Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-07-29
CONGRESS FIGURES
OUT LUXURY TAXES
Ways and Means Committee Be-
gins To-Day on Most
Difficult Task.
TO RAISE s1,5O0,oOO,O 900
List Submitted by Treasury De-
Partment to Be Gone
Over Thoroughly.
TO RAISE s1,5oo,ooo,oo0

"ASHiNGTON, July 2S.-Having dis
posed OF the income tax and the tax
on excess profits. the Ways and Means
committee tomorrow will turn its at
,cntion 10 the problem of what luxurics
snail be taxed and how much articles
under this classification shall be called
upon to contribute To the nations reve-
nues.
The committee has made such satis-
factory progress IN agreeing upon the
essential features of the new IS 900. :
100000 bill that Chairman Kitchin is
hopeful the measure will be ready to
report TO the House when its sessions
are resumed August 10. The vote on
the bill. however. may not come until
September. as the agreement under
which the recess was taken stipulated
that the watcr-power bill should have
the right of way and be disposed of
before the revenue bill is taken up.
The tax rates already agreed TO by
the committee are as follows:
j. Individual income tax, normal
rate fixed a, 10 per cent but the scale
OF supert:xeS no; yet worked out
?. Corporation income tax rate fixed
at is per cent on the net income with
Hroviso that income divided among
shareholders shall be taxed only I2 per
cent
3. Inheritance taxes raised so per
cent.
:. Excess profits tax fixed at 80 per
cent Of the net income. less exemp-
tions up 10 10 per cent, so per cent
on the income between 10 and 25 per
cent. and so per cent on the income
over % per cent. The rates provide
a fiat exemption of $1,000 and 10 per
cent.
The estimated yield from these
sources totals si,34o.0oO.Oo0, leaving
practically s3.500,O00 900 to be raised
by other taxes.
JEWELRY AND ADMISSIONS
SUBJECTED TO TAXATION
The Treasury Department has esti-
mated that the taxes on liquors. tobac-
%. jeweiry. adm issions, club member
ships and items Of that sort will pro-
duce about sol3 100000 for the current
fiscal year. II these taxes should be
arbitrarily doubled. as suggested by
some nlernbe of the committee. the
Yield would be sl,s26 900, 600, provided
the productions should be ;ne same dur
ing the coming year Allowing for a
slight depreciation, the committee feels
safe in counting upon at least $780,
100000 from these sources, of which
$1,000 100000 is expected to be derived
from taxes on liquors Of all kinds
The result cf all these calculations
is that the committee feels it will be
absolutely nect ssary 10 take up some
OF the articles on the luxury list" sub
mitted by the Treasury department in
order to find revenue to make UP the
desired total No member of the COM
taxes that would result in undue hard
ship to business or 10 the customary
cnjoymeuts of the people. At the same
time, the opinion prevails among the
members that some of the selections
made by the Treasury officials have
some merit and undoubtedly should be
taxed.
Treasury officials have notified the
committee that fully $4,000 00j. 600 could
be raised if tho recommendations in
the matter OF luXuries should be carried
out There is very slight possibility
that even one half of the articles on
the Treasury's list will be subjected to
taxes Hence the committee is not
counting upon raising more than ST.
oo0.00o,000 from this source
Members of the committee admit that
the determination of the luxury ques-
tion is one OF the hardest with which
it has had TO deal. and considera le
time Will be given to il before any Of
the taxes are finally agreed upon