Highland recorder. (Monterey, Highland County, Va.) 1877-1972, 1918-09-06
IIIEEIH REVENUE -, -
! ! BILL COMPLETED
The WAR Measure Will Affect
Everybody.
CARLY PASSAGE EXPECTED
Alternative Plan Arranged To Reach
Exccszt Mar Profits-Ratc5 OF
Existing Law Practically
Doubled.

WASHINGTON. - Completing its task
Of framing the SS,000,O00,000 War Rev
enue bill, the House Ways and Means
Committee reported the measure TO
the House. 1t carries greatly increased
income taxes, beginning with normal
tax OF s per cent on all below $4,000
a year and above the exemption limits.
To reach war profits fiat war prof.
IT'S tax of 80 per cent. is levied with
an alternative plan of excess profits
taxes ranging from S5 to 70 per cent
The maximum surtax on income IS
raised to SIS per cent. and the nOrma!
tax on all incomes more than $4,000
is made II per cent.
The bill, which will affect either di
rectly or indirectly every person and
business concern in the United States,
probably will be taken up in the House
for consideration next Thursday, with
prospects that it can be disposed of
within a week or 10 days.
Treasury experts have estimated,
Chairman Kitchin stated, that the Dill
as finally agreed upon will produce
an annual revenue Of between $8,lO0,'
100000 and 200,000,000, thus making
the measure by far the greatest rev
cnue producing proposal which Cen
gress has ever been called upon to
enact.
The bill in It's final form, Chairman
Kitchin said, Is in the main satlssac'
tory beth to the Treasury Department
and to the Ways and Means Commit'
tee. Secretary McAdoo, he said, had
approved all Of the schedules with the
exception CT the rate on excess profits
and the 18 per cent. normal income
tax on corporations, with the abate'
Inent Of s per cent. fer distribution OF
profits.
The outstanding features Of the com.
pleted bill are:
It does not impose consumption taxes
or a higher tariff, as it was under
stood that neither would be resortcd
to unless all other means Of raising
the $4,000, 100000 should fail.
Every person and every business con
Germ in the United States and every
American portion Of income of foreign
corporations operating in the United
States Is reached by the provisions {.
the bill.
Rates Of existing tax laws in the
main are doubled. A distinctly wal
profits tax as an alternative to the
excess profits tax embodied in the pres
ent law is levied. The war profits tag
is fiat so per cent. Of the net income
above specific exemption OF $1,000
and deduction Of 10 per cent. Of i'll
vested capital added CT withdrawn since
the close of the pre-war period. The
war profits tax Is not to exceed 80
per cent. In the case Of corporations
invested capital of which for the tax
able year is not over $25,CG0 and 20
per cent. maximum for concerns Of $50,
coo invested capital, In order to pro
tect small business. The war profits
Or excess profits are TO be applied altaT
natively, according to which will pro
duce the most revenue. The excess
profits tax is 35 per cent. of the net
income up to IS per cent. on invested
capital, 80 per cent for between IS and
90 per cent on capital and 70 per cent
for net income exceeding 20 per cent
On such capital.
For the first time luxury excise ta8
ranging from 10 per cent. on straight
luxuries to 90 per cont. on amounts
paid for a variety CT articles In excess
of specified prices is levied.
All income statutes, including a nor
nal tax of 12 per cent. and surtaEes
running up to 65 per cent. are codi
fed.
The bill retains the present income
provisions as for payment OF the taS
at the source, eXemnts the frst $f,GCC
CT annual net income of single persons
or married persons not living with
their husband or wife and the first
$4,000 of the annual income Ct married
persons and embodies most OF the pro
visions of the present Income Tax law