The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-05-26
LUXUR|ES TO PAY TAX
Leaders Have Plan to
Get Most Of Money
Out Of Profits.
KTC[1IN IS BUSY
Collects Figures In An
Effort to Learn How
Least to Disturb Ma
tons Business.

Washington, May 25.--A rev.
enue bill. drastic In It's terms, Will
be drawn at II : session OF con-
| gress.
/ Congressional leaders late to-
day gave up all hope of avoiding
Ii. The insistence of Western
senators that there be tax and
that 1t fall heavily on profiteers
defeated the attempt 10 delay ac-
ton until after the elections.
Senator simmons chairman OF the
/ finance committee. sent President
Wilson 4 letter tonight. He said he
had been unable to reach an agree
ment that bill would be passed in a
special session between November 10
and December 81. next. II was learn
ed that the president had informed
Senator Simmons at last nights White
House conference that If this agree
ment could be reached. the president
would consent to delay.
Majority Leader Kitchin said the
ways and means committee. OF which
he is chairman. viii begin sessions
early next week First will come pub
lie hearings. Secretary of. the Treas
ury McAdoo probably will be the first
witness He is expected to suggest
what taxes can be levied with least
distur bance to the country's war ef-
fectiveness. Next will come private
manufacturers and commercial in
terests who will make their cases for
exemption from the TAX.
1t is known. however, that kitchin
has his own ideas on what the vari-
Gus schedules WITH be. He has been
collecting all winter the financial re-
ports of corporations making great
war profits. Fellow members of the
committee are told kitchin will re-
sist consum ption taxes TO the last.
Luxury taxes OF a new sort are plan
ned
kitchin favors. for instance. dean-
ing sui, of clothes costing $40 as a
necessity. but a suit of clothes cost
ing $40 luxury.
He proposes that 10 per cent tax
he laid on the excess over $40 Fine
. furniture, jewelry. art. musical in
struments, etc, will be under this
class full text Of a similar tax
adopted in Great Britain has been OBJ
tanned by the ways and means com
mittee,
It is probable that the ways and
means committee will adopt the Brit
ish system of so per cent levtes on all
excess profits Senator James Ham
llfon Lewis, Of Illinois. Democratic
/ whip. is committed to a policy of de-
fining fair profit at about per cent
! and Contlscating sums in excess OF
that.
Senator Kenyon. OF Iowa. is pre-
pared TO renew his suggestion that all
persons having incomes over si00-
900 must forfeit such excess to the
government.
While the initiative of killing the
plan for delay rested with Republi-
cans, a fight had been planned against
such q course by three Western Dem
ocratic members of the finance COM
mittee. They were Senator Lewis. OF
Illinois; Nugent, OF Idaho, and Jones.
of New Mexico. Speaking for them.
Senator Lewis said tonight:
III Is agreed there must be a tax
and IL must fall on profits and in
comes OF 1918. The senators wish to
delay the framing of this bill until
after the fall elections. It must be
patent to all such delay would not
delay the tax itself,
Business, therefore. should not
feel that such a course would benefit
It, on the contrary II would be hurt
go through many months in which
they would not know what rate OF tax
alton they would face ultimately.
They would be proceeding blindly.
Il think business is willing to stand
its share of the expenses of the war
and that il Is sensible enough to want
to know what burden it will be called
on to hear"
1t was reported widely at the
Capitol today that one reason why
certain Eastern and Southern senators
wished a short term bill was that they
would he enabled TO threaten to kill
the entire bill If It We're drawn too
drastically. Senator Lewis said the
West ard North favored an immediate
bill. but the South and East desired
delay. Many Southern senators feel
certain that cotton will be assessed
in a special section of the bill.