The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-02-06
WAR REVENUE
|. BILL REPORTED
TO CONGRESS
People Given Prospective Fed
eraI Tax Budget for Next
Two Years by Action in
House on Measure.

WASHINGTON, Feb. s-with the
submission to congress today Of the
Conferees agreement on the lOng-de-
layed war revenue bill, the American
people were presentd with their pros
pective federal tax budget for 1919 and
ensuing yeaT--Something over se,00o-
100000 this year and $4,000, 600, 600 the
year after, subject TO the revision OF
future rates expected to be undertaken
by the next congress
The conference report, submitted to
the house by Majority Leader Kitchin,
is regarded as assured Of adoption by
both house and senate. and OF approval
by the president II thus provides the
future American tax yield. which now
is about $4,3I0 900 ,000 Besides this
years tax levy OF about $4,000 ,o0o, 900
further treasury needs, TO be raised by
bonds and other means, are estimated
by the treasury at about $4,000 000,0 COO
Except for slightly increased war ex-
cess profits rates for 1919 and cor
pOrauons' income tax rates for 1920,
virtually all the rates, as revised In
the bill passed by the senate, are ap~
proved by the conferees and remain m
the final conference draft, Like the
original house bill and the senate's re-
vision, the bulk Of the taxes are levied
upon war excess profits Of corpora
tions and on incomes, individual and
corporate. Rates OF the senate on
tobacco, amusement admissions, club
dues, mxuries and semi-luNuries, stah1p
and special taxes, all substantially were
adopted by the conferees while the
house rates on estates and insurance
were reiustated,
Totals Compared.
Comparison Of the conference agree
ments for 1919 revenues with existing
law, follows;
Conference. Present law,
Income tax $2,2lS, 900 900 sl,45S,5 900
w ar excess
profits ..,, $500, ,OOO, 900 l7sl, ,OOO, 900
Estates &c.. 5000, 600 l00,000,O00
Transportation
and other fa-
cilities ...., $4,000, 900 250. 100000
Beverages O.. 4b0, ,000, 900 400, ,000, 600
Cigars and to-
6Noco ,..,, 2i5,OOO,OOO 2OO,OoO,O 900
Admissions Il
club dues Gl,oOO,OOo $4,000 600
Excise taxes
luNuries, etc $4,000 900 q. 100000
Stamp taxes Sl,000,000 32,O00,000
Special, floor
and nisCel-
laneouS taxes $4,000 900 2S6lT,000
Totals ,~S6 0S6, 900, 900 $3.50, 900
The principal rate increases agreed to
IN conference were to raise the corpora
tion income rate for 1920, from per
cent, as proposed by the senate, to 10
per cent, and an Increase from 90 to So
| per cent IN the second bracket" or
sliding rate, on corporations excess
| profits for this year The so per cent
war profits tax for this year was adopt
! ed and, upon inststence by house con-
| ferees extended to 1920, but made ap-
| pllCable next year only upon such prof
| its from government war contracts.
| The excess profits bracket" rates OF
20 and 20 per cent for 1920 also were
approved,
Virtually all the so-called relief pro-
visions or cushions" of the SENATE de-
signed to prevent hardshps in impos-
tlon Of the corporation taxes were
adopted,
Rates Retained.
In the Important income tax section
the bill retains all senate rates, nor
nal and surtaNes, including that Of IL
per cent, double the existing law. on
corporations income of last year, in
excess of credits previously allowed,
but fixes the rate for subsequent years
at s per cent,
The IL per cent normal rate on in
dividual incomes earned last year and
the 5 per cent rate payable in 1890
Continued on Page g Column 81