New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-09-04
Tax Bill Re-
verses Policy of Leaving
War Debts to Posterity
Equal to One Half
OfU. S. Net Income
Excess and War Profits
Levies to Furnish More
Than $4,000, 900, 900
Especial Dispatch to The Tr1bune)


WASHINGTON. Sept. g. The worlds
largest revenue bill was introduced il,
the House few minutes after noon to-
day by Chairman Kitchin of the Ways
and Means Committee, with two or
three sentences of commonplace re-
marks to the effect that it would be
called up for consideration on Friday.
1t imposes rates of taxation that arc
in some instances many times greater
than those of the present laws, and it
purposes to raise SS,1S2, ,492 900 yearly,
which is twice the present revenues an,
twelve times those of later pre-war
years, and about one half the present
national net annual increase OF wealth.
The report accompanying the bill sets
forth the principles governing the COM
,rittee in its deliberations and reviews
the bill! section by section. diyesting
and interpreting it, and making CON-
PARSONS both in provisions and stats-
tics with the present laws, which it
largely replaces with a sirgl, code.
The bill itself fills 1870 pages of the
regular bill form and embraces about
$4,000 words
The report is unanimous in recon-
mending the passage of the BILL but
one or two members of the committee
reserved the right to oppose or amend
particular features. The unanimous
report means that there will be no con
certed opposition to the bill, party or
otherwise, and ten days are expected to
see it through the House
Problem Explained
Before reviewing the bill in detail
the report offers as sort of preface
to what follows a brief explanation of
the problem confronting Congress in
drafting an adequate revenue measure
In determining our fiscal policy for
financing the war the first question
that must be determined is, says the
report. what per cent of our total ex-
penditures shall be financed by taxa
tion and what per cent by bonds? Your
committee has determined the proper
tlon of the cost of the war that should
not upon the basis of previous expert.
ence, for there is no analogy in history,
but upon a careful consideration of the
effect of the fiscal policy upon the
morale of the people, upon the inf1a-
tlon of prices, upon production, and
with reference to the relative ability
of the people to pay taxes now and
after the war
On June 5 the Secretary Of the
Treasury advised your committee that
the probable expenditures for the tis-
cal year ending June 30, 1919, would
be about $24,000,O 100000 and recon-
mended that onethird Of this amount
be raised in taxes, or $4,000 900.
On July Is Mr.. Sherley, chairman of
the Appropriations Committee of the
House, confirmed the estimate of the
Secretary of the Treasury and set out
in detail the appropriations for this
fiscal year, the total of which amounts
to $24 1925, ,561 ,427.67, exclusive of con-
tract horizations.
At the beginning of the preparation
of the new measure your committee
accepted the fiscal policy suggested by
the Secretary as sound, and determined
to prepare a new revenue bill that
period $s.00O.000,Oo0. In making the
decision to recommend that one3third
of the expenditures for the current
fiscal year be raised byetaxes and two
thirds from the sale of bonds, your
committee has been guided by condi-
tions existing at the present time.
While your committee makes this
recommendation for the current year, it
realizes that no fixed policy as to the
relation of taxes TO bonds for the
future can be determined at this time
and that the amount that should be
raised by taxation in any given year
must necessarily be determined after
due consideration is given to bust
ness and financial cvonditions ex-
isting in such year. Your committee
further adopted the policy that so far
as practicable the $4,000, 100000 should
be raised from taxes OH incomes, ex-
cess and war profits, and luxuries and
scmi-luxuries.
Throughout the preparation of the
measure your committee has endeav
ored to distribute equitably the new
tax burden and to levy the taxes in
such way that the burden should be
met by those most able to pay. Your
committee has endeavored to wipe out
all inequalities in the operation Of eN-
istng law and recommends the repeal
of the major portions Of the revenue
acts of 1916 and 1917 in order that the
existing internal revenue laws SO far