New-York tribune., 1918-08-05
Framers of Revenue Bill
Get Two Plans for
Raising Funds
Amount of 1rnpost
Based on Capital
alternative Method Would
Be Available for Use
When Desired

WASHINGTON, Aug. "A strictly
ar profits tax, separate from all other
ssxes, will be pressed with renewed
vlgor this week in the House Ways
and Means Committee, engaged in
framing the $8,OO0,OO 900 revenue bill.
The position Of the Democrats and
Republicans, who have been trying so
far in the executive sessions of the
committee to win over the opponents
of a separate war profits plan, has been
strengthened by President Wilson's
declaration in favor Of heavy tax to
reach all war profiteers, and by the
fact that the excess profits and income
tax sections of the bill so far tenta-
lively accepted fall short by consider
ably more than 81 1,OO0,000,OO0 of the
$4,000 100000 allotted to the two sec
tions.
The committee has been discussing,
without conclusion, two main war prof
its plans. One is a superimposed war
profits tax, with a maximum of 80 per
cent on corporations having more than
100000 capital, designed to reach huge
corporation profits. It's author is Rep
resentative Green, of Iowa.
Alternative Plan
The other plan is an alternative for
the excess profits, to be substituted for
excess profits whenever the treasury
deems it likely to bring in more reve-
nue. than the excess profits tax in each
individual case. It's author is Repre-
sentative Crisp Of Georgia.
Even members of the committee not
yet committed to either the Green or
Crisp proposals concede that some war
profits plan is likely to be added to the
present draft of the bill. The Crisp
alternative plan is along lines followed
in England. 1t is q more detailed
proposition, as it is to supplant, if nee
essary, instead of supplement. the ex-
cess profits scheme, embodying ma
chinery necessary whether the Treas
ury should use either the excess
profits or alternative plan.
The Green superimposed war profits
plan. as revised to date, provides fer
= tax of 80 per cent on the net in
come of corporations having an in
vested capital of 100000 and not ex-
ceeding S350.0oo after the following de-
ductions from the net income: The
average net income for the years 1911,
1912 and 1913, and taxes upon corpora
tlons provided in other sectiops of the
bill.
Maximum of 80 Per Cent
After making the same deductions
corporations with invested capital be-
tween $350,00O and 100000 would be
taxed 70 per cent on the remaining net
income. and corporations with capital
IN excess of 100000 would be taxed
so per cent.
Congress will adopt some plan to
reach big corporations like the pack
ers, some copper companies and other
concerns very highly capitalized before
we started in with the present system
of income and excess profits" said
Representative Green to-day. "Talk in
New York that the excess profits taxes
tentatively agreed to by the committee
are not as high as had been expected is
like congratulating candidates on their
election before all the returns are in,"
The Hull subcommittee on luxuries
met again to-day and considered the
iuxurles recommendations, the main
features of which already have been
published. 1t will report tomorrow to
the full committee, which also is about
to review the whole hill