The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-07-09
May Be as High as 10 Per
Cent, with 5 Per Cent on
A SeTni-Luxuries
IMMENSE AMOUNT
FROM WAR PROFITS
Committee Agreed That It Will Be
Necessary to Make Large Levy on
Automobiles, Probably Through a
Federal License.

WASHINGTON, July Elm lieu of a
cessities- sugar, tea, and coffee-the ways
and means committee Of the house of rep-
resentatives has tentatively decided to
write into the $4,000, 100000 revenue bill
luxury tax. In making this decision the |
committee has adopted the plan in sue
cessful operation in France. In effect the !
tax establishes long list of luxuries, such
as perfumes, scented soaps, toilet waters,
imported mineral waters jewelry, musical
instruments, etc A second list, composed
of semi-luxuries, is based on the selling
price, and will include many articles of
| wear by men and women.
In France, paiamas, lingerie, outer
shirts, hosiery, neckties, in fact, clothing
of every description, come under a semi
| luxury classification, and are not subject
to such high rate of taxation as luxuries.
| Under the French system there is a tax
/ of about 10 per cent on pajamas selling
| for over 81 The man who wears silk
stockings pays tax for the privilege. Silk
underwear and lingerie Of fine texture
| also come in for tax levy, while persons
satisfied with cheaper articles need not
| contribute
| Indications are that the luxury tax will
be as high as 10 per cent, while the tax
on the secondary list win be about 5. but
the committee has not decided what arti-
cles shall be elassed as Injuries. One mem
Der of the committee said that would be
a hard schedule to work out.
j The committee has about decided as to
the lines on which the bill shall be framed,
and probably it would be able TO complete
the bill within two weeks if the secretary
of the treasury were able to furnish the
:. exact returns on excess profit and income
taxes. Until these are available the com
mittee cannot proceed to frame the meas
: ure. Chairman Kitchen said it was nee
essary to get accurate information so the
committee could estimate Just how much
could be raised from these sources with
) out injuring industry.
III 1t is estimated that about IS per cent
: of the amount to be raised by the new law
/ will come from war profits and incomes
5 if the returns justify such course. 1t il
believed by some members that on ac
0 count of price-fxing the returns from
! manufacturers have not been SO great il
: the last year as has been generally sup
: posed. If this idea should prove to b.
d correct the committee may be forced t
n devise means of raising revenue not nov
t under consideration
The committee hopes to obtain abou
Z S5,000,000000 from war profits and a
IS least a billion from incomes As far a
e can be learned, the war profits tax rat
S viii be as high as 20 per cent on profit
Is above those of the three-year pre-wa
Is period 1t will be necessary in order I
IL reach all the taxahles to retain the prir
e clple of an excess profits tax based 0
n capitalization, as many concerns ha
a. greater profits before the war than sine,
" and if the British war profit tax systei
s were imposed, these organizations woul
&c escape war taxation altogether.
he Tho committee has about agreed tha
y it will be necessary to raise a larg
O. amount from users of automobiles, an
about the only way these can be reache
III is through a federal license tax based o
ct horse power.
IS While there has been a great deman
ut from Republican members of the commi
u tee for lowering the exemptions of 81 OF
or and $1,000 respectively, on the incom
fy of single and married persons, it is II,
Oh probable that the exemptions will
ed changed. One thing determined by IL
II committee is that the occupational ia
of 8 per cent on incomes over $4,000 sha
be abolished This is generally acceptt
as an inequality. In it's place the commi
- tee will devise new schemes of collectir
- taxes on incomes. The earnings incon
viii have lower rate than the incon
derived from investments and rent
ed Indications are that the normal tax {
earned incomes will be s per cent, viii