| Show Rr VI ILl fA ES I l TAXES lI BY Y 4 LUO 1 I I It t rual s Revenue Program IQ Pf If V i Shipped lii t cl l Into Shape b by I ommittee Now T Is Ready f r or r Action b by the House i Sept The Thc 2 The new revenue c cn ven nue tic bill with a levy y I I cT la and business cou- cou 1 m t r h y r 1 a ul r r ell j o. o I. I 1 today to a by t IQ House was I means means' committee Chairman coin chin will Mill introduce it in tho louse lIons lorrow orrow and auel ask ash for tor consideration iday lay day I Leaders I hope to 10 send it to tc tc within ten days clays after de de- begins Cl lie e final committee estimate of the ther r nue to be yielded under he the neI new ne I k i is S SOI Ol 2 I a aJ against last year under tinder the thc t sent law The largest source e of mated revenue re is from taxes on ons r s s profits including din in ry war prof profits t s- s 10 01 rs r nod and the next is from C js s s on incomes incomes Sindi t individuals and Ii 1 corporations tion rh In tho taxes t on the if Incomes of oC married persona l h out ut dependents is shown by tho the t ti wing twing table I I Tax Under Uner I t I Law Law tOO OO tl 30 an iO JOl 0 rt GO 00 30 0 90 MOl 4 49 1 10 1500 61 t t OO 00 Sij 0 1 Sri CJ f rj 10 C oo C-oo IOl 15 7 00 IOl 1 lOO 00 Ij d r R t c s 8 ro O l 29 9 Ij OD G 50 g. g OJ I 1320 O MOO 1000 Sin n I Hi con OO 1580 1 i 2380 v r C 4 tOO SOO M 10 p 1St v 1 01 j- j r tI I 6 riSO 1 7 8 80 10 nO I I l s OO SO 1000 fl 1681 reggae IoV o 00 9 Hron I o 1 GI i OU 4 70 fI 1 j. l Th lie ox s under the nw w III bIh he une amo AS under the ID old 1000 I le persons and il 1 for marI mar mar- persons with 00 1 lach l 11 I ed got for ach n t child under Years tarA to An o exemption of or fOO f each port pot Ich fi doi lt I of oC self self- el uso 0 Jf mental or the ibe y also la 13 a I tr yield from sources 8 than neomer and excess and w war w include Giese R mt passenger fares fures Opp Opp Ilion 1 II seats and berths lt Dh n by Itle lttie O tele- tele and i l h ne n sa 1 tr tres n e. e 0 admissions II ib circuses es etc t dues ii S ae e tn il- il es Automobiles etc c c J oOOO 5 epo rung floods other r taxes on lux- lux t 10 per cent nt othor 1 IV Continued on Page Pago 5 i REVENUE Bill BOOSTS TAXES fOUR BilliONS Continued Co From Page Pago 1 taxes on oui luxuries apparel etc above certain prescribed prices at 20 per perCent percent percent cent gasoline g-asoline yachts and pleasure boats beverages bevera 3 liquors and soft drinks s stamp taxes tobacco cigars cigarettes tobacco snuff papers and tubes Special taxes Capital stock brokers theatres etc mall order sales bowling alloy billiard 1 and pool tables I shooting galleries riding academics academies aca aca- demies OOOO business license tax manufacturers of ot tobacco 1 manufacturers of or cigars manufacturers of or cigarettes use uso o of automobiles and motorcycles motorcycles motor motor- cycles 2 10 1 The report which will be bc made public tomorrow by Chairman KItchin ex explained cx cx- the provisions of the bill In de de de- tail It said the tho committee determined what proportion of the cost of or the war this year ear should be financed b by taxation taxation taxation taxa taxa- tion and by bonds not from previous experience as there was no analogy In history but upon thorough consideration consideration consider consider- atlon of or the thc c effect ct on tho the morale of the I people upon price Inflation upon production production pro pro- and upon relative ability of or the people to pa pay pa taxes axes now and after aCter the war Policy Dell Believed ed Sound The committee ed that it had decided upon the raising of or b by taxation because it had accepted as a sound fiscal policy the recommendation recommendation dation nation of Secretary tary McAdoo that one- one third o of the tho governments government's estimated expenditures expenditures ex ex- ex- ex pen o of 2 this year ear oe ne obtained from this source and the remaining two-thirds two by bonds While hUe the committee the report added makes this recommendation for forthe forthe the tho current year ear It realizes that no fixed policy as to relation of or taxes to toi i bonds for tor the future can be bo determined at this time and that the amount that would be raised by taxation In ha any given year ear must necessarily arlly be determined determined deter deter- mined after due consideration Is given I en business and financial conditions existing In such year car The committee further adopted the policy that so far faras faras faras as practicable the tho should be raised from taxes on Incomes ex excess excess excess ex- ex cess and war profits and luxuries and semi luxuries Tho The committee has en endeavored endeavored en- en to distribute equitably the new tax burden a arid d to lev levy the taxes in such a way that the thc byrden should be met mel b by those most able to pay It has endeavored to wipe out all Inequalities ties In the operation of or existing Internal Internal Inter Inter- nal irni revenue re laws which so 80 far as deemed practicable will be In one act and therefore more readily accessible to the tax payers Normal Tax Tor Of or 1 12 Per Cent The report said sard that the bill levied on all citizens or residents o of the United Unit Unit- United ed States a normal tax of 12 per cent upon the amount of Income In excess of exemptions except that on the first of ot the taxable amount tho the rate shall be bc 6 G per cent The mea measure ure also Increases the surtaxes all along aloni the I line inc The advance ad b by grades compared with the percentage e under tinder existing law lawI laware laware are to Incomes Increased I from 1 to 2 per pcr cent to from 2 to 3 per cent to OO from 3 to 7 per cent to from flom 4 I to 7 j per cent to from r 5 to 10 per pcr cent to from S to Iii ii per cent to 10 from 8 to 20 per cent to OOOO from frum 1 12 to 1 15 per cen cent t 50 to from 12 to 32 per pcr cent to from 17 li to 38 per cent to from 1 17 i to 42 percent per per- percent percent cent to from 2 22 to 46 per pcr cent to from 2 22 to IS 18 per cent to from 27 7 to 50 per cent to from flom 31 n to 50 per cent to from flom 37 to 5 52 per cent to from 12 to 55 5 per cent The rate rato continues to Increase but bul on Incomes over o the Increase Is only from 63 per cent under the present bill of or 65 per cent White under existing law only persons persons per per- sons souls of or lawful age have to make re returns returns re- re turns tho the now new bill requires persons under the tho lawful ago age and having a net income for the taxable year ear o of 1000 or over If Jr single or If Ir married 1 and not living ln with husband or wife an and l all married persons living with husband or 01 wife having a net Income of 2000 or over to tu make mako returns The bill hill levies les a corporation tax of ofIS ofIs IS per pcr cent upon the thc amount of or the thc net Income In excess of or the tho credits allowed but provides that the rate rato shall be 12 per cent upon so much of or this amount as does docs not exceed the dividends paid during during- the taxable year ear plus phu the tho amount paid during luring tho the taxable year ear out t l nt or nr 1 I In 11 la char charge e of bonds and other Interest bearing o obligations outstanding prior to the be beginning of that hat year ear This provision pro was aa under fire it In the tho committee today but without ehan change e. e Under it a corporation having net Income In excess of or Its credits which pays pas out during the year cal in dividends and discharges worth o of bonds would then bo be taxed 12 per cent on and IS per cent on The Tho committee believes that this rebate of or 6 per cent on distributed profits will stimulate the payment of or dividends dl which will be bo subject to surtax surtax sur sur- tax in the hands of th the stockholders The Thc bill makes no chango change In the corporations corporations cor cor- exempt from Income tax I f n I In n nt I a n Partnerships arc not liable to In Income Income income In- In come tax but each ench partner will pa pay his Income tax upon hl his share of the partnershIp partnership part part- profits whether distributed or not The Tho bill applies the tho war and excess profits taxes to corporations only Provision Provision Pro Pro- vision Ision Is made to protect corporations whoso invested capital Is less than and those corporations In which Invested capital Is not a material producing producing pro pro- duling factor Increases also were vero made mado In the es estate es- es tato tate tax which will vill range from froni 3 per percent percent percent cent to 40 10 per cent The Tho Increases as as' compared with the tho present bill follow Not Oot exceeding from 2 to 3 per percent i cent ent ent to 4 to 6 6 to 6 to 9 to 9 1 to tu 1 12 to 10 to 15 to 12 to 1 18 2000 to 1 11 1 to 21 1 to 16 Ill to 21 24 I to IS to 27 27 to 20 O Oto to 30 to 22 to 35 and exceeding 25 to 40 10 Tho Tue transportation and insurance taxes already made public Included a aness' aness anew anew new ness tax of or 10 per cent upon tho the amount paid to an any tole telegraph aph or telephone company compan for nn any special leased wire or I talking circuit but bul does not nol apply to collection and dissemination of or news newa through the thc public press or In the conduct conduct conduct con con- duct by a common carrier or telegraph or telephone company of or Its business as us such Prohibition Overlooked rJ There Theio Is h no reference r to th the Imminence imminence imminence nence of prohibition legislation In what whal the thc report said about the tho beverage e tax Homo Some administrative provisions are Imposed im imPosed imposed Im- Im posed on liquor including elimination of ever every exemption such as the present present pres pres- ent cut law provision that retail liquor dealers ma may hold flet fifty gallons of or distilled distilled distilled dis dis- tilled spirits and twenty five gallons s-allons of or wines vInes free tree from the floor loor tax The Tho tobacco rates the report said ald are arc fixed at tit approximately the highest st revenue producing rates that can safely t be levied without greatly reduced Consumption consumption consumption con con- of ot tobacco and consequent re reduction reduction reduction re- re In revenue So far as practicable the committee has placed the tho excl excise e taxes upon tho the manufacturer producer or r Importer In the tho second group roup of articles re regarded re- re as K a luxury when sold over a fixed price the committee bell believed vc that these taxes should be bc pad pa b by the consumer con con- sumer and collected 1 by 11 the thc retailer |
