Evening journal., 1918-08-14
WAR REVENUE BILL
IS ALMOST READY
McAdoo VIII Contest With
Committee Over Excess
Profits Scale
$40 TAX ON THE
PROFESSIONAL MAN

WASHINGTON. Aug. i4.-The Way
and Means Committee has almost com
pleted the new revenue bill. II th'
committee can straignten out its differ
ences Of opinion with the Treasury De
partment over the proper scale Of ex
cess profits to be finally adopted, th'
measure Will be introduced when The
House meets next Monday. This as.
surance came from memebrs OF the
committee yesterday.
Secretary McAdoo went before the
committee today to fight out the diff
ferences Of opinion which have arisen
The committee has tentatively adop-
ted the report Of the subcommittee or
the vocational tax and incorporated
in the bill tax OF $40 on professional
men and propretors Of any retail busi-
ness concern doing an annual business
OF at least $1,000. The proposed tax on
wholesalers doing a business Of $780,
900 or more was adopted also and the
license tax for that class Of business
men was fixed at S25
The 10 per cent tax on leased wires
and talking circuits was reviewed by
the committee, and newspapers and
periodicals were exempted from its
operation. Otherwise the tax was un-
changed.
At the instance Of one member, the
committee voted 20 impose a 10 per
cent. tax on the retail sale Of platinum
iewelry in addition 10 the 10 per cent
tax on jewelry manufacture. This tax
will be paid by the purchaser, and in
order that close track may be kept OF
all the platinum in the country, Jew
elers selling any article containing
platinum must ascertain and forward
TO the Bureau Of Internal Revenue the
name and address O. every person max
ing a purchase Of platinum iewelry.
In the estates tax it is proposed that
these rates be written into the new
law:
On portions OF estates between one
and two millions. 20 per cent. instead
of IS per cent.
Between two and three millions, 25
per cent. instead Of q per cent.
Between three and four millions, 30
per cent. instead Of "a per cent.
Between four and five millions, 35 per
cent. instead Of 27 per cent.
Between five and eight millions, 40
per cent. instead Of 30 per cent.
Between eight and ten millions, as
per cent. instead Of 35 per cent.
Exceeding ten millions, 80 per cent.
instead Of 40 per cent.
The suggested changes in the income
supertax rates are as follows, In four
of the higher brackets:
On portions Of incomes between $780,
600 and 100000, 50 per cent
Between $4,000 and si,OOOO00, &c per
cent.
Between 100000 and sS.OOo,OOO IS
per cent.
Exceeding s5,OOOOOO. 81 per cent.
1t IS regarded as improbable that
this Increase In the rates already ten
fatively agreed upon Will be acceptable
10 the committee. 10 is the sugges-
ton Of only one man, and has elected
no great enthusiasm among the MEM
bers.
The normal tax on individual in
comes win be 10 per cent Of the
amount of incomes above the exemp-
tions Of $1,000 for married men and
heads of families and $1,000 for others.
In addition, as under existing law.
$500 for each dependent child under iS
years Of age. However, the posses !
sors Of small incomes are not going to /
have to pay the entire 30 per cent |
normal tax.
II was learned that the committee
has written into the first draft Of the
bin the provision that on the first
81, 900 Of taxable income the normal tax
shall be only 5 per cent. This will
mean that a married man with two
children and an income OF $500 will
have 20 pay a normal income tax of
s2OO, instead Of sAOO as the bill pro-
Vided under the amendment was
adopted.
The final shape in which the com
mittee has left the income supertaxes,
provided the four suggested changes In
some Of the higher rates are not adopt
ed tomorrow is as follows:
On portions Of incomes between
5000 and $500. 3 per cent.
Between $500 and $4,000. 6 per
cent.
Between $4,000 and $4,000, 10 per
cent.
Between $4,000 and $4,000, As per
cent.
Between $4,000 and $4,000 90 per
cent.
Between $4,000 and $4,000. 25 per
cent.
Between $4,000 and $4,000, 30 per
cent.
Between $4,000 and 10000, 30 per
cent.
Between 100000 and $4,000, as per
cent