| Show I Here Heres Here's f 5 How New Tax Hi Hikes k es Affect Individuals Firms jl Excise Levies Will Yield Daily Measure Cuts Exemptions to Minimum WASHINGTON Sept 17 UP The UP-The The new tax bill bili increases present levies on individuals co corporations and on a multi multitude ude of everyday articles from playing cards to refrigerators and automobiles to pinball machines I The income taxes apply to the earnings during calendar year 1941 The first Installment of taxes at the new high rates willbe will willbe willbe be due next March 15 Excise taxes yield almost 3 a day will go into effect October 1 with few exceptions Here are the salient features feature of the new tax bill With reduced exemptions and sharply higher rates the bill will increase federal revenue from personal income taxes by a year Exemptions are reduced from to for single I persons from 2000 2100 to 1500 for married couple couples and oth other r persons ual- ual I Hying a. a as head of families The additional exemption for each dependant remains The normal tax remains 4 per cent Surtaxes begin at 6 per cent on the first 2000 of taxable income instead of the present 4 per cent tax after After the first 2000 of taxable taxable taxable tax tax- able income the surtax rate jumps to 3 9 per cent and by 2000 brackets thereafter it Increases in increases increases In- In creases progressively ely to 13 17 21 25 29 32 35 38 and 41 per cent After of taxable income the rate goes up in big- big Continued on Page Two Column Five Heres Here's How New Taxes II Will Affect Nation Continued from Page Pac On One One ger jumps to 77 per cent on 1 Income In itt- come In to excess of Ta Taxpayers ayers whose Incomes do donot donot donot not exceed can alIo allow v the government to compute their tax for far them Charts will be posted showing what the average taxis tax taxIs taxis Is for tor each 25 bracket between and Corporation Income and Excess Profits Taxes Corporations whose net earnings earnings earn earn- ings total more than a year will continue to pay a 24 per cent normal tax Those with earnings up tp will pay payas payas payas as follows On the first 15 per cent on the next 17 per cent on the remainder 19 per cent Here too the present present present pres pres- ent 10 per cent special defense tax tar has been integrated and made permanent permanent-In In this case clUe with the normal tax Corporations will pay a new surtax 6 per per cent cent on Income up to 7 per cent centon on the rest resL Corporations will continue to pay excess profits taxes which do not apply to individuals The rates have been Increased by 10 per cent in each excess profits bracket Yield of all the corporation tax changes Estate and Gift Taxes The bill integrates the 10 per percent percent percent cent defense tax Into the estate and gift gilt structure and Increases the rates A exemption Js is al allowed allowed allowed al- al lowed on estates after which the tax begins at 3 per cent on the first of taxable estate and increases to a maximum of 70 per cent on that portion of estates over The new tax will apply only to es estates estates estates es- es tates created by the death of persons taking place after en enactment enactment enactment en- en of the bill Yield Excise and Miscellaneous Taxes Many existing taxes are In Increased increased in- in creased and new ones added They become effective October 1 except where otherwise in In- In Most are payable by manufacturers but the cost is passed on to the consumer Automobiles The Automobiles 3 y per percent cent excise tax is increased to 7 per cent Yield The new 5 55 annual use tax applies to all cars Also a use tax will be charged on boats Auto and boat use taxes effective effective effective tive February 1 1942 yield T Trucks Excise Trucks Excise doubled to 5 p per r cent truck and bus trailers formerly not taxed are taxed at 5 per cent J Radios etc Existing Existing law taxes radio and phonograph parts and musical instruments The new bill increases the rate from 5 per cent to 10 per cent Yield Refrigerators and air conditioners condi condi- Increased Increased from 5 to 10 per cent and applied to commercial commercial commercial com com- mercial as well as household types Yield Safe Sate Deposit Boxes Boxes Safe deposit boxes Increased boxes Increased from 11 to 20 per cent of rental charge Yield Distilled spirits spirits e eased a s sed e d from 3 53 to 4 54 a gallon brandy from to 4 54 Yield Wines and liqueurs Still wines alcoholic content not over 14 per cent increased from 6 cents to 8 cents per gallon alcoholic content 14 to 21 per percent percent cent from 18 to 30 cents alcoholic alcoholic alcoholic alco alco- holic content from 21 to 24 per percent percent percent cent from 50 to 65 cents Sparkling Sparkling Sparkling Spar- Spar kling wines increased from 3 to 7 cents per half pint Artificially Artificially Artificially Arti Arti- i carbonated wines Increased in increased increased in- in creased from 1 Ph 1 to 3 5 cents per half pint Liqueurs cordials increased from 1 l' l cents per I half halt pint to 3 36 cents Yield i Theater and other admissions One One cent for eaCh 10 cents of admission price or fraction thereof with exemption for children under 18 18 but only if It the admission is under 10 cents Present law taxes admissions of 21 cents or more Yield Cabaret Taxes Cabarets and roof root gardens- gardens Levy of 5 per cent of the bill replaces one of 20 per cent on that portion attributable to the admission charge Yield 2 Club dues Existing dues Existing law taxes dues which exceed 25 a year Bill reduces exemption to lq IQ Tax remains 11 per cent Yield Telephone service A service A new 6 per cent tax on every persons person's monthly phone rental bill Yield Long distance service service Five Five cents for e each cn 50 cents or fraction fraction frac frac- tion thereof on telephone toll calls where the charge is over 25 cents Telegraph radio and cable messages taxed 10 per cent Present 5 per cent tax on leased wires increased to 10 per percent percent percent cent and expanded to include service and also 5 per cent on burglar and fire alarm circuits Yield 24 Jewelry furs and toilet preparations preparations preparations prep prep- cards tires tubes matches sporting goods luggage luggage luggage lug lug- gage electric gas and oil appliances appliances appliances ances photographic apparatus electric signs business and store machines rubber art articles cles commercial commercial commercial com com- mercial washing machines optical optical cal call equipment except eye eyeglasses eyeglasses eyeglasses glasses electric light bulbs Yield Transportation Transportation NEw New levy of 5 per cent on passenger tickets by rail motor vehicle water or air with exemptions for fares not exceeding 35 cents and commutation commutation com com- mutation tickets for single trips of less than 30 miles Yield This tax becomes effective October 10 Coin operated devices etc Gambling machines 50 a year amusement machines 10 a year bowlIng alleys and billiard billiard bil blI- liard tables 10 each a year All these taxes are new Yield I |
