Evening star., 1918-08-27
'TYPEWR|TERS NOT
|NLUXURY CLASS
Eliminated From Revenue Bill
Because They Are Govern
ment Necessities.
MEASURE NEARLY READY

Typewriters will not be subject to
the luxury tax in the $4,000. .000.0 900
revenue bill. The House ways and
ly subjected them to a 10 per cent tax,
has eliminated them altogether from
the tax on the ground that they are
needed for the government. The COM
mittee was advised that acting under
a priorities order by the government
no new typewriters are to be sold to
Iany one except the government until
all the orders of the United States
government and the allies have been
hlled.
The government, 1t was stated. pays
a fat price of s62.50 per machine for
standard makes.
Wear and tear of business and de-
pletion and exhaustion of what are
known as hazardous enterprises are
provided for in the new bill. In COM
putting net incomes of corporations.
individuals and partnerships fhe bill
allows deductions of a reasonable al
lowance for exhaustion. wear and tear
of property used in trade or business.
Oil and Gas Production.
In the case of oil and gas wells
tion in flow and production is author
| Iized. This would be based not on the
Extraordinary fow of oil or gas from
these wells, but on the normal regular
mines a reasonable allowance is au-
|thortzed for depreciation of improve
|ruents- In buildings. machinery, equip
ment or other facilities for govern
nent contract work a reasonable de-
|duction is to be permitted for amor
tization Of the cost of these facilities
ff the taxpayer has paid the costs
All these allowances are to be de-
termined upon by the Treasury De-
partment according to the peculiar
|erty, under rules and regulations
(which the department is to prescribe.
Where there are leases involved. the
deductions authorized in the bill are
to be equitably apportioned between
the lesser and the lessee.
Mr.. Kitehin to See Mr.. McAdoo.
Differences between the ways and
means committee and the Treasury
Department as to the levying of a
d per cent differential on unearned
incomes are expected to be composed
at q conference today between Chair
man Kitchin of the committee
and Secretary McAdoo. The contro-
'versy over this phase of the bill is
Understood to be the only obstacle to
completion of the measure prepara-
tory to its introduction in the House
fthe last of the week.
The committee has tentatively
agreed upon 10 per cent tax on
Earned incomes and q tax of Is per
.cent on unearned incomes. Secretary
McAdoo has contended that foilure to
fix the normal taxes on earned in
comes as high as IL per cent may
fmperil the success of the coming lib
.erty loans
oincident with negotiations started
fn the Senate yesterday between pro-
hibition and anti-prohibition leaders
10 postpone the effective date of the
wartime national prohibition meas
lure, to be taken up soon, provisions
Of the revenue bill dealing with taxes
Dn Intoxicating liquors became known
Rejected by Party Vote.
The session Of the committee yes
terday was marked by an attempt by
Representative Moore, republican, of
Pennsylvania to attach to the bill
an amendment authorizing the ap-
|pofntment of joint congressional
.committee to cooperate with the
President eliminating waste and ex-
.travagance in the conduct OF the
war.
The plan, which would have author
tzed a joint committee of six mem
|bers of the Senate and seven members
Of the House to confer with the Presi-
.dent and heads Of departments on all
matters relating to war expenditures,
reporting to Congress, was rejected
SS SS... .h' committee 0s S''' party
Secretary McAdoo's Contention.
In the controversy on the unearned
Income differential. Secretary McAdoo
has contended that failure to make
the normal taxes as high as IL per
cent on earned incomes derived from
labor and personal exertion may i'm
peril the success of the next liberty
loan The committee has fixed the
rates at 10 and 13 per cent, but 1t has
been stated opinion is against writ
ling into the bill any provisions which
might endanger the liberty loan. Both
the Treasury and the committee are
understood to have agreed that the
differential Is not to apply to incomes
below. 81 900 or above 100000.
THE committee discussed number
of things yesterday. including a pro-
vision regarding inadmissible assets
. in the calculation Of capital under
UIn6 excess pIOAlS l64+ SudlEIudI
Kitchin said at the close of the ses-
sion. 'Inadmissible assets include
stocks and bonds other than United
states obligations from which in
come and dividends are not used in
Icomputing invested capital"
The bill as tentatively agreed upon
provides that borrowed capital to the
extent that it is invested in COM
monty termed inadmissible assets
may be credited as part of the in
vested capital. The committee prob
ably will modify this provision to
meet the objection raised in the COM
mittee that 1t would permit compa-
nies with large bonded Indebtedness
to carry municipal and other bonds
and thus obtain unfair credit for an
over amount of invested capital.
The schedule for the taxation of
beverages proposes that all distilled
spirits, either in bond or produced or
imported, shall be subject to a tax
of S440 per proof gallon. or per wine
gallon, II below proof. Should the dis
|tilled spirits be withdrawn for man
ufacture or production the tax would
be doubled.
On imported perfume containing
distilled spirits a tax of $3.50 per
wine gallon Is proposed. A rectifier's
T. .