Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-02-07
FAT WAR PROFITS
ARE HARDEST HIT
Conferees' Agreement on Reve-
nue. Bill Submitted to
Congress.
SENATE REVISION RETAINED
Movie Patrons Petitions Cause
Increase on Admissions to
Be Stricken Out.

measure In the history Of the world was
formally pre8e to-day in the House,
ana viii DC called uD Saturday /; had
been six months in the making, had
becn passed once by the House and
had been revised twice to meet the
transitions from war to peace and
from wet" TO a dry" nation
Representative kitchn. the Demo
cratic leader. expects the House TO
approve the mecsure-aGreed TO by the
Senate and House conferecs-bcforc
adjournment Saturday night, and Sena-
tor Simmons, chairman OF the Senate
FINANCE Committee. will present il in
the senate as soon as the House has
houses III the form in which it was re-
ported by the conferces is confidently
expected by party leaders.
me completed measure will not be
sent to France unless the Presidents
departure for home is delayed we'll be-
yond the date now set for his sailing
The President is expected to sign the
OIL soon aftcr his arrival here.
The conference report, presented to
the House by Majority Leader ki:chin,
is regarded as assured OF adoption by
both House and Senate and OF approval
6y the President. II thus promises to
be the future American tax levy, which
now Is about S4.3T0, 900, 900.
Besides this years tax levy Of about
20 be raised by- bonds and other means.
are estimated by the Treasury at
about $4,000. 100000
VIRTUALLY ALL RATES
REVISED DY SENATE: STAND
Except for slightly increased war
porations' income tax rates for 1920
virtually all the rates. as revised in
the bill PASSED by the Senate. are ap-
proved BY the conferecs and remain
in the final conference draft
Like the original House bill and the
Senatcs revision, the bulk OF the taxes
are levied upon war excess profits of
and corporate.
Rates OF the Senate on t-anspor,a-
tion. beverages, cigars and tobacco
luxuries and semiluxuries, stamp and
special taxes. all, substantially were
adopted by the c6nferees. while the
Hcnse rates on estates sud insurance
The principal rate increases agreed
10 fnEconrefence were to raise the cor
porstton income rate FOR 1920 from 8
per. cent, as proposed by the Senate,
to 10 per cent, and an increase from 90
TO Go per cent IN the second bracket"
or sliding rate on corporations excess
profits for this year
EIGHTY PER CENT WAR
PROFITS TAX ADOPTED
The 50 per cent war profits tax for
this year was adopted, and upon In
ststence by House conferees, extended
TO 1870, but made applicabi next year
ment war contracts. The excess profits
bracket" rates OF 20 TO 40 per cent
Tor 1920 also were approved.
Virtually all the so-called relief pro-
visions or cushions" or the Senate,
designed TO prevent hardships in i'm
position of the corporation taxes. were
adopted.
In the important income tax section.
the bill retains all Senate rates, normal
and surtaXes, including that of l2
per per cent,on corporations. income Of
~ allowed, bu, fixed the rat te for subse-
quent years at 10 per cent
The IL per cent normal rates on in
dividual Incomes earned last year and
are retained with Individual excep-
tions OF $1,000 for single and 81. 1000 for
married persons and an additional cI-
emption Of $500 for each dependent
minor Also adopted are provisions
that Individuals shall pay only 6 per
cent this year and ! per cent there
after on the first $4,000 subject to
tax above exemptions.
The Senate individual surtaxes, rang
Ing from ! per cent on incomes be-
tween $1,000 and $4,000 to 65 per cent
on more than S1.o0o.oo0 also were ap-
IMPORTANT PROVISIONS
ADOPTED IN CONFERENCE
or the important general legislation
and riders" the conference adopted
The following provisions:
lsevyinS prohibitory tax on pro-
ducts OF child labor.
Restoring prewar postage rates on
letters ,e9,S, ana post cards July l next:
ali persons ia nny ISs DHnns Of $50 for
ment, officers and enlisted men alike.
Extending the.Reed bonc-dry prohi-
bit:on law 10 the District OF Columbia
Increasing G from S25 to s1,00o'the tax
OH those dealing In intox ican:s in
cludinS stills" In prohibition terri
tory.
PRESIDENT MUST PAY
TAX ON HIS SALARY
For taxation OF salaries Of Federal
ofhcials. including the President and
Judiciary, but not OF State officials
For submission OF all government
contracts BY contractors on demand OF
the internal Herenue Com ISIS ioner.
For exemption of 20 per cent 10 oil
proSpectors.
Establishing an advisory tax board
of six members in the Treasury.
Restricting sale and use OF narcotics
by strengthening the Harrison drug
IMPORTANT PROVISIONS
STRICKEN FROM MEASURE
Among important Senate or House
provisions stricken from the bill were:
second class postage zone rates and
proposed Substitution OF decreased
charges:
The so-called Thomas amendment
which proposed 100 per cent taxes on
political campaign contributions in ex-
cess of $500.
House amendments for Federal IL
cense tax on use OF motor vehicles;
the so-called business license" of sl0
on business and professional men earn
ing $500 or more.
Senate taxes on inheritances. for
which the conference substituted
House levies on estates; the House
tax OF cents a gallon on gasoline,
and House amendments to tax State
tiles.
Although most OF the Senate rates
In the bill are retained, tho conferees
made many important changes affect
ing income and war excess profits tax
alton. rewriting scores OF amendments
and virtually redrafting substantial
part OF ith,s measure sl g5s, y
In agreeing upon war excess profits
taXes. Ito olaSorporationRl The cnnfAr rans