The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-09
CARS AND TOBACCO
MAY GET LIGHTER
RATE OF TAXATION
House Committee Levies
On Autos According
to Their Power.
RAISE MILLIONS
Excess War Profits to Be
ackled Next-Opin-
ions Are Much
Divided.
RAISE MILLIONS

Washington. Aug. Slower taxes
on automobiles and tobacco were
agreed upon by the ways ana means
committee today. The committee re-
scinded the action of few days ago.
liking the automobile tax on the ba-
sis OF the original retail selling price.
and decided To rate the tax accord
ing 10 the horse power of the cars.
The tobacco tax, which in some in
stances was trebled, will now be ex-
sctly double what IL is in the pres
ent law.
The new automobile tax will raise
$50. geo. 600 instead CT the 500 600. =
600 which ii was estimated would be
produced by the other form of tax.
The new tobacco taxes. il Is believed
will produce more money than those
prevfcu1ly agreed upon because they
Will not result in such a large reduc-
ton in the consumption.
The automobile taxes agreed upon
today will be as follows:
On cars OF twenty-three horse
power or less. $40. twenty-four to
thirty horse power, $50; thirty-one to
forty horsepower. $40, forty horse
power and over. $50.
The tax is 10 be paid by the user or
owner OF the car,
Chairman kitchin in a. statement
replying TO the telegram of Secretary
McAdoc, demanding war profits tax
and opposing an increase in the ex :
cese profits tax, said that a majority
of the committee favors the first part
of Secretary McAdoo's request. but
Will insist upon raising the tax on
excess profits. Mfr. kitehtn said:
with the exception of his insist
ence upon letting the excess profits
rates stand rs they are. agree with
Secretary McAdoo and think the COM
nstttee does. In fact, the comn1ittee
| at least ten days before Mr.. McAdoo's
! telegram had or motion or Mr. Girls p
/ tentatively agreed 10 have a war tax
as an alternative and allow the treas
! ury to collect the tax which would be
higher. / didn't give this to the press
at the time because Wa had been try
ing TO work out some inequalities
that existed, have no doubt that
Secretary McAdoo and the committee
will be able TO work out some equit-
able way OF adjusting these matters SO
that all corporations would get the
same treatment,
II don't believe Secretary MeAdoo
ds fully advised In regard to certain
lines OF business which would escape
the tax If we put In tho same excess
rates as in the present law. We hope
10 be able to convince him that the
rates should be raised, majority OF
the committee is convinced that, with
the so per cent. war profits tax. the
existing excess profits rates would b
too low"
Mr.. Kitchin said he expected TO con-
fer with Secretary McAdoo or have
him appear before the committee as
soon as he returns TO Washington. In
the meantime the final settlement OF
the excess profits schedule is held in
allegiance.
new tax agreed upon by the com
6nittee today Is a levy of 10 per cent,
on the amount paid as rental OF
leased wires and talking circuits. The
tax will apply to wires leased to
brokers' houses and TO rewspa pers. A
tax of three per cent on freight orig
mating in foreign country and
shipped into the United States also is
new.
Tax on oil in pipe lines was raised
to 6r per cent. Companies using
their own pipes to transport their own
oil exclusively are yet to be con
sidered.
The committee decided to make no
change in the rates on insurance In
the existing law, except that on group
insurance, limited to twenty-five EN-
pioyes. the rate will be cents for