The sun., 1918-08-09
RESOLVES TO BOOST
EXCESS PROFIT TAX
House Committee Stands on Its
30 to 80 Per Cent.
Schedule.
RIFT WILL HEAR McADOO
Changes Motor Levy to Horse
Power Basis-Doubles Pres
ent Tobacco Imposts.
RIFT WILL HEAR McADOO
speciai DespofcA 10 THs sus.

fpecfdl Deap0ICh TO IHB DUN.
WASHINGTON, Aug. s.-The dispute be-
tween the Treasury Department and
tho Ways and Means Committee on the
nrooer tax on excess and war profits
,ook definite form to-day when It be-
c.me known that the committee now
sands unanimously for increasing the
cYcess profits taxes and adding the war
nrofts tax to be imposed as an alterna-
live In Individual cases where II would
raise more money.
Unless the Secretary Of the Treasury
can give some vital reasons for retain
ing the present low scale of excess profits
taxes It seems certain that the commit
tee plan will stand in the new revenue
Adopts Scale Definitely.
The Treasury is still demanding that
excess profits rates be left undisturbed
The committee definitely has decided to
place this tax on excess profits:
Thirty per cent on portions OF profits
in excess Of 10 per cent and not In ex-
cess OF 20 per cent Of the invested
capital.
Fifty per cent on portions in sxcess
OF 20 per cent. and not In excess Of rs
per cent. OF the invested capital.
Eighty per cent on portions in excess
OF IS per cent. of the invested capital.
To alternate with this plan the COM
,nittee is willing to adopt a war profits
tax OF so per cent on the excess OF
profits over profits in the pre-war period
q. Iel1-1s13 inclusive.
There Is not a man on the commit
tee but believes that the excess profits
rates must be raised above their pres
snt ngure," declared Chairman Kitch!n
to-day. The committee Is unanimous
on that point"
Mr.. Kitchin said tho committee did
not yet understand the attitude Of the
Treasury Department In desiring the
lower excess profits rates. Some of the
committee have estimated that the lower
rates would raise only half as much as
the rates tentatively written into the
new bill. They hope to have Mr.. Nc
Adoo before the committee before long
10 explain.
Tho committee decided tentatively on
tax OF 10 per cent. on the charges
paid for leased wires and telephone cir
cults. Members Of the committee were
unable to estimate how much money
would be realised from this tax.
New Tax on Foreign Freight.
Tentative decisions to impose the fol-
lowing new taxes were reached to-day ::
Three per cent. on the transportation
OF freight within the United States
which originates in foreign countries.
Six and half per cent. of the charge
for transporting oil in pipe lines in lieu
OF the per cent tax tentatively agreed
on previously.
Lowering OF the tax on group insur-
ance' to one-half the present rate.
Inclusion OF policies paid on the
monthly plan in the tax of 40 per cent
on the first premium paid Hitherto
only such policies taken on the indus
trial or weekly payment plan have been
taxed. The tax in all cases Is limited to
policies Of $500 and less.
Five per cent. Of the rentals received
by producers Of films. in lieu of the
present tax Of quarter cent. per linear
foot for raw Aim and half a cent per
linear foot for developed film. This Is
expected to increase tho revenue from
films materially.
Abandonment Of the tentative sched-
ule Of cigar and tobacco taxes which in
many cases were three times the pres
ent scale 'of rates and tentative adop-
ton Of a scale doubling all the present
rates
The automobile taxes to be paid by
owners OF cars were changed materially.
Instead OF basing the tax on the original
retail sale price Of cars a new scale of
taxes based on the horse power was
adopted tentatively by the committee
The tax on freight shipments which
originate outside of the United States
was decided upon by the committee
without serious opposition. 1t was
pointed out that shipments from Canada
under existing law can be transported
within the United States somewhat
cheaper than shipments originating in
side the country because American ship
ments have to pay the per cent. tax
under existing law. This was thought
to be unjust to American shippers.
The tax OF eight cents per hundred
dollars on insurance policies was left
undisturbed by the committee, but the
rate was cut to four cents on group in
surance. However, the largest group Of
employees Of any business who can be
insured at the lower tax would be rs.
Marine. inland, IRE and casualty in
surance tax rates were not disturbed.
remaining at ono cent on each dollar or
fractional part of dollar paid In pre-
miums
New Tobacco Schedule.
Doubling the existing tobacco taxes
will make the schedule as follows:
On cigars weighing less than three
pounds per 1000, So per thousand.
Weighing more than three pounds per
thousand and retailing at less than I'VE
cents each IS per thousand.
On cigars retailing at between and
cents each IS per thousand.
Retailing at between and Is cents
each Sl2 per thousand.
Retailing at 10 to 20 cents each SIC
per thousand.
Retailing at more than 20 cents each
$50 per thousand.
On cigarettes weighing less than three
pounds per thousand and retailing at
less than cents each $40 per thou
sand.
Weighing less than three pounds per
thousand and retailing at cents or
more each $40 per thousand.
Weighing more than three pounds per
thousand regardless Of retail price $3.50
per thousand.
On tobacco and snufr rs cents a
pound.
Schedule on Motor Cars.
Tho automobile tax tentatively
aaopted several days ago. amounting in
enect 10 a Federal license or excise
TAX Ia expected to yield much less
money In its new form. 1t had been
decided tentatively to impose tax
graduated on the original retail price.
~ was SHOWN that older models or
cars not worth nearly as much now
Out costing more originally than pres
ent day machines would pay too much
IN proportion to the actual value. The
new scale OF prices decided upon to-
day is based on horsepower and Is as
follows:
Cars Of twenty-three horsepower or
.ess $40 (the Treasury recommended
1l5).
cars OF twenty-four to thirty horse
power $50 Che Treasury recommended