The sun., 1918-07-13
TAX BILL TRAINERS
HAVE THREE PLANS
How Hard to Hit Wealth Is
Big Question Before I
Committee. y
WORK STARTS MONDAY
Four Weeks Necessary to
Draft Measurc-Publisht
crs Protest.
WORK STARTS MONDAY
Speciai bespatch 10 Tar srN

spccfdf DfsputCh 10 lHE stN
WARRINGTON, July 1.-THE business
OF actually framing the new revenue law
will begin next Monday when the Ways
and Means Committee OF the House
meets in secret session. The committee
ended Its hearings to-day.
The committee expects to take at least
four weeks in drafting the new law IT
is evident there are sharp differences Of
opinion among its members. Some want
to follow the flexible British system.
while others favor retaining the present
normal tax Of 4 per cent. third point
OF divergence concerns the proper taxa
ton of luxuries.
The amount which could be raised by
adopting the British system Is estimated
by Chairman Kitchin at between S3,-
000. 100000 and $4,000. 100000 more
than Is now obtained by the British
Government.
Exemptions TO He Unchanged
1t was made plain to-day that IL Mr..
Kitchin's views prevail there will be an
| increase In the present normal tax, but
II is doubtful IL there will be anYgreat
effort to change the present exemptions
of $4,000 for individual income OF per-
! sons with no. dependents and $4,000 for
those with dependents.
! The second and third points at issue
involve the percentage OF increased
| revenue which should come out Of mis-
| cellaneous taxes. including luxury
| taxes" and the proper taxation of
luxuries to obtain revenue without kill
ing off certain branches Of business al
| together.
! The argument OF those favoring only
! a reasonable tax OH wealth to provide
the additional $4,000. 900, 900 or $4,000
100000 yearly is that present profits
will drop off after the war and the re-
| turns under s'dh taxes will decrease ma
| terially.
| Placing miscellaneous taxes. including
| stamp, retail. Gales. admission, excise
| taxes and the like upon wide variety
of necessities and luxuries they point
| out will maintain the revenue at high
level after the war.
Luxury taxes fall among the miscel-
/, laneous taxes. The suggestions sent
from the Treasury Department have
caused a furore. 1t is known that Mr.
McAdoo never saw the suggestions sent
to the committee, They represent the
views OF experts In the Treasury De-
partment and were sent informally
| 1ney were not 10 DE aCCepleu as TeCOfl'
mendations bye Mr.. McAdoo. II he in
sists on their inclusion it is safe a.
sumption they will godn.
Publishers Make Protest.
The hearing to-day was devoted al
most exclusively to hearing Charlie:
johnson Post. director Of the publishes
advisory board, and Jesse II. Neale o
New York. representing the Associated
Business Papers. Inc. Mr.. Neale con
tended that the trade journals have be
come practically an arm OF the Gov
eminent and declared Germany woul'
like nothing better than to witness thu
weakness of our national morale through
the poisoning or drying UP OF our spring
OF information"
This. he believed. might happen from
the continuance of the present zon
rates. He stated the publishing industr,
is the only one In the country which 1
giving Its product to the Government
without condition.
Mr. Neale said the organization h
represented is willing TO accept a fla
rate of cents a pound, an Increase o
100 per cent. over the former rate. n
was recommended years ago by the com
mission headed by Charles E. Hughes
: Mr.. Hughes holds now the opinions h
expressed then. Mr.. Neale said.
Chairman Kitchin reminded Mr. Neal
that publishers objected to the cen
rate when 1t was recommended by tn
= Hughes commission and declared the
4 favored II now because the zone LAY
| makes the charge higher In the end.