Arizona republican., 1918-08-17
TREASURY WAR
 PROFITS PLAN
 WAS ADOPT
Ways and Means Committee
 Also Agreed to Three Classifications of Business For Deduction Purposes
rRepubIican A. p. Leased Wire]

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 WASHINGTON. Aug. 16.-An eight per cent exemption. in addition to a specific s3,000 exemption on the excess profits of corporations, with tax or 40 per cent, on all excess proflts be- tween per cent and 20 per cent and a tax of 50 per cent on all excess prof it's exceeding 20 per cent, was agreed upon today by the house ways and means committee.
 The committee, in writing this schedule, into the eight billion dollar revenue bill, also adopted the treas ury's alternative plan for flat so per cent tax on war profits. The commit tee agreed to three classifications of business for purposes of deduction from the war profit.
 Deduction For Pre-War Earnings
 The deduction for pre-war earnings is Financial and transportation cor porations. eight per cent; manufactur- i ing, farming and general business. 10 per cent. and mining and kindred i hazardous businesses. F per cent. Ninety per cent of business corpora tions, it is estimated, will be affected | by the war profits tax and the re- mainder by the excess profits tax. | Estimates show excess and war profits taxes will yield a total of s. | of the bill much nearer the ss00e,o00, i 900 goal.
 Chairman Kitchin of the committee, said today that the treasury expected to submit tomorrow some further sug- gestions regarding the income tax. He i said unless there is something to change the situation the normal in come tax rate will begin with five per cent on the first 5000 and ten per cent on all incomes between s4,6o0 and 5000, the surtax beginning at 5000.
 Outlines Surtax Schedule
 The surtaX schedule Chairman Kitchin said, probably would stand as agreed to with the following percent ages:
 Five thousand dollars to s7,5e0. three per cent; s7,5o0 to s10,o0o, six per cent: s1o,000 to s15.ooo. 10 per cent: s15.000 to s2o.0oo, 15 per cent; s20,oee } to s30,000. 20 per cent: s30,000 to $40 900, 25 per cent; s40,000 to $50,000. 30 l per cent; s5o,0Oo to s6O,oo0, 40 per cent; s60. GOO to s70000 A per cent; s76 900 to sS0,o00. 47 per cent; ss0.o0o to sao, 1 0o0 4s per cent; s90,000 to s1o0,ooe, 4s
 per cent; slOo,o0O to s2oo.oOo. 50 per cent; s20o GOO to $500. 900. B per cent; { sSoo,o00 to s5oo.oo0. SO per cent; s5o0,- o00 to s1.0oo. 900. 65 per cent, and S1,-
 
 All incomes over 5000. 900 would pay surtax of 75 per cent which add : ed to the normal tax, would make such : incomes taxable to the extent of S5 per cent
 . Chairman Makes Statement
 Chairman Kitchin made this state y ment tonight:
 l We changed the plan for payment t of the taxes by installments, at the S suggestion and request of the treasury
 department so that one-third will be due when the tax payer makes his re- . turns, another third within two
 months thereafter and the remaining third two months later. The commit h tee decided against a rebate for each
 payment of taxes.
 Q The committee appropriated the hS25,o00,000 requested for the adminis-
 traitor of the revenue laws by com
 missioner Roper and authorized two
 additional deputy commissioners of in-
 ternal revenue.
 To Make DifferentiaI
 Tt was decided to make a differen- tlal of three per cent in favor of earned III incomes as against unearned. The tax II would be ten per cent normal on
 earned incomes and -13 per cent on un-
 earned incomes. Unearned incomes
 means that part of the net income de-
 rived from dividend on preferred stock
 from interest. rentals, royalties and : annuites"
 d MT. kitchin indicated that he did Q not expect the committee to resort tc : the tariff to raise the total sS,OOO, 900, -, 0O0
 l. The committee agreed to a proposal f that the name of every person making il returns under the income tax law be ,l posted in county court houses in order ts that the public may know who have - not made returns. The amounts vii l. not be posted. The proposal of Rep = resentative Treadway of Massachu-
 setts, to put tax on billboards Wa. :, rejected.