The sun., 1918-08-19
New Levies May Take Eff
feet When Bill Reaches
House.
OFFSET TO LONG DELAY
Majority of Committee Favor
able to Scheme of Early
> Imposts.
SpeciaI Despdich to TIE SuN.

Special Despdfch 10 THE Sun.
WASHINGTON, Aug l8.-All taxes un-
Der the new revenue law will go into ef-
feet from the date OF the Introduction Of
the measure in the House. While final ac-
tion has not yet been taken by the Ways
and Means Committee, II is in accord
bers OF the committee, and probab will
be decided upon as soon as the excess
profits tansle and the troubles over
liquor and soft drinks taxes are ad-
justed.
This action of imposing interim"
taxes, II is estimated, will make a diff
ference OF about 50.o0o. 900 in the re-
ceipts Of the Treasury. 1t appears i'm
possible to have the measure on the
statute books until after election-a
period Of two months and half.
roughly, from the time Of the introduce
ton OF the bill in the House.
Under the existing revenue laws the
return for this time would be about
5000. 900. and as the revenue bill
now being prepared is designed to raise
twice as much as existing laws. ii Is
figured by members of the committee
that s750.000,000 more will accrue to
the Government through having the new
taxes date from the time the bill Is in
troduced.
Excess Profits Hitch. -...
For the present the committee Is tied
up with the excess profits tax schedule.
awaiting word from the Treasury on
the tentative rate suggested by the COM
filttee as compromise This new rate
would apply tax OF 20 per cent. to the
net income above the exemptions and
p 10 20 per oent. of the invested clpi-
tai, and tax of so per cent. on the
portion OF net income exceeding 20 per
cent OF the invested capital.
Mr., McAdoo Is away from Washing
ton over the week end, but Is expected
back tomorrow. The exemptions of
$4,000 and net income equal to per
cent OF the invested capital are included
in all of the excess profits plans SO far
suggested.
The Treasury Department has already
given the Ways and Means Committee
its plans for the excess profits tax. The
Treasury plan starts the tax rate at 20
per cent, but the SO per cent. tax would
not be imposed except on the portion Of
net income in excess of S3 per cent of
the invested capital.
Settling this divergence OF opinion be-
tween the committee and the Treasury,
Or rather between Chairman Kitchin
and Secretary McAdoo. will leave the
bill so that the balance of 1t can be
whipped into shape in short order. The
necessity Of compiling a report to ac-
company the bill. which Mr.. Kitchin
probably designs to do. will take a day
or two more.
Bone Dry Order q Problem.
Before all the preliminaries are
finished the Senate may have acted
favorably on the bone dry rider on the
tood stimulation production measure.
and place the Ways and Means Com
mittee in the embarrassing position of
having TO rely on liquor taxes with
which to round out the $4,000. 900, 900
10 revenue. with the prospect. amount
ing dangerously close to a certainty,
mat this source of revenue will sud
denly disappear
Rather than delay the bill any longer
'ne committee will pass this problem
A!ons to the Senate Finance Committee
" struggle with. 1t Is an open secret
mat the Finance Committee as a rule
mas little use for the revenue bills which
must OF necessity originate In the House,
ana generally changes them to such an
extent that they are practically unrec-
OgnIzable
With a billion dollars OF additional
"hes to raise IL the liquor taxes are
rendered useless, the Finance Commit
.o VIII have a bombproof excuse for
'o"o"ins its usual custom in this in
sAic' The Senate can do anything
pIeases with the House schedules on
she plea that 1t Is necessary to raise
another billion dollars.
Inc imposition OF higher import duties
40 part Of the revenue law. suggested
representative Fordney (Mich.),
Shhlhg Republican member of the COM
m.t'ee' II taken by the Democrats as
a'nel joke They have not the least
Intention Of taking such action. they say,
a"u 'he appointment. Of a subcommittee
consider the suggestion Is nothing
1"re man a sop to Mr., Fordney.
d" REPRESENTATIVE Kitchin Is chair
mSn OF Doth the full committee and the
sHocohm'ttee OF Ave appointed to in
s"sa,e the Fordney question and as
e iu'l committee is in the throes Of
Ing TO wind up writing the new bill
,"ere Is an excellent excuse for failing
convene the subcommittee, which is |
~ meet only at the call OF the chairman. |