The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1919-02-28
PRESIDENT SIGNS
BIG WAR TAX BILL
AffKes Signature to Measure
While on the Train.
WASHINGTON is "B0NE DaY'
Document Carries a Rider Which Pro-
h:bits Liquor in the District OF
coIunbia-U. S. to Pay War
Debt in IS Years.


washington. Feb. 26.-President
Wilson arrived in Washington at five
o'clock in the morning from Boston
where he landed Monday from the
transport George Washington. Be-
cause of the early hour he and Mrs.
Wilson remained on their special train
until $40 when they drove to the
White House.
Passing through the station win a
brisk step. Mr.. Wilson found a cheer
ing early morning crowd of travellers
awaiting him. He acknowledged the
applause by lifting his hat and smll-
ing. Many scores of soldiers in the
crowd stood rigidly at attention as
the commander in chief passed by.
Announcement was made on the ar
rival Of the presidential party in Wash
ington that the president had signed
the $4,000, 100000 war revenue bill.
The bill was signed aboard the special
train Monday night before the presi-
dent retired. This measure carries a
rider making the District of Column
bia bone dry.
U. s. to Collect $4,000, 100000.
Signing of the revenue bill by Pres
ident Wilson puts into operation the
machinery for collecting $6,0O0,OOO,OO0
of taxes this year.
Higher taxes provided in the new
bill go into effect at once on liquor
and soft drinks, including near beer,
grape Juice, soda water and mineral
waters. and on tobacco and sO-callee
Iuxuries. Anticipating the imposition
of new taxes, thousands OF gallons OIL
whisky have been withdrawn from gov.
eminent warehouses within the last
week. with tax paid at the old rate of
1920 a gallon to escape the higher
rate of $6.4O a gallon now effective.
Articles in the luxury" class on
which new taxes go into effect today
include automobiles and motor acCes-
series. pianos, sporting goods, chewing
gum, cameras, candy, firearms slot ma
chimes. toilet soaps and art goods. The
tax is paid by the manufactures.
Features of New Tax Bill.
Other features Of the tax bill which
went into legal effect Tuesday, but
which are retroactive and which con-
sequently are not practically affecred
by the time of the signing of the bill,
include the following:
Taxes on incomes, excess profits
and war profits; estates and inherit
ances; and excise taxes on a number
of special businesses such as brokers,
bowling alleys, insurance companies,
theater and amusement place prOpri-
etors, and liquor dealers. Drastic
measures to prevent the narcotic drug
traffic become effective at once.
On April 1 new taxes on railroads
and steamship tickets, pipe lines, In
surance, theater admissions and club
dues and variety Of stamp taxes be-
come effective. Levies against the ex-
cess of value of so-celled semi1uxuries,
such as articles of dress, will be made
after May L. The soda fountain tax
becomes effective May /. Taxes on
products of child labor will be inn
posed in 60 days.
Without awaiting signature of the
bill by the president the internal rev.
enue bureau has gone ahead prepar-
ing to administer the law. Tax re-
turn forms and regulations are being
Issued and income and profit tax re-
turns must be filed by March Is.
$1,000, 100000 Year for War.
1t will cost the American people
about 81, 2OO. 100000 year for the next
% years to pay off the war debt, ac-
cording TO estimates of the treasury
based on incomplete knowledge of pre-
cisely what the final war debt will be.
This calculation is made in the as
sumption that the net war debt, with
deductions for loans to the allies, will
be in the neighoorhOOd Of $1S,OO0,OOO,-
600. Interest on this amount at the
rate of Az per cent would be $765, 1000
600 year, to be raised by taxes
and then repaid to b0ndhOlderS. In adj
dition about $417,000,00O would have
to be provided every year as sinking
fund to redeem all bonds in 25 years.
This would require cumulative
sinking fund provision Of 2.32 per cent
Congress has not yet authorized estab-
lishment of sinking fund as recon.
mended by Secretary Glass.
Treasury officials assert that if this
authorization is given bonds might be
bought up on the market each year or
called for redemption at the periods
provided in terms under which they
were sold.