The Washington herald., 1918-09-04
.$S,1S2,492,OO0.
IS EXPECTED
BY TAX BILL
Chairman Kitchin Intro
duces New Revenue
Measure in House.
EVERY AMERICAN HIT
Many Novel Sources and
Objects Of Taxation In
cluded in Draft.
EVERY AMERICAN HIT

The\revenue bill, officially esti,
mated to produce $8,r82,4 ,4o2,o 900 in
twelve months following its pass
age, was introduced in the House
yesterday by Chairman Kitchin OF
the Ways and Means Committee.
II represents the unanimous judg-
ment of the twenty-thrce men,
bers of the committee as to the
best method Of financing the war.
Consideration 70 the bill will be
Consideration for the bill will be
and will run until Saturday OF
next week, when Mr.. Kitchin
hopes to be able to obtain the
final vote. No opposition of any
consequence is likely to be made
to the bill. but many of the men,
bers >of the committee, as well
as other members of the House,
have asked to be heard on some
of its provisions. E.A. st
rHits Every Peckethsel-.
The bill wili hit every pocketbook.
tax practically every industry and
levy upon every form OF business
and occupation of the people OF the
United States. II Is the stiffest tax
alton bill ever presented to the peo-
pie, but its justification Is found in
the necessity of the times, the car
rying on of the war and the pay.
ment of the mounting expenses OF
the United States government.
Many sources and objects of taxa.
| tion in9 the bill are new to the peo-
pie of this country. Such as these
are the 10 per cent tax on clothing
! on carpets. picture frames, travel
ing equipment. umbrellas, kimonos
and footwear. They will pay a tas
| OF 10 per cent on their automobiles
in addition to the manufacturer
tax Of 5 per cent. and they will
have to contribute cents on every
! gallon of gasoline used for runnin 2
the car. Pianos. pipe organs. cleo
! trio fans. bathing suits, furs. sculp-
poiAlAiiSos ana motor
boats are some of the other new
things on which tax is to be levied
and collected.
Three Billion From Fronts,
In the report of the committee. ac.
/ companying the bill. it is shown thai
the largest revenue which is expected
to be derived from the new take,
VIII come from the war profits and
excess profits tax. The yield from
these taxes is estimated at &. 200 On1'
uOV. The next largest will he IN.
individual income tax. which is OK.
| pected to produce s1,4S2, ,lss, 900 Their
comes the tax on beverages wbirl
| Is to yield sl.lS7OOo0O0.
some Of the principal taxes in tn.
bill are as follows:
income tax on the earnings OF indi.
Nlduals. at the rate of Il per cent nor.
mai tax and supertaxes comencins
with ? per cent on 5000 incomes anf
running up to the maximum of & ne,
cent on incomes OF 5000 900 and over
Married men are to receive an exemn.
ton OF 2,0Ho as against 5000 in m,
existing law. and an additional son
/ for each child under IS or cbiIdrer
| above that age who are dependent
! Single men receive an exemption n
$1,000 The income tax is computed or
the taxable income after ali deduc.
| uons have been made: money expend
| ed for living expenses. amounts pait
for new buildings or as premiums OF
| life insurance policies are not allowed
In gross income is not TO be included
the proceeds of any life insurance pol,
| icies. nor the value OF property ac
| uuired by bequest.
Corporation Levy Hisb.
The corporation income tax is 1s ne
cent of the amount OF net income 4,
excess Of credits for war profits or ex
cess profits taxes; on the amount O
net income distributed to stockholder
/ only l2 per cent Is to be collected
| This Is designed as an Incentive t,
| corporations to distribute their profits
War profits tax. so per, cent of tn
amount of net income in excess of tn,
! s.. 900 fat exemption, and an amour
equal to the average net income TO
| the pre-war period of 1911, 1912 and 1911
plus or minus, as the case may be
| 10 per cent of the invested capita
Withdrawn or added since the close o
| the pre-war period. II the corpora
| ton was not in existence during tn
: whole of any one calendar year dur
ing the pre-war period, or II It had n
net income for the pre-war period
! the war profits credit Is to consist o
! the 1900 exemption and 10 per cen
I OF the invested capital for the tax
able year Foreign corporations ar
not entitled to the s3,s00 exemption.
Dehnitions In Draft.
The excess profits tax carries
specific exemption of $4,000, ad eigh
per cent of the invested capital; tn
tax is to be thirty-five per cent o
the amount of net income not i
excess of fifteen per cent of tn
invested capital, fifty per cent o
the amount of net income in exces
4 OF fifteen per cent and not owe
twenty per cent OF the investe
capital. and seventy per cent OF tn