The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-08-30
REVENUE BILL
IS DUE NEXT WEEK
Differences Between Com
mittee and Secretary
Delay It's Report
INCOME TAXES A
SOURCE OF DISPUTE
Defect Discovered in Exemption Plan
McAdoo Denies That He Has Urged
Taxation of Liberty Bonds-Cornmit-
tee Had Favored This Proposition.

WASHINGTON, Aug. 3o.-Indica.
lions now are that the $S,000,000 900
revenue bill will not be reported to.
the house until Monday next. This is
contrary to the expectation of the WAYS
and means committee which had hoped
TO have the bill ready today or tomor-
row, but Claude Kitchin, chairman of
the committee, says that it has been i'm
possible to finish the work by the time
expected.
The committee-is still struggling with
the controversysover graduated income
surtaxes. The original position of the
committee was strongly disposed to-
ward the taxation of Liberty bonds and
the bonds of state, municipalities and
local civil corporations. Secretary Me-
Adoo, who urged that such a course
would hamper the sale of Liberty bonds
and draw upon the government the
charge of deliberately getting behind
gross violation of the constitution as
war necessity. He advanced the plan
to establish in the revenue bill dis.
tinet and unmisfakable exemption of
| all government securities and also Sc
eurlties of state, cities, and other civil
| divisions throughout the country.
| To provide against the loss of revenue
| involved IN such an exemption, Mr.. Me
Adoo asked that income from exempt
/ securities be taken account of only for
he computing of income surtaxes and
for the placing of the tax payer in the
| proper classification, or bracket, where
he would stand if his income consisted
entirely Of returns from taxable securi.
| ties.
| The committee has received deluee
of protests from every part of the coun.
try against the proposition 20 tax ex.
empted bonds, and, growing out of re
ports that have gone out in regard IL
i Secretary McAdoo s recommendations
evidently many think he wants Liberty
| bonds taxed The committee has alsc
had many kilograms and letters from
security holders in various parts of thu
country to the effect that they under
stand that the secretary wants all Lib
4 erty bonds hereafter issued 10 be FIRE,
/ from all taxes. To meet this charg,
Secretary MeAdoo has issued the fol
| lowing denial:
/ Newspaper reports that I have
urged that the Liberty bonds hereafte
! issued be free from all taxation ar,
| erroneous.
/ Secretary McAdoo made himself quit,
clear in his hearing before the wavi
and means committee on the who'll
matter of taxation of incomes. H,
called attention to the contention from
| the treasury department. that the pres
ent practice Of placing the taxpayer I
deduction of non-taxable income all il
one bracket of classification, was wron,
and that non taxable income should b.
distributed over all the brackets. b,
following this plan the taxpayer would
be required TO state in his returns hi,
income of every description, whether
/ exempt or otherwise, and his tax woulC
be computed on the basis that all of il
was taxable in the various brackets an6
then from this computed fax Their,
| would be deducted whatever credit
should be allowed for the part OF hi,
Iincome which was plainly exempt a,
government, state or municipal bonds