The Birmingham age-herald., 1918-08-31
Consideration of Worlds Greatest Tax Measure Ex-
 pected to Begin Thursday
WILL EFFECT EVERY
 PERSON IN COUNTRY
Treasury Experts Estimate That Bill as Finally Agreed Upon Will Pro- duce Annual Revenue of Between
 $S,100,O ,O00, 900 and $S, 200, 900, ,00O

Washington, August 30.-Completing it's task of framing the sS,0oo, ,000,0O0 war reve- nue bill, the House ways and means committee today agreed to report the measure to the House Monday. It carries greatly increased income rates of taxes, beginning with a normal tax of per the exemption limits.
 To reach war profits, flat war profits tax of 80 per cent is levied, with an alternative plan of excess profits taxes ranging from s to 70 per cent The max mum surtax on incomes is raised to 65 per cent, and the. normal tax on all in comes over 5000 is made F 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 with in week or 10 days.
 Treasury experts have estimated, Chair man Kitchin stated, that the bill as finally agreed upon will produce an an- nual revenue of between s. ,000, 900 and sS, ,200, ,0o0, 900, thus making the measure by far the greatest revenue producing pro posal which Congress has ever been called upon to enact
 M'ADOO APPROVES
 The bill in it's final form, Chairman Ixitchin said. is in the main satisfac- tory both to the treasury department and to the ways and means committee. Secretary McAdop, he said had approved all Of the schedules with the exception rof the rate on excess profits, and the Is per cent normal income tax on cor- pora tions with the abatement of per cent for distribution of profits.
 It does not impose consumption taxes or liquor tariff, as it was understood that neither would be resorted to unless all other means of raising the $S000, ,00o, 600 should fail.
 Every person and every business con- cern in the United States and every American portion of income of foreign corporations operating in the United States is reached by the provisions of the bil'
 Rates of existing tax laws in the main are doubled. A distinctly war profits tax as ali alternative to the excess profits tax, embodied in the present law, is levied The war profits tax is flat 80 per cent of the net income above a specified exemption of 5000 and deduc- ton of 10 per cent of invested capital added or withdrawn since the close of the pre-war period. The war pronts tax is not to reduce 35 per cent in the case of corporations. the invested capital of which, for the taxable year, is not over s25,O00 and 10 per cent maximum for con- cerns of $50.O00 invested capital. in order to protect small business.
 The war profits or excess profits are to be applied alternativey. according to which will produce the most revenue. The excess profits tax is 35 per cent of the net income up to 15 per cent on in vested capital, 50 per cent for between 15 and 90 per cent on capital and 70 per cent for net incomes exceeding 20 per cent on such capital
 FIRST LUXURY TAX
 For the first time q luxury excise tax, ranging from 10 per cent on straight lux uries to 20 per cent on amounts paid for a variety of articles in excess of specified prices is levied.
 All income statutes. including norm;,l tax of IF per cent, and surtaxes running up to 65 per cent are coditied. Under the present income tax law individuals and partnerships pay super-taxes on their total annual profits up to the present top rates of 50 per cent. Corporations only
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