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Show M'ADOO FAVORS I FLATTAX RATE Sends Explanatipn of His Views on Tax Measure to House Committee. CHICAGO, Aug. 7. William G. Mc-Adoo, Mc-Adoo, secretary of tho treasury, tonight to-night declared himself unreservedly In favor of a flat war profits tax of 80 per cent. "The adoption of an 80 per cent war profits tax should render unnecessary un-necessary and, I believe undesirable, any increase in the existing excess profits tax rate," ho declared. In presenting- his views on tax measures now before congress, Secretary Sec-retary McAdoo addressed tho following follow-ing telegram to Claude Kitchin, chairman chair-man of tho ways and means com'mlt-teo com'mlt-teo of tho house: "Roper has advised me of his talk with you Wednesday last. I greatly appreciate ap-preciate assurance you gave him of your desiro to meet as far as possible tho views of the treasury. I should be very sorry to have progress on the revenue bill delayed for conference concerning war profits tax as I understood under-stood is suggested. This matter has engaged my earnest thought and In order that you may know my views without delay, I take tho liberty of telegraphing to confirm and re-en- dorse the program outlined in my let- , ter to you of June 5 and to express the conviction that that program is sound and reasonable. "I earnestly hope it may commend itself to you and the committee. I regard re-gard tho war profits tax as an inte- ' gral and indispensable part of that program. As a result of th,e further consideration of the subject which has been given since I wroto you, I am confirmed in my opinion that a flat war profits tax of 80 per cent should be imposed. im-posed. Of course, ample safeguards should be provided against hardships In extraordinary cases In the application applica-tion rf mi n V-i . A mi i . i k ui buuh a iulw. me auopuun oi an SO per cent war profits tax should render unnecessary and I beliovo undesirable un-desirable any increase in the existing excess profits tax rate. "It is my strong conviction that the ' taxation of genulno war profits is the only way to reach real war profiteering and that it is at the same time a thor-1 oughly justifiable measure upon econ- I omic grounds as well as a certain and i indispensable producer of a largo part of tho required revenue. I "The patriotic producers of Amer- ' ica should be content if one-fifth of their war profits are secured to them, especially when wo reflect that the men who aro fighting and dying in I Franco to save the liberties of those, who stay at homo and mako it possible pos-sible for them to continue in business are limited by act of congress to $396 per year for their services and have to givo their blood in tho bargain. "Should we be more partial and tender ten-der to those who are protected in safety at home than, wo are to those who mako tho supreme sacrifices for us on tho field of battle? I slncerelv trust also that amendments which experience ex-perience has shown to bo desirable, If not essential to the provisions affecting affect-ing the determination of oxcess profit pro-fit taxes may bo adopted." Secretary McAdoo, who spent the day inspecting Chicago railway facilities, facil-ities, also announced that tho next Liberty loan and any others that may follow, will bo on a 414 per cent basis. "Tho public should realize," ho said, "that if tho rate were raised thev would simply bo 'hanging themselves by their own bootstraps.' The situation must bo kept sound by stabilizing tho rate at 4VL per cent 'interest It is to the Interest of tho people, tho banker and the business men, because if tho government raises its bid for money, then all industry will have to pay proportionately more for now capital." Secretary McAdoo departed lato tonight to-night for Cincinnati from where he will return to Washington. nn |