Evening star., 1918-08-18
NEW REVENUE BILL
TO MEET DEMANDS
Chairman. Kitchin Says Meas
ure as Drawn WIN Raise
Eight Billions.

Eight Billions.
FEW CHANGES EXPECTED
. The now revenue bill upon which
the House ways and means committee
has been working since Congress re-
cessed early in July win raise q total
Of $s.ooo.ooo.ooo for the expensss of
the government in the present nscaI
year Chairman Kitchin of the COM
mittee announced when the committee
adjourned yesterday its sessions until
tomorrow.
1t is probable. Chairman Kitchin
said. that the bill will be introduced
this week and be taken up by the
House for consideration q week from
tomorrow.
The annou1cement that the revenue
TO DO obtained under the bill will
leaon the goal set by the Treasury De-
partment was made by Mr.. Kitchin
after he had consulted the commit
tees accountant. Changes in the
scneduies not as yet definitely nxed
in that event the COMMITTEES may have
70 resort to . customs tax and a
moor tax on tea, coffee and similar
products.
Change in Condition May Arise.
Changing conditions also may afrect
lne amount of revenue to be- obtainad.
me committees IL watching the out.
come OF the effort to pass q national
wartime prohibition measure, which
the Senate 10 to take up August W.
If a prohibition measure is enacted
revenues to be obtained under the bin
Will be decreased considerably.
The new tax on liquors may not be
until the bill IL reported
to the House, but It is understood TO
provide substantial increases on
drinks. bringing a total revenue Of
=. l.0oo.000.000 or more. The Honor
tax rates are being withheld from
to guard aRainst With
drawals of whisky from bond.
toe COMMITTEES yesterday finally ap-
proved the tobacco schedule, un-
nounced. In the 10 per cent tax Of
articles deemed iuxuries, above a cer-
tain price. 1t made the tax appIy to
women's waists in excess Of Si5, in
stead OF so as previously agreed to.
ana 70 women's hats at SIS instead
ot : dj.a aa5- "a motor boats and canoes were
yachts and pleasure boata but the
committee exempted motor boats and
canoes costing $50. or less the ey-
smpeion being to protect home-built
Tax on Personal Incomes.
Considerable interest ha. been
SHOWN In the normal tax on personal
incomes, and the committee announced
Section 2Io. That there snail he
!evied; collected and paid for each
taxable year upon the net income of
every individual normal tar, as fol-
"(a.) In the case Of a ettix.n Or
resident of the United States 10 per
cent of the amount of the net INCOME
In excess Of the credits provided IN
secuon zig; provided that upon the
nrst $1,000 Of this amount the rate
."tb.) In the case Of a nonresident
anen 10 per cent of the amount Of
the net income in excess OF the
credits provided In section 21s."
eesSt, seettSn 2lsi ai,os.as as asrssd to, reads:
normal tax only. there shall be al
lowed the following credits:
"(a) The amount received a. divi-
dends from a corporation which is
taxable under the corporation income
tax upon its net income.
"(b) Amount received a. interest
upon obligations Of the United States,
any state, territory or political sub
division or the District Of Columbia.
"(c) In the case of single person
q personal exemption Of $1,000. or
~ - - L.
or a married person living with hus-
band or wife. q personal exemption
Of $4,000. A husband and wife living
together shall receive but one per-
sonal exemption of $4,000 against
snsir sggregate net income. and in
personal exemption OF $4,000 may be
taken by either or divided between
them.
than husband and wife) dependent on
and receiving his chief support from
son is under eighteen years of age or
Is incapable Of self-support because
mentally or physically defective"
Rate on Uneaxned. Incomes.
The committee has agreed. BY n
close vote, to . diffefenffai Of 3 per
cent against mearned incomes and
has sent back to the Treasury tho
latfers draft for The purpose Of re-
drafting. with the probability Il may
be dropped on reconsideration n the
dlnerential stays in the bill. the PRES
ent per cent normal tax on incomes
under $4,000 annually might be made
per cent on uuearned Incomes and
per. cent on earned incomes, and the
normal tax Of 10 per cent on incomes
from $4,000 upward might be made
Is per cent on unearned and per
cent. or the present 10 per cent. on
earned incomes. . committee member
today explained.
Chairman Kitchin Last night sx-
planned that the committee had re-
ferred its decision in favor Of an ex-
cess profits tax Of 40 to 50 per cent,
after $4,000 exemption and per cent
deduction, to the Treasury for its ap-
proval He said the committee also
had communicated to the Treasury it's
action in dividing business into three
tion.
The committee has adopted q pro-
vision that In NO event will the excess
profits tax OF corporations having less
than $50, 900 capitalization exceed 20
per cent OF its net income. An EFFORT
will be made this week to apply the
same provision to the war profits tax.
U. s. AmMAN TAKEN BY HUNS.