New-York tribune., 1918-08-08
80 Per Cent Flat
War Profits Tax
Urged by McAdoo
Will Reach Real Prohteers,
He Tells Chairman
kitchin
House Works on Bill
Interest Rate on Next Liberty
Loan To Be All Per Cent,
Secretary Announces

CHICAGO, Aug. 7.-William c. Nc
Adoo, Secretary of the Treasury. to-
night declared himself unreservedlv in
favor Of fat war profits tax of 80 per
cent.
The adoption of an 80 per cent war
profits tax should render unnecessa
and believe undesirable, any increase
IN the existing excess profits tax rate"
he declared.
Speaking of the next Liberty Loan
earlier in the day he said:
The rate Of interest will be Az per
cent. 1t would be ridiculous to raise
this interest. 1t would mean that the
American people were trying to lift
themselves up by their boot straps
We must have a stabilized interest
system in the loan, so that business
Will not feel it necessary TO raise the
interest in its transactions up and
down the line"
In presentink his views on tax meas
ures now before Congress, Secretary
McAdoo addressed the following tele-
gram to Claude kitchin, chairman Of
the Ways and Means Committee of the
House Of Representatives
Protests Against Delay
Roper has advised me of his talk
with you Wednesday last. greatly
appreciate assurance you gave him of
your desire to meet as far as possible
the views of the Treasury. should
be very sorry to have progress on the
revenue bill delayed for conference con-
corning war profits tax, as under
stand you suggest. This is matte =
which has engaged my earnest thought,
and IN order that you may know my
views without delay, | take the liberty
OF graphing TO confirm and reindors e
the programme outlined in my letter TO
you of June 5, and to express the con-
Ylction that that programme is sound
and reasonable. earnestly hope that
1t may commend itself to you and the
committee. | regard the war profits
tax as an intedral and indispensable
part of that programme.
AS result of the further con-
sideration of the subject which has
been given since / wrote you l am con-
trmed in my opinion that a fiat war
profits tax of 80 per cent should be
imposed. Of course, ample safeguards
should be provided against hardships
in extraordinary cases in the applica-
tion Of such a rate.
The adoption Of an so per cent war
profits tax should render unnecessary
and believe undesirable, any increase
in the existing excess profits tax rate.
~ 10 4iy SNlOi4S CONNICl4Oli Ludl the ldX-
alton OF genuine war profits will reach
real war protiteering and that it is at
the same time thoroughly justiiable
measure upon economic grounds as
we'll as a certain and indispensable pro-
ducer of large part Of the required
revenue.
Patriots VIII Be Satisfied
THE patriotic producers of America
should be content if one-hfth of their
war profits are secured to them, espe-
cially when we reflect that the men who
are fivhting and dying in France to
save the liberties of those who stay at
home and to make it possible for them
to continue in business are limited by
act of Congress to 1896 per year for
their services and haae to give their
blood in the bargain.
Should we be more partial and ten
der to those who are protected in safety
at home than we are to those who make
the supreme sacrifices for us on the
field of battle?
II sincerely trust also that amend
ments which experience has shown to
be desirable, if not essential, to the
provisions affecting the rmination
of excess profits taxes may be adopted