the revenue bills
now in effect. The income tax section,
now covered by two separate laws,
will be rewritten into one complete
measure. The provisions of existing
laws with regard 70 taxes on LIQUOR. ex-
cess profits and every other item of
the tax laws will be treated similarly.
As result. the tax laws will be
simplified and the administration will
be made less difficult.