Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-08-20
M'ADOO Makes PROTEST
AGAINST TAX COMPROMISE
Expresses Unqualified Disapproval nf
Ways and Means Offer on
Excess Profits.
COMMITTEE is DlsCoNcEkrEp
Secretary May Re Forced to Carry
His Case to Scnate-Insists That
Legitimate Business Would Be I'm.
justly Burdened.

WASHINGTON. August lo.-secre-
tary McAdoo sent n letter to Chairman
hitchin' OF the Ways and Means Com
mittee. to-day expressing his unquali
ned dtsapproval OF the committees,
compromise offer in the matter of the
TAX rates on excess profits. He in
sisted upon the acceptance of his orig
inal proposal that in view OF the adop
tion OF the so per cent tax on war
profits the rate on excess profits should
De allowed to remain as they are I'm
the present law.
Secretary McAdoo also informed Mr..
htchin That the normal income tax
on individual incomes should be ~ pcr
cent instead OF 10, as agreed upon by
the committee, and that on unearned
incomes there should be an added diff
ferenttal of per cent. making the
rate OF such incomes Is per cent.
The sale OF bonds OF the next LIB
erty loan will be promoted. Secretary
McAdoo said in his letter, by putting
the rate on unearned incomes up to
this high figure, for the reason that
persons enjoying large incomes of that
character will find It to their interest
to invest their profits in Liberty bonds
rather than submit to the Is pcr cent
tax.
Secretary McAdoo's letter had a dis
concerting effect upon the committee.
which has been stubborn In its refusal
to accept the Treasury recommends
tions in the matter of the war profits
and excess profits rates. A majority
of the committee. led by Chairman
kitchin, has insisted that the excess
profits rates should be increased in
spite Of Secretary McAdoo's objections
1t was stated to-day that the COM
mittee probably will insist upon max
ing some increase in the rates, and
that Secretary McAdoo will then be
forced to carry his case to the Senate
Finance Committee If he is to win on
the point that legitimate business will
be unjustly burdened by any increase
in the taxes on their profits.
TIC LEVY SMALL TAX on
"RUBBERNECK" WAGONS
The committee decided TO levy a tax
of 10 per cent on all sightseeing. or
"rubberneck." wagons. There is no
estimate of the amount OF revenue the
tax will produce. but it is expected
that the tax will be collected from
the passengers in the form OF an addi-
ton 10 their fare.
The question OF placing IL stamp tax
on all narcotics was discussed at length.
but no decision was reached. In the
matter of the taxes on alcoholic bev-
crages. It was decided to put off a de-
cislon on them until the very last.
the reason being that the prohibition
amendment is still undecided in the
Senate and the committee does not
know whether or not there will be
any beverages to tax.
If the prohibition amendment passes.
the committee probably Will decide
upon consumption taxes on coffee. tea
and cocoa to make up the deficit.
1t was decided to increase the tax
on playing cards from per cent to
per cent. All the other stamp taxes
In the present law were left unchanged.
Figures submitted to the committee
showed that the sales of playing cards
have been dropping off until they arc
not more than so per cent OF what
they were before we got into the war.
As reason for this. il Is explained
that the women's bridge clubs arc no
longer In session; that the women who
had to have now deck tor every
game arc now knitting for the soldiers
or working for the Red Cross. Most
OF the cards now In use arc used by
the soldiers in the camps and abroad
and thoy are glad TO get any old kind
Of cards. whether new or not. so that
tho sales have fallen of TO such an
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