The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1918-08-31
GREATEST TAX
BILL IN WORLD
IS COMPLETED
Measure Will Bring So, 2O0,-
100000 Into US. Treasury
To be Reported Monday.

WASHINGTON. D. c., Aug. 31.-In
a conference which Chairman Kitchin
and other members of the house ways
and means committee had with Secre-
tary McAdoo Friday practical agree
ment was reached on vital sections of
the revenue bill. The measure, the
largest tax bill In history Of any ma
ton, now has been finished except for
final reading and textual corrections.
1t was estimated originally that of
the $24,O00,0 100000 necessary for the
war expenditures in the next fiscal
year one-third. or So, 900, 900, 900. should
be raised by a tax bill, doubling. in
some instances tropling, the rates in
the present revenue bill.
1t was estimated Friday by Repre-
sentative Kitchin that the bill, if en-
acted into law, would bring into the
treasury more than $8,200.000, 900,
chiefly from taxes upon those who
have made money from the war and
without imposing consumption taxes
on breakfast table necessities. ..
The bill, as it will be reported to
the house either Monday or Tuesday.
does not have the entire approval of
Secretary McAdoa He is opposed to
the war profit section containing the
alternative excess profit tax beginning
with tax of 35 per cent and running
as high as 70 per cent.
The New Rates.
AS agreed to by the committee yes
terday, the war profits section, esti-
mated to raise 00,00O,O00, imposes
an 80 per cent war profit tax and pro-
NyiH Po OLE
tax. There is an exemption Of $4,000
plus 8 per cent of the invested capital,
after which these rates are levied:
On income exceeding the exemp
tons and not exceeding Is per cent of
invested capital, tax Of IS per cent:
in income exceeding Is percent and
not exceeding 20 per cent of invested
capital, a tax of 80 per cent.
On income exceeding 20 per cent
Of invested capital, tax of 70 per
cent.
Secretary McAdoo recommended the
80 per cent war tax and an alternative
tax, the same as the present excess
profit tax, with rates from 20 to 60 per
cent.
After determining that the Difficult
ties of administration void be very
abandon the plan for placing greater
normal tax on unearned than earned
incomes.
He insisted originally that the tax
on unearned incomes should be Is per
cent and on earned incomes IS per
cent. In the conference today he
agreed that the normal tax on all in
comes should be II per cent.
This mnapa fbof fboro will ho .
per cent normal tax on all incomes
over $4,000 and the tax on incomes
below that amount will be down to
the exemption figure of per cent
The present normal tax is per cent
The exemption in the bill is the same
as in the present law, $1,000 for single
and $4,000 for married persons
Autoists to Pay $4,000, 900.
Virtually all the taxes in the present
revenue laws are doubled, and in some
instances they are tripled. There are
no new taxes except luxury tax pat
termed after the English and French
system and tax on the users of au-
to mobiles. This tax, which is In the
form of a federal license, based on
horse power, it is estimated will raise
$70,000,000. The automobile tax ranges
as follows:
Motorcycles, S.; automobiles or cleo
tries Of 20 horse power or less, $40;
more than 90 horse power and not
more than 80 horse power. $40; more
than 80 horse power and not more
than 40 horse power, $50; more than
40 horse power $50
The tax on all travel tickets, rail-
road or boat, is increased to per cent
and there is an extra tax Of per cent
on Pullman tickets.
There is tax of 5 cents on tele-
phone charges between IA and so cents
and the tax is 10 cents between so
cents and a dollar