New-York tribune., 1919-02-08
Merchants to Win
Fight on Luxury
Tax, Says Kitchin
Promise Is Made to Repeal
Section Oh the Condition
That No Other Change Is
Made in the Measure
Neu York Tribune


WASHINGTON, Feb. Z. - It was
learned authoritatively to-day that
Chairman Kitchin, of the Ways and
Means Committee, will offer a Joint
resolution repeating section 9O4 Of the
revenue bill--the semi-luxury tax sec
tion-and thus eliminating the feature
OF the bill which is meeting with so
much opposition from merchants. on
condition That no advantage be taken
of this move to REPEAL any other part
OF the bill, which will then be law, or
to add anything to it.
If satisfactory guarantees can be
given to Mr.. Kitchin that every other
part of the law, and the second class
postal zone subject, will be left Sc
verely alone, he will introduce rcso-
luton repeating the obnoxious s.mi-
luxury taxes. These are the 10 per
cent taxes on the amount by which the
selling price of various articles OF ap-
parel and personal use exceed the min
lmum prices named in the bill.
1t is Mr. kitchin's expectation to
put the bill through the House without
a hitch tomorrow, and Senator Sim
mons has undertaken, in that event
to put it through the Senate on Mon
day.
Revenue Fixed at SCOT, 200, 900
Off1cial conference estimates issued
today place the combined revenues un-
DER the new bill! and the present law
Tor the fiscal year ending June 20
next, at $6,077,200, 1000. The official
estimate of the revenues for tho suc.
ceedlng year is $4,184,o30, 900. The re-
ceipts ror the lats fical year are given
as S3612,oA7,0O0. According to the first
OF the above figures Mr.. Kitchin can
claim credit for increasing the current t
tax bill Of the American people bv
$48,oO0,000. as the corresponding es.
innate on the Senate bill was S6,o29.-
100000. @''0-''
!, on full twelve months of the bill
that is about to become law the rov-
enues would, according to estimate. be
So,Io8,260, 200, whereas the Senate form
Of OF the bill would have yielded S5.s15.-
1zoo'V00, so on this basis of COMPARISON
NJ hitchin has added S173, 100000 to
Two Laws Cover 1919 Tax
The assumed twelve months, ner;od
is held to be better for comnara no t;va ;va
purposes in measuring the taxinr "a
paclty Of the two bills, althoupb sc
matter Of fact, the taxes to he na;d
III 1919 will be partly under the nres. res
ehC law and partly under the new lar,
owing to the fact that the new Xii
becomes effective in the middle of the
fiscal year. "0'o VI '"e
Inc figures submitted in regard to
estimated revenues throw an Interest,
ing light on what prohibition is cost
Ing ing the country in the way of taxation.
When the revenue bill was orig;naIi,, =,
introduced into the House the beyera ge
taxes We're estimated at s1,137 eco .060
Tor tuli twelve months. For the cnr.
rent fiscal year they are expected ia
yield only $3.50, 100000, and in 1921
they will drop to S75 100000 " ~
now is, in view of temporary and in, '
pending national prohibition, the rev. ,,
enue pill as originally introduced in
'ne House represented revenues in
twelve months Of S7.179971 900 instead
OF the widely proclaimed $3.50, ,ooo, 900.
Tax Receipts Estimated
The following table gives the csti.
mated tax recei pts under the pendino
bill for the fiscal years ending June 40
1919 and 1920: O'