Show II I II I I II I I I X BILLION DOLLAR TAP PURSES I F EVERY CITIZEN Much Each MustI Must ric rican n People Learn How ay Toward Meeting Huge Indebtedness Caused by Parti Participation pation in War I By Assoc Associated Press WASHINGTON Feb 6 No G.-No No extension of the time and March 15 will f filing income profits returns beyond made by the treasury Secretary Glass said today HB By Associated Press ASHINGTON Feb 6 With the submission fo congress f fire conferees' conferees agreement on the long delayed war revenue IRe merican people were presented with whit their prospective tax ax budget for 1919 and ensuing year year ear something over 00 this year and the year after to he revision of future rates by the next congress I 1 conference 10 cb fer report presented to the the house by Majority IK is regarded assured of adoption b by both h house use te la and of approval by the president For r lIghtly US-lIghtly slightly increased increased war var vari i its rates for tor 1919 1019 and andos ot ons os s' s income tax rates for lu ll all the rates as re- re Ij bill passed In hy the senate oved ov d Rates of ot the senate p anon cigars t 1 amusement admissions ion sem s' s s luxuries and IP i i pedal taxes all r l' h by the conferees e ouse louse rates on est estates tes- tes and andere andere andere ere reinstated CATION RATE RAISED pal rate increases agreed rn inference rence were wen to raise the theo o rate late for 1920 from fromn IB n to 10 0 Per cent an- an and anan an fL from n 60 GO to 6 65 p per r cent in the tho bracket or sliding scale on onI onon on excess profits lor for this er r cent war profits tax ar was adopted and upon e I v y house conferees ex- ex exo o 0 but made applicable r ly upon such profits from fromen en war contracts The ex- ex qt bracket rates of 20 and cen cent for 1920 also were ap- ap all the he relief is I signed designed to pre o prevent nt m hard bard position of the taxes were 1 fe 3 income tax sec eec retains all senate rates and and surtaxes including that on corporation income ear r. r in excess of credits 1 fallowed I slowed but fixes the sub- sub rite rate of of 10 per centy cent y INCOMES 2 par r cent normal r rte te on in- in earned last tast year rear and lerf erent ent rate payable in 1920 lined with individual 00 for single and 2000 ri persons d persons and an additional 4 ot of rs oo for each dependent A Also so 50 adopted are provisions Ivi als shall pay only 6 per sj sJ ar and 4 per cent there there- lQ e first subject to t X The senate surtaxes s ranging from 1 per perI per I incomes between and r 0 85 65 per cent on more th also were approved r tABOR LABOR HIT is general legis legia n riders the confer conferees conferees' es 11 tollow following ng provisions I prohibitory tory t tax x on pro labor T C ling prewar j. postage ratEs ratE's at S on n n July 1 next I In a a pay bonus of 60 GO fr Song ons in the military establish establish- rs and misted men alike ding the Reed bong dry pr proto pro pro- w to the District of ot Co- Co R RAX TAX RAISED t S g from 25 US to 1 1000 th tax taxed e ed dealing in hi Intoxicants intoxicants prohibition terr t territory rr torY tat taxation tion of ot salaries o Of federal including the pres press president I ent and andy Y ut not of ot state of b of ot all aU gov t Ja by contractors on del der nd ind of ot e effiat pt revenue commissio r 1 of ot 20 per can cen to do ell tors fora r I h. h an advisory ax board b oar d mc bers in the t and ande Bury sury feting 1 Ing sale and of nar p e th se ae of drug STR re we Provisions stricken ed r class dasa real lea eal of the publishers publishers' ate te zones and proposed propose d r J of r decreased charged called so-called Thomas amendment Continued on page 2 MANY ARTICLES OF I II I I EVERYDAY USE HiT HT J JIN IN DI REVENUE ACT I Continued from page 1 1 which proposed per cent taxes on political campaign contribution in ex excess excess excess ex- ex cess of dt House amendments for a federal li license license li- li cense tax on use of ot motor vehicles The so-called so business license of 10 on business and professional men earning 2500 or more Senate taxes on inheritances for which the conferees substituted house levies on on estates The rhe house tax of ot 2 cents a gallon on gasoline and House amendments to tax state and municipal bonds and other securities MANY CHANGES MADE The conferees mada made many Important changes affecting income and war excess excess ex cess profits taxation rewriting scores of amendments and virtually redraftIng redrafting redrafting redraft redraft- ing a Ii substantial part of the measure In agreeing upon war excess profits taxes confined to corporations the conferees struck out the house alternative alternative alter alter- native plan to levy on war or e excess profits according r n to the e highest h t yield fe I adopting the senate composite plan The rhe prewar period standard of calendar calendar calendar calen calen- dar years vears of 1911 1912 and 1913 was retained as was the system of credits Corporations with income less than are exempted AFTER EXCESS PROFITS Other limitations are for a maximum excess SS profits tax of ot 30 per cent this year jear ear and 20 per cent in 1920 on in incomes incomes incomes in- in comes under plus 80 per cent In 1919 and 40 per cent thereafter on Inc incomes mes over Estate taxes are imposed at rates I lower than existing law With a general general gen gen- 1 eral exemption of the new rates I range from 1 to 25 per cent the cent the minimum minimum min mm- on net taxable estates exceeding by the exemption and the maximum of 25 per cent on estates of and over The existing graduated rates range from 2 per cent centon centon centon on estates under to 25 per cent centon centon on those exceeding I I SLEEPING CAR RATES I The provision for taxes on transportation tation and other public facilities effective effective tive April 1 I reduces from 10 to 8 per percent percent percent cent the levy on seats berths 1 and stateroom accommodation In sleeping or parlor cars or on vessels fixes the rate on telegraph telephone cable and I radio messages at 5 cents on those thos costing 15 to 50 cents and 10 cents on I those above 50 BO cents Instead of the the present cent 5 flat charge on messages I costing 15 cents and more and imposes a anew n w tax on on private or leased tele tele- le- le phone or telegraph wires except press wires of 10 per cent of rentals In Infixing Infixing Infixing fixing th thoi passenger transportation taxes the conferees commutation t tation trips of less than thirty miles or fare paid under 42 cents TAX ON INSURANCE Insurance taxes effective April 1 at virtually existing rates based ased on policies policies pol pol- ides written were adopted Beverage taxes contingent on prohibition prohibition prohibition pro pro- as adopted are LIQUOR TAX HIGH Distilled spirits for purposes per proof gallon the present rate distilled spirits manufactured manufactured manufactured imported or withdrawn for beverage beverage beverage bev bev- purposes per gallon double existing law but with a relief provision provision provision provi provi- sion suspending certain charges on spirits held in bond b h prohibition I beer and other fermented beverages 6 G per barrel double present law wines double existing rates based on alcoholic alcoholic alcoholic alco alco- holic content also with a prohibition relief provision permitting distillation distillation tion of wines for industrial purposes cereal beverages or near beer 15 I I per cent on on sales a new tax grape Juice root ber bel pop artificial artificial artificial cial and carbonated waters and beverages and mineral waters 2 cents per gallon CIGARS AND ICE CREAM A A new tax effective May 1 next Is 1 cent on each 10 cents or fraction of retailers' retailers sales of ice cream soda water sundaes and similar confections or orI I drinks to be paid by consumer Cigar rates fixed by the conferee conferee- range from per thousand to 15 I per thousand a 50 60 per cent increase on cigars sold in excess of 20 cents each Cigarettes are taxed 3 per perth th thousand usand Instead of on thoe thos weighing not more than three e pounds per thousand tho and per pert thousand more instead d of on cigarettes weighing Tobacco and snuff are taxed 18 cents a pound an increase of 5 6 cents Stringent provisions were adopted by the conferees to regulate dealers in leaf tobacco AMUSEMENTS AMUSEMENTS TAXED Amusement admission taxes In the bill effective April 1 I were Increased only In a It few instances the general rate of 1 cent on each 10 iu cents or fraction fraction fraction frac frac- tion paid being retained Club dues are taxed 10 per cent upon members of ot organizations charging more than 10 annually Excise or manufacturers manufacturers' rs' rs sales taxes Including luxuries covering a wide range of articles include Automobiles trucks and wagons exempting exempting ex ex- empting tractors and their tires and ac ac- ac s 3 per cent automobiles and J motorcycles and accessories s 5 Ii per percent percent percent cent pianos organs excepting pipe organs players talking machines music music music mu mu- sic boxes and records 5 per cent SPORTS GOODS Sporting or athletic goods etc 10 I per cent chewing gum 3 1 per cent cameras 10 p per r cent photographic I films and plates 5 per cent candy 5 per cent firearms and portable electric electric electric elec elec- fans tans 5 per cent thermos bottles 5 per cent fur articles 10 per cent yachts and motor boats for pleasure purposes and canoes costing more than 15 10 per percent percent percent cent toilet soaps and soap powders 3 pe po 0 sculpture painting statuary and other art works 10 per cent with tax exemption for those sold to educational educational educational edu edu- Institutions or public art museums mu mu- t TAXED taxes of 10 per cent ef effective effective ef- ef May 1 I. I next are retained al although although al- al though subject to modification later by separate resolution They are to be charged consumers of high priced ar articles articles ar- ar tides of personal Swear are are returnable to the treasury by br retailers The 10 per cent tax is levied on the excess paid above c st standards prescribed for various articles including the following following following fol fol- fol- fol lowing C Carpets and rugs except of wool 5 per square yard rard picture frames 10 each trunks 50 valises traveling bags lags suitcases hat boxes and fitted toilet cases 15 purses pocketbooks and handbags portable lighting fixtures Including lamps and shades 25 umbrellas parasols and sunshades 4 fans 1 house or smoking coats or jackets and bath or lounging robes 7 50 mens men's separate waistcoats 5 women's and misses' misses hats bonnets and hoods 15 mens men's and boys' boys hats 5 mens men's and boys' boys caps 2 boots shoes pumps and slippers 10 per pair pall with special ap ap- ap- ap for crippled persons exem ed mens men's and boys' boys neckties and neckwear neck neck- wear 2 mens men's and boys' boys silk stockIngs stockings stockings stock stock- ings or hose 1 er pair pall women's and ml misses misses' ses' ses silk stockings or hose 2 per pair mens men's shirts 3 each pajamas nightgowns and underwear 5 each kimonos petticoats and waists 15 each MOVING PICTURE LESSEES Moving Mo picture lessees or licensees are taxed 5 per cent of or their total monthly rents in m lieu of the present footage tax on films Perfumes toilet waters tooth and mouth washes pills piUs powders powders powders pow pow- ders patent medicines and similar articles are subject to a retail sales tax effective May 1 I and payable by purchasers of 1 i cent on each 25 cents paid in lieu of present stamp taxes Special taxes provide for retention of ot the 1 capital stock tax of corporations and make levies effective January 1 upon brokers theatres concert halls etc bowling alleys billiard and pool tables shooting galleries taxicabs and sightseeing cars Special taxes on cigar and cigarette also were retained Yachts pleasure boats power and m tor boat taxes also were approved with taxes based on net tonnage at double present rates Stamp taxes as now paid by law were left in the bill including 1 cent for each 25 cents or fraction on parcels sent by parcel post AFFILIATED CORPORATIONS The conferees made many amendments amendments amendments amend amend- ments H iff M im Important administrative and basic Interpretative sections of the bill Among these was retention of a modified modified modi modi- fied fled provision for consolidated tax re returns returns returns re- re turns of affiliated corporations except those with war contracts contract Another defining corporate dividends affects stock dividends and provides briefly that stock dividends shall be considered considered considered consid consid- ered as Income to the amount of earnings or profits distributed Provision for allowance of ot net losses recently discovered losses submission of inventories s and for exemptions from Income t es for those in the military establishment were other Important t I amendments retained In the bill The Tho income tax salary exemption provided for persons In the military service retains the house maximum limit of and provides that such exemption shall be limited to those In Inactive inactive active service In the tho schedule the conferees conferees conferees con con- adopted the senate amendment which Senator McCumber of North DaI Dakota Dakota Da Da- Da- Da I kota lota advocated exempting mens men's and boys' boys clothing or overcoats and women's women's women's wom wom- ens en's and misses' misses suits cloaks coats and dresses from the 10 per cent tax Representative Kitchin presented the conference report with the announcement announcement announcement announce announce- ment it would be called up in the house bese e for consideration on Saturday |