Omaha daily bee., 1918-08-18
EIGHT BILLION
T0*.:BE RAISED
BY new BILL
Tea and Coffee Taxes Will Be
/, Included If Required to
- Obtain Total Asked
J., by Government.
By Associated Press.

By Associated Press.
Washington, Aug. H.--The ne,
revenue bill will raise total of So
000,000,000 for the expenses of til
government in the present fiscal yea
Chairman Khchin of the house way
and means committee said when tn
: committee adjourned. It is probable
Chairman Kitchin said, that the bill
will be introduced next week and b
taken up by the house a week fror
Monday.
Changes in the schedules not as ye
definitely fixed may lower the tota
and it was said that in that event tn
comlittee may resort to customs ia,
and floor tax on tea, coffee and sim
ilar products. l~,.
Changing conditions also may af
feet the amount of revenue to b
obtained. The committee is watchin,
the outcome of the effort to pass
national wartime prohibition measure
which the senate is to take up Au
gust "a. If a., prohibition measure i
enacted, revenues to be obtained un
der the bill will be decreased con
siderabiy,
Liquor Taxes Increased.
The, new tax on liquors is under
stood to provide a substantial in
crease on whisky and, other liquors
and soft drinks, a total revenue, O
$i0o0,Q00,000 or. more. The liquo,
tax rates are being withheld from
publication to guard against with
drawals. of whisky from, bond. Th.
committee finally, approved the to
baeco schedule unchanged from rate.
heretofore announced.
in the 10 per cent tax of article:
deemed luxuries above certain
price it made the tax apply to wo
mems waists II, excesssofa SIS, insteac
Of $40 as previously agreed to. ane
to- wotden's hats at SIS instead o.
SIS. Motor boats and canoes were
addedFto the 10 per cent tax on-yacht.
of, pleasure boats, but exempted mo-
tot boats and canoes costing $40. OF
less, the exemption being to protect
homesbuilt craft i ~ -.
a ar. Income Tax Schedule Z,
Considerable interest has been man.
Tested in the normal tax on personal
incomes and the committee an
nounced the text of the schedule as
follows:
That there shall be levied. collected
and paid for each taxable year upon
the net income of everE,individual a
normal tax as follows:'.f ii
"(A)-In the case OF citizen or
resident of the United States 10 per
cent of the amount OF, the net income
in, excess of the credits provided in
section ZIG; provided that upon the
first $4,000 OF this amount the rate
shall be 5 per centun. s.. -.
H(B)-fn the case of a non-resi-
dent, alien 10 per cent of the amount
off the net income in excess of the
credits proyided>ir section '2l6. t".s
, h.xsa Credits Allowed. .,v. ,......
""Section 2l6 as agreed to reads:
"Credits allowed: For purposes of
normal tax only, there shall be al
lowed the following credits
"(A)-The amount received as divi-
dends from corporation which is
taxable under the corporation income
tax upon its net income.
"(B)-Amount received as interest
upon residents of the United, States,
any state, territory or political sub
division, or the District of Columbia.
: "(C)-ln the case of single per-
son, personal exemption ofs$l 900
or in the case of the head of fam
lily, or . married person living with
husband or wife, personal exemp-
ton Of $1,000. A husband and wife
living together shall receive but one
personal exemption of $1,000 against
their aggregate net income and in
case they make separate returns the
personal exemption of $1,000 may be
taken by either or divided between
them. r:1.'
! "(D)-Two hundred dollars for
each person (other than husband and
wife) dependent on and receiving his
chief support from the taxpayer if
such dependent person is under 18
years of age, sor.is incapable of self
support, because mentally or physi-
eally defective"
Agree to Differential.
The committee has agreed by a
very close vote to a differential of
3-per cent against unearned incomes
and has sent back to the treasury
the latter's draft for this purpose for
redrafting with the probability it may
be dropped, on reconsideration. If
the differential stays in the bill the
present 5 per cent normal tax on in
comes under $4,000 annually might
be made 6 per cent on unearned in
comes and 4 per cent on earned in
comes and the normal tax of 10 per
cent on incomes from $4,000 upward
might be made 13 per cent on un-
earned and 9 per cent, or the present
III per cent, on unearned incomes, a
committee member explained today.
Chairman Kitchin tonight explained
that the committee had referred its
decision iS favor Of an excess profits
tax of 90 to 90 per cent after $1,000
exemption and per cent reduction to
the treasury for its approval. He
said the committee also had commu- I
nicated to the treasury its action in
dividing business into three classes for
pre-war earnings deduction.
The committee has adopted pro-
vision that in no event will the ex-
cess profits tax of corporations hav-
ing less than $4,000 capitalization ex-
ceed 40 per cent of its net income. |
An effort will be made next week to |