The Sentinel=record., 1918-09-03

tubes, $1 ,500, 900.
 Special taxes-Capital stock $70.-l 100000; brokers, $l,700,000: theatres, $2,l30,000; mail order sales $5,000000. bowling alleys, billiard and pool ta bles $2,200,000, shooting galleries $400-l GOO; riding academies $50, ,000; bus.- ness licenses $10,000,000; manufactur- CTS of tobacco $69,000; manufacturers of cigars $S50,000. manufacturers oil cigarettes $240,00O; use of automobiles and motorcycles $72,920,000
 The report which will be made pub lie tomorrow by Chairman kitchin, explained the provisions of the bill i'm detail. It said the committee determ lned what proportion Of the cost of the war this year should be financed by taxation, and by bonds, not from previous experience as there was no analogy or history, but upon thorough consideration of the effect on the mo- rale of the people upon price imitation, upon production and upon relatlve ability of the people to pay taxes now and after the war.
 The committee explained that 1t had decided upon the raising of $8,000, ,0O0,- 900 by taxation because it had accept- ed as sound fiscal policy the recom- mendation of Secretary McAdoo that one third of the governments esti- mated expenditures of $24,000, ,0O0 900 this year be obtained from this source and the remaining two thirds by bonds The report said that the bill levied on all citizens or residents of the United States normal tax of 12 per cent on the amount of income in ex- cess Of exemptions except that on the first S4,000 of the taxable amount the rate shall be six per cent The meas ure also increases the sur taxes all ! along the line.
 While under existing law only | plaintiffs of lawful age have to make
 returns, the new bill requires per- sons under the lawful age and hay
 ing net income for the taxable year of Sl,000 or over, if single, or if mar
 ried, and not living with husband or Wife. and all married persons living with husband or wife, having a net income of 5000 or over to make re- turns.
 f The Dill levies corporation tax of IS percent of the amount of net income in excess of the credits al lowed, but provides that the rate shall be 12 percent upon such of this
 
 dends paid during the taxable year plus the amount paid during the tax able year out of the earnings or prof it's in discharge of bonds and other interest bearing obligations outstand- ing prior to the beginning of that year.
 This provision was under fire in the committee today but without change Under fl a corporation having Sl00.- 900 net income in excess of it's cred its, which pays out during the year $50,000 in dividends and discharges Sl0,000 worth of bonds, would then be taxed F percent on $6c,000 and IS percent on $40,000.
 Tine bili makes no change in the corporations exempt from income tax.
 Partnerships are not liable to in- come tax, but each partner will pay his income tax upon his share of the partnership profits whether distribut- cd or not.
 The bill applies the war and excess profits taxes to corporations only
 Provision is made to protect car porations whose invested capital IS less than s50,00O, and those corpora tions in which invested capital is net material producing factor.
 Increases also were made in the estate tax which range from three percent to forty percent.
 The transportation and insurance taxes already made public, including new tax of 10 percent upon the amount paid to any telegraph or tel ephone company for any special leas ed wire or talking circuit but does not apply to collection and dissemi- A'"eAbAA VI uEHo luTOuSn IuG DQDlic press or in the conduct by common carrier or telephone or telegraph company of it's business as such There is no reference to the i'm minence of prohibition legislation in what the report said, about the bev- craze tax
 The tobacco rates already made public, the report said, are fixed at approximately the highest revenue producing rates that can safely be levied, without greatly reduced con- suntption of tobacco and consequent reduction in revenue.
 So far as practicable the committee has placed the excise taxes upon the manufacturer, producer. or importer. In the second group of articles re- | garded as a luxury. when sold over fixed price, the committee believed that these taxes should be paid by i the consumer and collected by the re-
 taller and by him returned to the