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Show to, JCO'j'). I'nder the income tax rate j previously adopted by the cumin litre, of Is jj'-.r cent on un lis'Mbuled profits and 1- per ctjit on promts distributed t1' shareholders, if one-half of the profits were dlMrluuted, the corporation wouid pay as liyurne tax Stl'lC. 'this makes a lotal of Jij.s'i.',, 1-avirig to tile corporation corpora-tion $:pj,21u, or 3'J per cent of Its net Income. Under the same method, a corporation making If, p,-r cent would rave about 13 per cent feftl one making 20 per cent would have 14 per rent left, and one making mak-ing &u per Cent would have 2u per cent left. Long Discussion Held. The. committee held a long discussion on the question of defining "invested capital. cap-ital. " and at length decided to leave this as It Is ln the existing law. There were some members who favored the Inclusion of borrowed money as part of the invested in-vested capital, but no decision was reached on this point. An Important feature of the new excess ex-cess profits lax is that It applies only to corporations, thereby virtually repealing section 20i of the present iaw, which Imposed Im-posed an excess profits tax upon incomes derived ln professions. Many members of congress regarded this section as obnoxious, construing It as a tax upon Intelligence and learning. The repeal of the section goes a long way toward accomplishing the desired end of differentiating between earned and unearned incomes. Large incomes derived through the professions will he reached through higher normal and supertaxes super-taxes on individual Income;. The committee Is hopeful that the excess ex-cess profits taxes agreed upon will yield the sum of Jl.GDu.uuu.OGO. The eomrntt-teo's eomrntt-teo's exports have advised that If the present law brings a return of $1,200,-000,000, $1,200,-000,000, the new rates will produce the sum mentioned. If the yield from the present rates Is not more than $1,000,000,-000, $1,000,000,-000, as is more generally believed. In view of the price fixing and the higher cost of labor and materials, the new ratee will then produce not more than $1,4'J0,-OeO.000, $1,4'J0,-OeO.000, the experts report. The committee adjourned until Monday, when It will delve Into the nuemlon of luxury taxes. The falling off In the yield from Income and excess profits taxes below what the treasury counted upon will make It necessary for the committee to find some new sources which may be taxed. Practically $::,50O,OOO,00O will have to be raised from taxes other than the Income and excess profits schedules. LUXURIES T0 IE HEAVILY TAXED II HEVEHUE SILL Excess Profits Will Not Be Hit So Hard as Generally General-ly Predicted for Some Months Past. COMMITTEE ADOPTS NEW FEATURES Efforts Being Made to Raise Amount of Money Needed Without Affect-ing Affect-ing Business. By JAMES R. NOURSE, Staff Correspondent Univorsal Service. V A H 11 1 N r; T ON, July 2 fi . T h e wa y a u ml mean.s comniltteo today formally adopted for the new revenue bill a schedule sched-ule of excess profits taxea estimated to yield $1. film, U00, DUO during the next fiscal year. It was also decided that In levying theno taxes lire-war profits of the corporation cor-poration would be entirely ignored and the revenue will bo collected solely upon the 1 not Income for tho taxable year. The first of these decisions, both of which are of Importance in tho general framing of tho bill, was reached after the committee had been advised by treasury treas-ury experts that it would be unwise to attempt placing uny heavier burden on American business than the rates adopted will Impoee. The second decision means that corporations and organized business generally will pay only on what is made during tho year, without regard to whether these profits are greater or less than they were before this country en- , tored tho war. 1 The rates will be as follows: Proposed Rates. Thirty per cent on the net income in ' excess of exemptions and not m excess of 20 per cent of the net income; 5U percent per-cent in excess of 20 per cent of the net , income and not in excess of 25 per cent; Hi) per cent on tho net income in excess of 2a per cent. The rates are tho same as those tentatively tenta-tively agreed to by tho commit tee yes- terday. The exemptions will be $2)i)0 , plus 10 per cent on the amount of capital cap-ital Invested. A majority of the committee favored a proviso to the effect that in no case should the excess profits tax exceed 60 per cent of tho net Income nor be less , than iu per cent of the net income in the cae of corporations with a capital exceeding $200, UUU. Common carriers and public utilities corporations whose rates : are subject to regulation by federal, I state or municipal government would be excepted from the 10 per cent minimum. Individuals and partnerships are not included. in-cluded. Revenue Still Short. Although it was admitted by members of tho committee that the new excess profits rates would leave the committee short by one and a half billion dollars of the total amount which was expected to be raised on income and excess profits taxes, the general feeling among the members was that it would be unsafe to ko higher in taxing the profits of business, and that higher rates would merely, mean the disruption of organized industry. Those who had argued for a fiat tax of 70 or SO per cent on the profits of all business reluctantly admitted that the returns from the treasury would not .justify such an exorbitant levy upon the business of the country. This was the more readily seen when calculations were submitted to the committee com-mittee showing how the tax will work out. For example, a corporation organized or-ganized with $100,000 capital, making a profit of 100 per cent, or $100,000, would pay, under the excess profits rate agreed |