Evening journal., 1918-08-19
INTERIM WAR TAX
TO BOOST REVENUE
New Levies May Take Ef-
feet When Bill Reaches
House
is OFFSET TO
THE LONG DELAY

taxes 10 be levied by the new revenue
law win go into effect from the date
Of the introduction OF the measure in
the House. While final action on this
question has not yet been taken by the
WAYS and Means Committee. it is in
accord with the sentiment OF almost all
members Of the committee. and PROB
ably will be decided upon as soon as
the excess profits tangle and the trou-
bles over liquor and soft drinks taxes
are adjusted
This action Of imposing interim
taxes Il is estimated, will make a df-
ference Of about s750O000OO in the re-
ceipts Of the Treasury. II appears I'M
nossihle 10 have the measure on the
statute books until after election-a
neriod of two months and half,
roughly. from the time Of the introduc-
fion Of the bill in the House.
Under the existing revenue laws the
return for this time would be ABOUT
s75O 600 600. and as the revenue bill now
heinc prepared is designed to raise
,,yice as much as existing laws, 1t IS
figured by members Of the committee
that S75OOOOOOO more will accrue TO I
The Government through having the
new taxes date from the time the bill is
introduced.
For the present the committee Is tied
m with the excess profits tax schedule, |
awaiting word from the Treasury on 1
the tentative rate suggested by the /
committee as a compromise This new 1
rafe would apply a tax Of 20 per cent.
TO the net income above the exemptions
and up to 20 per cent. OF the invested
capital, and a tax Of GO per cent. on the
portion Of net income exceeding ~ per
rent. Of the invested capital.
Mr.. McAdoo is away from Washing
ION over the weekend, hut is expected
back today. The exemptions OF $1,000
md net income equal 10 5 per cent. OF
he invested capital arc included in all
II the excess profits plans so far sug-
,ested
The Treasury Department has already
.iven the Ways and Means Committee
Is plans for the excess profits tax.
he Treasury plan starts the tax rate
I 20 per cent. but the GO per cent. tax
fould not be imposed except on the
ortion Of net income in excess OF 3j
or cent. Of the invested capital
settling this divergence OF opinion
etween the committee and the Treas
Try or rather between Chairman
litchin and Secretarq McAdoo, VIII
cave the bill so that the balance OF u
an be whipped into shape in snort
,rdcr. The necessity OF compiling
.eport to accompany the bill, which
Mr.. Kitchin probably designs TO do
,vrl take a day or two more.
Before the bin is ready to report 10 |
The House. the Senate may have acted
-avorably on the bone dry rider on the
'ood stimulation production measure,
md place the Ways and Means Com
miilce in the embarrassing position OF
having to rely on liquor taxes with |
which 10 round out the SS,OOOOOOOOO /
.u revenue. with the prospect amount /
ng dangerously close TO a certainty,
mat this source Of revenue will
Suddenly disappear.
Rather than delay the bill any longer
he committee will pass this problem
icnr the senate Finance Commit
re 10 struggle with. u is an open Sc
ret that the Finance Committee as a
ule has little use for the revenue bills ,
Which must Of necessity originate In
he House. and generally changes them
o such an extent that they are practi- I
ally unrecOgnizable.
With a billion dollars OF additional 7
axes to raise il the liquor taxes are /
cndered useless, the Finance Commit
ee will have a bombproof excuse for
blowing its usual custom in this in
lance The Senate can do anything u
,leases with the House schedules on /
he plea that il is necessary TO raise
mother billion dollars.
The imposition OF higher import /
iuties as a part Of the revenue law.
suggested by Representative Fordney
Mich, ranking Republican member OF
he committee, is taken by the Demo-
rats as rather a joke. They have not
NE least intention Of taking such ac-
ion, they say. and the appointment OF
, Subcommittee TO consider the sug-
yestiOn is nothing more than a sop 90
'lr. Fordney.
As Representative Kitchin is chair
nan Of both the fun committee and the
Of five appointed 10 in
estigate the Fordney question and as
he full committee is in the throes of
rying TO wind up writing the new bill /.
here is an excellent excuse for falling
o convene the subcommittee. which is /.
O meet only at the call OF the chair
nan .
One other problem which may be !
ovcd before the bill is given 10 The ,
ouse is the extension Of the list OF I
ixury faxes. Representative Hull. Z
Tenn and the other members Of the .