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Show TAXES UN AUTOS Changes Are Made in War Revenue Measure Reduction Reduc-tion in Income Tax. WASHINGTON, June 1. Exemption Exemp-tion of popular price moving picture theaters from amusement taxes and the levying of a new federal license tax on automobile owners, ranging from $7.50 to $25, with reductions for cars used a year or more, were agreed upon today by the senate finance committee com-mittee in continuing revision of the house war tax bill. With its tax virtually completed' except ex-cept for the newspaper and magazine section, the committee tonight adjourned ad-journed until Monday. Tomorrow Senator Simmons, chairman, chair-man, and Senator Penrose, ranking Republican Re-publican member, will confer informally infor-mally with representatives of publishers publish-ers and postoffice department officials regarding tho proposed taxation of publications in lieu of the increased second class mail rates In the house bill. In the committee's amendment all moving picture theaters charging less than 25 cents admission would escape the tax of 1 cent on each dime paid imposed by the house measure. Senator Sena-tor Penrose championed this change, urging that the moving picture houso I Is the poor man's theater. It was decided de-cided to retain the house plan of taxing tax-ing other places where admission Is charged. Tax on Automobiles. Treasury experts estimate that there are 1.400.000 owners of automobiles subject to the $7.50 tax, 760,000 subject sub-ject to the $10 levy, 1,219,000 In the $15 class, and 231.000 subject to the $20 tax. Tho license taxes are payable by motor vehicle owners direct, and take the place of the house tax of 5 per cent upon manufacturers of such vehicles. The committee's section would provide: pro-vide: "That on and after July 1, 1917, spe- cial taxes shall be, and hereby are, im- posed annually on owners of automo- J biles and motorcycles, the rate of tax l to be based on each automobile or mo- t torcycle as follows: "Motorcycles, $2.50; automobiles jH listed retail price at time of purchase H not over $600, $7.50; over $500 and not H over $1000, $10; over $1000 and not IH over $2000, $15; over 2Q00 and not over H $3000, 20; $3000 and over, $25. H Manufacturers Immune. H "Provided, that tho special taxes M herein imposed shall not apply to '' manufacturers and dealers as to un- '.H sold automobiles and motorcycles held M for sale, or to owners of automobiles .H or motorcycles used exclusively for H business; provided, further, that evl- M dence of payment of the tax shall be M by receipt or stamp to be attached to M automobile, under such rules and reg- H ulatlons as may be prescribed by the jl commissioner of internal revenue, with M the approval of the secretary of the jH treasury, and, provided, further, that M the special tax paid within a fiscal M year shall not bo imposed again with- H in that fiscal year if ownership chang- jH A modification to be drafted later H will provide a reduction of 10 per cent mM in the license taxes for each year's 1 use of automobiles up to five years, or H a maximum allowanco of 50 per cent- M An amendment to income tax sec- H tion written into the bill today would iH repeal the provision Qf tho Underwood H act of 1913. providing for collection of H income taxes at their source, and re- jH quire those receiving tie taxable in- H i Luuiira iu jiuwic? uncut jj ujwuv wi. "vlj to the treasury. H Corporations to Report. j As a substitute for tho present re- jH quirement of collection at the source, H tho committee adopted a now princl- jH pie of "Information at the source" jH requiring corporations and others un- H der heavy penalties to report to the H treasury department the names of per- H sons and amounts of income subjeot H to taxation. This plan, the committee H believes, will provent much evasion, jH increase incomo tax revenues consid- jH orably and promote honesty of the H law's operation and enforcement Re- H ports will be required on all incomes jH in excess of $S00 annually. jH Tho committee will make no change JH in thejincome normal tax, surtax and JH exemptions of tho house bill, except H the elimination, previously agreed up- H on. of extra surtaxes on incomes of jH more than $-10,000. . H On tho theory of exempting from H taxation articles used by the poor, the H commlttoo, in changing cigar taxes, H decided to exempt from any taxation H increaso cigars made to sell for less H than -1 cents each. Inoreasos in taxes H on cigars agreed upon woro as fol- H H Levy on Cigars. H Upon cigars mado to sell from 4 to H 7 cents each, $1 a thousand; those sell- H ing bctwoon 7 and 12 1-2 cents, $3 per H thousand; between 12 1-2 cents and 20 H conts, $5 per thousand, nnd over 20 H Qents, $7 per thousand. Tho houso H rates generally were about tho same, H but were based upon difforent stand- H ards. H The committee also decided today to H repeal existing tariff provisions allow- H mg "drawbacks" to sugar refiners. H Senator Broussard of Louisiana urged H the action. The change, It is said, will H operato to benefit domestic sugar pro- IH ducers and incidentally reduce federal IH revenue about $16,000,000. Tho "draw- H backs" are virtually repayments of H customs duties to refiners after they H refine- and export Imported raw sugar. H |
