Evening star., 1918-08-16
DELAY Y|NFRAM|NG
EIGHT BILLION BILL
Chairman Kitchin Says Rev.
enue Measure win Not Be
Ready Monday.
STILL is SHORT OF NEEDS

The $4,000, 900 revenue bill WIN not
be ready for the House on Monday,
when It reassembles for buEines& II
probably will not come up for con-
sideration before August "a Chairman
Kitchin is responsible for this pre-
dictfon.
The revenue bill still is from $780,
600, 600 to $1,000. .ooo. 900 short Of the
required $4,000, 100000. A COMMITTEES
has been appointed to consider amend
ments to the tariff law to obtain more
income.
The ways and means COMMITTEES to-
day is giving further consideration 10
the Treasury Departments scheme OF
levying an so per cent war profits tax,
with the present rate under the e1-
cess profits taxes as an alternative.
within the discretion of the commits
sioner of internal revenue to enforce
Mr. McAdoo Urges Expedition
Secretary McAdoo in appearing be-
fore the committee urged that the
bill be expedited so that it might be
enacted into law before the beginning
of the fourth liberty loan campaign
September %.
There were indications. after two
ficials, that the committee will insist
on increases in the lower brackets OF
the present excess profits schedule
and will make little or no increase in
the higher brackets. The present ex-
cess profits schedule is graduated
from 20 to so per cent
DR.. T. S. Adams. chairman OF the
Treasury excess profits tax advisory
board, testifying yesterday before the
committee, indicated that Secretary
No mt a graduated
tax. with the higher rates of so. 50 and
somewhere between so and so per
cent, if the committee will adopt the
Treasury plan for a nat SO per cent
tax on war profits as an alternative,
the Treasury to determine which TO
apply.
Warns Of Taxation Limit.
Warning that IL the government
takes $4,000. 100000 in taxes II is TAX
ing as much "as we can safely take
at this time, and we must take it in
mittee by Assistant Secretary Letting
well of the Treasury, in his previous
! testimony. made public yesterday.
we are approaching the point" he
said, where We are taking all the
taxes that We can safely take. The
people who are making more money
| than before the war can pay those
| taxes and ought to pay. but when we
! we must put in the law something to
deal with exceptional cases. so that
| we may not ruin anybody by arbi-
trary application of a general prin-
ciple. We must take advantage of
England's experience and be prepared
to temper the blow to the corpora
| tion that We are unable to deal with
upon any general rule.
Would Classify Business.
Treasury officials yesterday sub
mitted a plan to divide business into
4 eight classes, on which the Treasury
| will have discretionary powers to fix
| the percentage of deduction for pre-
| war earnings anywhere between s
and II per cent This plan as sub
mitted follows:
TAX computed by the war profits
| method shall be 80 per cent of the
amount of the net income in excess
| of the war profits deduction.
For the purposes of this section
the genera! pre-war percentage for
| ness is the average percentage of
net income to invested capital for the
| pre-war period of corporations en-
| braced in such general class. de-
| termined as nearly as may be by
| the commissioner of internal revenue,
with the approval of the Secretary
| Of the Treasury. from the returns
made for the first taxable year un-
| of the following classes of trade or
| business: Manufacturing. mining.
mercantile, financial, transportation
| by land, transportation by water.
| public utilities other than transporta-
tion, and miscellaneous.
Suggests Pre-War Percentage.
''The general pre-war percentage
shall in no case be less than per cent
nor more than II per cent. and with
/ in these limits the determination of
the commissioner of internal revenue
shall be final.
THE general percentage for any
corporation shall be the percentage
determined for the general class of
trade or business to which such cor
poration belongs. II the corporation
| is engaged in more than one general
class of trade or business. the per-
\ centage shall be applied to its prin-
| cipal trade or business. The war
profits deduction shall consist of a
special exemption of $1,000 plus, at the
option Of the corporation, either an
amount equal to the general pre-war
percentage of its invested capital
for the taxable year. or an amount
equal to its average net income for
the pre-war period, increased or di-
nninished. as the case may be. by an
allowance for changes in invested
capital since the pre-war period"