The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1918-09-12
REAL WORK ON
REVENUE BILL
STARTS FRIDAY
House to Consider Exemption
of Liberty Bonds From Tax
ation-Debate Still on.

WASHINGTON, Sept. 12.-While
| the House continued general debate
today on the sS.OOO,OOO,O0O war rev.
enue measure leaders agreed to be
gin real work on the bill and amend
ments Friday and at the same time
pass the new bill urged by Secretary
McAdoo to facilitate sale of Liberty
ponds by making a larger amount of
these bonds held in individual hands
exempt from income surtaXes.
Majority Leader Kitchin privately
estimated that the new bond legisIa-
ton would reduce the revenue yield
about $50,00O,000. No revision had
Deen planned, he said, to make up for
the loss.
The Ways and Means committee
considered this measure and arranged
to hear Assistant Secretary Letting.
Well today. With prospects of little
or no opposition the committee ex-
poets to pass the bond bill Friday un.
der an arrangement made for COOP
Grafton by Senate leaders
Exemption on Liberty Bonds.
AS proposed by Mr. McAdoo, in
stead of the present law exempting
from income surtaxes bonds I'D to
$4,000 owned by any individual or cor
poration. the new bill would exempt
$4,000 of the new fourth loan and
$4,000 of the second and third issues
of the converted securities of the first
I issue.
A one per cent tax on general mer-
chandise sales, which he said would
raise between s3,O000OO,0O0 and s4.-
000.OOO,OOO, was favored by Represen-
tative Sterling, of Illinois, Republican,
while Representative Merritt, of Con-
necticut, Republican. declaring the in
heritance tax confscatory, also sug-
gested that corporations dividends
converted into Liberty bonds should
be exempt from the per cent tax
placed upon undistributed dividends.
Representative Sloan, Of Nebraska,
Republican Ways and Means member,
criticized the absence of tariff taxes,
and also failure of the Administration
to convert allies loans into bonds.
Taxes on, municipal bonds, against
which Mayors of several cities are re-
ported to be planning a protest, were
attacked by Representative Madden,
of Illinois, who questioned their con-
stutionality
Theatre Men Protest.
Mr. Madden also predicted the CO.
operation provision making income of
dividends received from other corpo-
rations would not stand a Supreme
Court test, in view of precedent de-
cisions already made.
The plan for a new Tax Advisory
commission to. aid in administering
the law was praised by Representa-
tive Dixon. of Indiana. a Democratic
member of the Ways and Means COM
mittee.
Theatrical men headed by Henry w
Savage, Marc Klaw, and Winthrop
Ames Of New York, staged vigorous
protest against the proposed doubling
Of the admission taxes in the new rev.
enue bill before the senate finance
committee Wednesday.
"Whe you come to double the tax
on admissions we are all very appre-
hensive.' Mr.. Klaw told the commit
tee. I'VE are fearful that you will leg
islate the smaller managers out Of
business. 1t is all very we'll to say
that the New York theatres can stand
any tax, but New York is not the
nation.
Our experience has been that the
theatres throughout the country have
been hard hit by the war. We are
willing to go the limit, but don't make
it impossible for us to do the big
things and the fine things we want to
do in connection with the war;