Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-09-04
WAR TAX MEASURE
/ So FRAMED AS TO
| HIT ALL POCKETS
New Revenue Bill Intro
duced in House by
Chairman Kitchin.
MANY SOURCES AND OBJECTS
& OF TAXATION ENTIRELY NEW
War Profits and Excess Profits
to Yield Aggregate of
$3,2oO,0O0,0OO.
INCOMES GIVE SI,4s2. .1sG, 900
All Persons Earning $4,000 or Over
Must Pay Occupational Tax
OF $40 Year.
MANY SOURCES AND OBJECTS
4 OF TAXATION ENTIRELY NEW
INCOMES GIVE s1,4s2, ,,so, 900
All Persons Earning $4,000 or Over
Must Pay Occupational Tax
OF $40 "A Icar.

rs WASHINGTON, September 3.-The
trcvenue bill. officially estimated TO pro-
iduce 3S.lsc.4e2.0oo in twelve months
Following it's passage. was introduced
Ein the House to-day by Chairman
tKitchin, of the Ways and Means Com
smittec. II represents tho unanimous
judgment OF the twcnty-,hrec members
OF the committee as TO the best method
OF financing the war.
Consideration of the bill Till he con-
menced in tho House Friday and viii
run until Saturday OF next week. when
MIR. ktchin hopes to be able TO oh
tain the final vote. No opposition of
any consequence IL likely to be made
to the bill. but many OF the members
OF the committee as we'll as other mem
bers OF the House. have asked TO be
heard on some of it's provisions
The bill will hit every pock etbook.
tax practically every industry and levy
upon every form OF business and occu-
patton Of the people of the United
States. 1t is the stinest taxation bill
ever presented TO the people. but it's
Justification is found ia the necessity
OF the times the carrying on OF the
war and the payment of the mounting
expenses OF the United States govern
ment.
MANY NEW SOURCES
AND OBJECTS OF TAXATION
Many sources ana OBJECTS OF taNattOn
H. the bill new 10 the people OF
ihis country Such as these are the 10
per cent TAX on clothing. on carpets,
picture frames, travelling equipment.
umbrellas, kimonos and footwear own
lcrs VIII pay tax Of 10 per cent on
4thcir automobiles. in addition TO the
they will have to contribute cents on
every gallon OF gasoline used for rum
ming the car. Pianos, pipe organs, cleo
trio fans, bathing suits. furs, scu,p-
A nj n
boats are some OF the other new things
on which tax is TO be levied and col
lccted.
In the report OF the committee ac-
companyinS tho bill. it is shown that
the largest revenue which is expected
TO be derived from the new taxes will
profits tax. The yield from these taxes
estimated at s3,2op, 100000 The next
largest Will be the individual income
IAN, wnich lis expected TO produce ST.
4s2.lS6,o0o. Then comes the tax on
beverages. which is 10 yield sll37.-
OTHER ITEMS WHICH
WILL PRODUCE REVENUE
Other estimated revenues from The
new taxes are as follows: corporation
income tax. ss5i,000.0 .000 estate tax,
Sllo.O0O.0 600: freight transportation
S.5.ooo.oo0: passenger transportation.
$4,000. 600; express iransportation $50
100000; oil in pipe lines. S4,55O,000:
Pullman seats and bcrths So 600, 0o0:
telegraph and telephone messages. SIG
100000. insurance. SI2.0Oo.00v: admis-
Sl0ns Smo, SioooGo'9oe club dues. 5000
sl23.7a0.0O0; jeweiry, sporting goods,
etc, sso,0o0.0O0; luxurtes at 10 per
cent. SSs,!6o. 900; luNuries at 20 per
yachts and pleasure Boats. 81 900. 900;
stamp taxes. $4,000. 900: tobacco. s3a0
$4,000: capital stock. $50, 600, 600: brok
order sales. !5,o0Oo00 bowling alIevs
billiard and pool tables, $1,000. 900: rid
ing academies. 0,00O; business !iccns.
tax, S10.o00.000; manufacturers OF cir
ers and cigarettes, $1,000, 900; mani
facturers of tobacco. $50 900; use of au
tcmobiies and motorcycles, ss72aS0. 900
~ Home or the principal taxes in the
Income tax. as fixed on the earnings
OK inalviouais. at the rate OF II per
cent normal tax and supertaxes com
mencing with . per cent on 5000 in
comes and running up 10 the maximum
or or 90 per cent on incomes of s5oOO,OOo
an exemption OF $4,000. as against 81
400 In the existing law. and an addi-
,.onal 1900 for each child under cieh
teen or children above that age who
arc dependent. Single men receive an
exemption OF $1,000. The income tax is
computed on the taxable income after
expended for living expenses. amounts
paid for new buildings or as premiums
on life insurance policies are not al
lowed. In gross income Is not to nc
included the proceeds or any life
insurance policies. nor the value OF
property acquired by bequest
CORPORATION INCOME
TAX IS PER CENT OF NET
The corporation Income tax is is per
cent or the amount OF net income In
excess or credits for war profits or ex-
@ less pronts taxes; on the amount Of
only IL per cent is to be collected This
,S ,io aesished ,i as an incentive TO corpora
lions TO distribute their profits.
Of ha
amount OF net income In excess OF the
$1,000 nat exemption. and an amount
prewar period OF 1911 1912 and 1918.
plus or minus as the case may be, 10
per per cent Of The invested capital with
prewar period. If the corporation was
not in existence during the whole OF
any one calendar year during the pre-
the prewar period the war profits credit
Is to consist of the $4,000 exemption
ana ~ per cent of the invested capital
lions are not entitled to the $4,000 eX-
emption.
The excess profits tax carries spcci-
nc exemption OF $4,000. and per cent
OF the invested capital: the tax is 70
be 80 per cent of the amount of net In
come not IN excess Of IL per cent of
amount OF net income in excess of Is
per cent and not over 20 per cent of the
invested capital, and 70 per cent OF the
the invested capital.
DEFINITION OF INVESTED
CAPITAL IS REWRITTEN
Tho definition OF invested ca apital has
been entirely rewritten In the bill en-
tangible property" is defined as mean
Ing patents. copyrights, secret pro-
cesses, and formulae. good will, trade
marks. trade brands. franchises and
other like property. Tangible proper
ty consists of stocks, bonds, notes,
continued on Seventh Page.)