Salt Lake Tribune | 1918-08-18 | Page 3 | Will Provide Amount Needed

ILL PRIOE 11ITJEE8ED Chairman Kitchin Satisfied Revenue Measure Will Yield $3,000,000,000. Ways and Means Committee Commit-tee Still in Disagreement With Treasury Head. By JAMES E. NOTTRSE, Staff Correspondent Universal Service'. WASHINGTON", Aug. 17. Chairman Kitchin announced at the close, of today's to-day's session of the ways and means com-that com-that at last the J?, 000,000,000 -re has been reached in the draft of the revenue bill, which the committee has tentatively adopted. Of this sum, it is estimated that the 80 per cent tax on war profits will yield $2,600,000,000 and the excess profits tax $000,000,000, or a total of $3,000,000,000 from the profits of corporations and organized business. The remainder at the total amount of revenue sviU be raised by the Income and Inheritance In-heritance taxes and the special excise tsxes on luxuries, beverages and tobacco. Chairman Kitchin's estimate was made, however, in the face of the fact that the committee Is still in disagreement with Secretary McAdoo and other officials of tiie treasury department in the matter of the excess profits rates. j Refuse to Yield. The committee stubbornly refuses to yield to Secretary McAdoo's recommendation recommen-dation that the rates on excess profits should not be increased above the figures In the present law. Its calculation of theJ amount the bill will , raise Is based upon higher rates of excess , profits than will be acceptable to the treasury and which are likely to be modified to accord with Secretary McAdoo's views. The draft of the bill upon which the SS, 000, 000, 000 estimate was made by Mr. Kitchin provides for an assessment of 40 per cent on all excess profits between 8 per cent and 20 per cent of the capitalization capitaliza-tion and 60 per cent on all above 20 per cent. The deductions allowed are S per cent and $3000. These are so far above the rates in the present law that it is extremely doubtful if the treasury will agree to them. Open for Compromise. Mr. Kitchin left the door open for further fur-ther compromises with the treasury by making it plain today that these rates have not been adopted by the committee. They have been suggested to the treasury treas-ury as a compromise between the present pres-ent rales, which are determined by Secretary Sec-retary McAdoo, and the 30, 50 and SO per cent formerly agreed to by the committee. commit-tee. The treasury has been asked to give an onion on them, and experts of the rWVtmctit are now at work attempting find mit how the rates would work. Mr. Kitchin stated that he believed the 10 to (10 per cent rates suggested to the treasury hv the committee would yield 51,000.000,000 more than the rates in the existing law and at least $300,000,000 yuorc than the rates previously adopted 'Vv the committee. 'iN: Would Escape. more than ofle in one hundred corporations assessed under the excess profits rates would have been caught in the SO per cent class in the rates winch the committee previously agreed to," Mr. Kitchin said. "On the other hand, M per cent of them will fall in the chuss making 20 per cent net income on their capitalization and will therefore pay 60 per cent." Under these war profits and excess profits which we have recommended to the treasury, if properly enforced, the law should yield no less than $3, 000,000, 000. Mr. McCoy, the committee's actuary, estimates esti-mates that the yield will be "nearer $;;,4(iu.ooo.oon. A report from the treasury on the com- ; mit Lee's recom menu at ions is expected nera Monday. Secretary McAdoo may i find it necessary to appear again before the committee to muke plain his reasons , for asking to have the excess profits taxes changed. I