| Show DRY LAWS MAY MAKE CHANGES IN WAR TAXES C Chairman i I Finishes g Revenue Bill to Con Congressmen Washington ton Sept 7 explanation 7 of or the tho revenue re bill was wal concluded in the Iho House tOlla today b by Chairman Chaliman of or ortho tho wa ways way s and means committee committee- e. e Mr Kitchin started speaking yesterday members hors said 11 his Is address was waH the lire thelon lon longest ever o delivered ered In III the Probable effect of or prohibition legislation legislation legisla legisla- tion on the nations nation's reV revenues was discussed discussed dis dis- cus cussed h by Mr 11 I in explaining tho the bovera beverage c section of the war tax measure meas meas- ure Ilo Ile also took look up the war and execs ex- ex ex excess x- x cess profits features U us as well a as those affecting corporations and luxuries General debate on the bill hill will continue continue continue con con- next week and leaders loaders tonight revised ro their predictions for passage of or orthe the measure next Saturday a They be believe believe be- be lieve lie now that minor committee re revisions revisions revisions re- re visions possibly of or tho tiro liquor taxes because lUse of or pending prohibition legislation loris legis lation laUon anti and debate will prevent a n 1 vote ote before September 17 or 18 Mr 11 Kitchin in his speech said the the I I I bill should be enacted by both houses of Congress by November 1 and he expressed ex expressed ox- ox pressed the tho hope that another war revenue rC measure next year ear would not be necessary although h ho sal said that if national lIonal prohibition Is enacted new tax tax- sources will have to bo be found to replace tho the estimated tax on al alcoholic alcoholic alcoholic al- al coholic beverages bc provided pro for tor In the present measure freer Taxes 11 Are Arr Lout S Such ch le legislation Mr KitchIn said probably will not be necessary before next year car although the tho administration or order er announced yesterday e stopping tho rho manufacture of beer December 1 next 1 ext will cause a n. loss under the present present pres pres- ent bill hill of oC about 1 We Ye feel leel that tho the till is 13 not too hard on corporations We e are not so 80 I hard on them as os at first blush t mi might ht seem Were We're not confiscating their incomes In Incomes In- In I comes om s said Mr 11 Kitchin in commenting comment comment- ing log Ingon on the Increase of oC corporation comment I In Income Income In- In I come tax lax from G C per cent to 18 per cent The allowance for a G per pcr cent rebate on J dividends distributed he added would stimulate payment to stockholders and increase jas federal re receipts receipts re- re front from individual Income sur sur- taxes Representative Long Longworth Republican Republic an interrupted to suggest that tho the only essential differences between the thc committee committee com com- and tho the treasury department was w-as over o the proposed rebate ato and the increase in excess profits s rates Public Declared nl Deceived Ive I seen been reports of oC a great groat reat contest contest contest con con- conI test n a conflict with w-ith Secretary McAdoo Representative KitchIn re replied replied re- re plied E Cl Every man on the committee knows there hasn't been one r report port wh which ch was not Ivan not apparently a. a t r. deliberate misrepresentation and deliberately d de designed designed de- de signed to deceive the public This bill is satisfactory to the secretary sec- sec r and other tle treasury sury he he- continued Representative Longworth's statement of oC the thc only two essential differences which h he s said were pleasant and not acrimonious differences Representative Moore of or Pennsylvania Pennsyl- Pennsyl vania Republican observed that the tho treasury had made man many sU suggestions to the committee which it had not accepted accepted accepted ac ac- ac- ac and Representative Kitchin said all these had hall been beep threshed out Democrats applauded wh when n I 1 I I I I Longworth said iI that t as tl tic the e bill hili raises onI only part palt of or the revenues re needed it was no derogation of or House dignity to lo consult with treasury officials of or- Objection l J Jl tt Regarding the difference over o In Increasing Increasing In- In crensh creasing excess profits rates Representative Representative Kitchin said the tho committee had been unanimous for tho tiro increase despite the treasury's objections It was the tho only right wise and fair all thing to do he said Otherwise some oma successful l corporations would be guaranteed guaranteed guar p that their taxes shoud not be raised a penny penn while 90 per c r t would have havo taxes axes increased from j to tu 00 per cent I Tho rho corporation income tax rat rate rato of or ofIS ofIS IS S per coot cent he said will be he less than half haIr of the tho present British tax and the committee had hall ma made e provision against the excess profits taxes bearing hearing heavily ily 11 on small corporations by placing only approximately 10 p per r cent of oC burden burden burden bur bur- den on excess profits and 90 per cent centon centen en on war Walt profits The Tho excess profits plan the hc majorIty major major- I ity leader said would raise more moro revenue revenue reve reve- nue than the war profits plan Im but hut he and Representative e emphasized emphasized sized that alternative c plan of oC taxing corporations under both tho the war and exec i profits plan plan whichever whichever will will bung bring most lo to the government Is Is made mandatory tulY upon the treasury treasur department department department depart depart- ment Explaining Inheritance tax ta Increases I Mr rr Kitchin said mid tho raise from rom 25 S to 10 40 11 per 1 cent In the maximum rate on es- es I j taxes tates over O was a I good healthy Increase To a a. suggestion that orders order's of or the war Industries ics board are resulting in in hi curtailment of manufacturers manufacture profits Mr Ir Kitchin said In estimating revenues re from this bill we estimated that conditions would go EO alon along about l as they have been Of OCI course ourse the tine war 01 Industries board bond could I Issue sue or orders ers that would destroy 1000 or even wen of or revenue revenue reve reve- nue but were we're re roping hoping and assuming that the they will not so flO exercise ex their power as to tu materially reduce revenue reve ro nue Several Se members asked if Ie an any i thought thO had 1311 been given hon to sources of or of revenue to lo supplant losses from prohibition pro pro- fu suggesting consumption taxes on coffee sugar and other luxuries I r think weve we've covered about nil the tho luxuries wo could think of oro Mr 11 latchin said ald explaining that Hint a 1 c cent nt tax on tea brings 8 only We Re will have hn to wait walt until con con- then existing when wilen a new non billIs billis bill billIs Is written are arc seen he added Sometime Sometime Sometime Some time we wo may have to come to more moio 1 taxes BlIt conditions condition will hill be d different differ different differ differ- 1 ent If It Is next necessary year Cal to toI write another revenue hill bill I hope honc it I will not bo be necessary Ma Maybe Ia be wo o might get et to tl more from tariff Increases AI Also o we could Icv levy consumption tax taxes gross gros rosl sales taxes and we might In Increase increase in- in cr crease the Income tax tax on the small bracket and get ct to tn J S nut Hut you could not get Jcl un any ou out of or tea and coffee When hen asked asker how soon the increased beverage e taxes would go o Into effect Representative c said As soon Aft as s the Senate pa MCl tho the hill bill We Va hope It Il will bo hI effective b by November 1 1 We e think it ought to lo be bea passed a b by October 15 |
