The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-02-06
WHAT AMERICA
WILL BE TAXED
Long Delayed War Revenue
Bill Submitted to Congress
by Conferees.
AD OPTION ASSURED
Important Riders Give Pre-
War Postage-Tax Fed
eral Officials.
ADOPTION ASSURED

i
submission to congress today of the
! conferees agreement on the long
| delayed war revenue bill, the Amer.
ican people were presented with their
prospective federal tax budget fol
| 1919 and ensuing years--somethina
over $6,000.0 100000 this year and ST.
600, 100000 thereafter subject to the
revision Of future rates expected tc
be undertaken by the next congress
The conference report submitted t6
the house my Majority Leader Kit
! chin, is regarded as assured of adop-
.tion by both house and senate, and
of approval by the president. It thus
promises to be the future American
| tax levy. which now Is about $4,370,-
100000. Besides this years tax levy
Of about $4,000. 100000 additional
treasury needs to be raised by bonds
and other means, are estimated by
the treasury at about $4,000, 600, 900
Except for slightly increased war
excess profits rates for 1919 and
corporations income tax rates for
1920, virtually all the rates as re-
vised in the bill passed by the SEN
ate are approved by the conferees
| and remain in the final conference
draft. Like the original house bill
| and the senate's revision, the bulk OF
the taxes are levied upon war-excc IS
profits of corporations and on in
comes, individual and corporate
Rates of the senate on transporta-
| tion, beverages, cigars and tobacco
, amusement admittances, club dues
luxuries and semi -luxuries. stamp
| and special taxes, all substantially
were adopted by the conferees, while
the house rates on estates and in
surance were reinstated.
Principal Rate Increases.
The principal rate increases agreed
to in conference were to raise the
corporation income rate for 1920 from
eight per cent, as proposed by the
senate, to ten per cent. and an in
crease from sixty to sixty-five PEI
cent. in the second bracket" OF
sliding rate on corporations excess
profits for this year. The eighty per
cent war profits tax for this year
was adopted, and upon insistence by
house conferees, extended to 1920
but made applicable next year only
upon such profits from government
war contracts. The excess profits
''bracket'' rates of twenty to forty
per cent. for 1920 also were approved
Virtually all the so-called relief
provisions, or "cushions" Of the SEN
ate, designed to prevent hardships
in imposition Of the corporation taxes
were adopted.
In the important income tax Sec
ton, the bill retains all senate rates,
normal and sur taxes, including tina.
of twelve per cent. on corporations
income of last year in excess OF
credits previously allowed, but fixes
the rate for subsequent years at
ten per cent.
Rates on Incomes Retained.
The twelve per cent. normal rates
on individual incomes earned last
year, and the eight per cent. rate
payable in 1920, are retained. with in
dividual exceptions Of $1,000 for
single and $4,000 for married persons.
and an additional exemption of 5000
for each dependent minor. Also
adopted are provisions that individ-
uals shall pay only six per cent. this
year and four per cent. thereafter on
the first $4,000 subject to tax above
exemptions. The senate individual
sur taxes, ranging from one per cent.
on incomes between $4,000 and $4,000
to sixty-five per cent. on more than
81, ,OOO, ,00s also were approved.
OF the important general legisla-
ton and "riders" the conference
adopted the following provisions:
levying a prohibitory tax on pro-
ducts of child labor; restoring pre-
war postage rates on letters and post
cards July 1, next; Providing pay
bonus of $50 for all persons in the
military establishment, officers and
enlisted men alike; extending the
Reed "bone- e-dry' prohibition law to
the District of Columbia; increasing
from $25 to $1,000 the tax on those
dealing. in. intoxieants,. including
"stills" in prohibition territory; for
taxation of salaries Of federal of
ficiaIs, including the president and
judiciary, but not of state officials;
for submission Of all government
contracts by contractors on demand
of the internal revenue commits
sioner; for exemptions of twenty per
cent to oil prospectors; establishing
an advisory tax board Of six mem
bers in the treasury, and, restrict
ina sale and use of narcotics by
strengthening the Harrison drug act.
Among the important senate or
house provisions stricken from the
bill were:
Proposed repeal of the publishers
second class postage zone rates and
proposed substitution of decreased
charges: the So called Thomas
amendment, which proposed loo
per cent. taxes on political campaign
contributions in excess Of $500; mousse
amendments for a federal license tax
on use Of motor vehicles; the So
called business license" of $40 on
business and professional men earn
ing $500 or more; senate taxes on
inheritances, for which the CONFER
ence substituted house levies on es-
tates; the house tax of two cents
gallon on gasoline, and house amend
ments to tax state and municipai
bonds and other securities.
Although most of the senate rates
in the bill are retained, the con-
ferees made many important changes
affecting income and war-excess
profits taxation, rewriting scores OF
amendments and virtually re-draft-
ing a substantial part Of the meas
ure.
In agreeing upon war-excess prof.
its taxes Ito corporations) the con-
ferees struck out the house alter
native plan to levy on war or ex-
cess profits according to the. highest
yield, adopting the senate composite
nlan. The pre-war standard of cal
endar years Of 1911. 1912 and 1913,
was retained. as was the system OF
credits:
Corporations with incomes less
than 1900 are exempted. Other linn
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