Show 1 N Ni i IN RA IN R i ii i j I Bill Introduced by Sen I Smoot Would Add Big BigI I II 1 I I Sum to Country's Income Income In- In Income come and Repeal Law Lav LawI I I By Lewis Wood WoodI I International News Service Staff Correspondent I WASHINGTON I Jan 5 V Y Senator Reed Smi ot t of I Utah today i introduced tro V a substitute sub sub sub-I I for the time present r revenue venue 1 bill which has Imas cause caused so so much I criticism The Time details of the new bill hill I II I are practically as announced b by the he senator several days ago I lIe j to repeal et 1 the p tn In o omo o tax or of 1916 Jn I I I tax excess profits tax war Income ze I tax war war e excess cess profits tax tl time the Income Int In- In I t come tax amendment and also als the I I zone s system stem for tor se second ond class class mail class mail I i matter matten S 'S In In lieu of the various war ware war e excess cess i profits proms taxes Senator Senator Smoot wishes vi to establish war profit taxes He lie malC the makes s the prewar period five years prior to and including 1913 instead of the three years years years' now v used as a basis He Ire makes no change chango in the normal 2 per pet cent tax upon net Incomes Incomes of individuals indi but consolidates consolidates' th the surtaxes surtaxes sur sur- taxes In the acts of or 1916 and 1917 sur-I sur and also does away ith with the two different ditc amounts mounts of of eX exemptions ex 1 The sum of 1000 exemption is allowed al allowed allowed al- al I lowed to to single persons an arid anil 1 2000 to th those se with dependents One Otto h hundred II dollars Is 19 allowed fo for each child The hill bill allows exemption for tor amounts paid to partners partners 0 as as' as s salaries I T Instead of or the presen t. t I taxes amounting to to 6 ti per cent cent on on corporations corpora corpora- corporations I lions Senator Smoots Smoot's bill imposes 8 S Sper I per Jer cent except when corporations I IlIa have ve less than thun 2090 00 income The rhe na senator tor claims this tax will raise I more than the present taxes taxes instead of I He obtains his ils basis for war I I profits prots by deducting prewar profits i I from the Income for tor the taxable year the prewar profits to be the average average I of ot the selected years plus S 8 per cent of af new capital and minus 8 S per nor cent of rr withdrawn capital I The Time estimated revenue says say SenI Senator Sen Son I I ator star Smoot to be e. e derived from this tax will will amount to based on a a. war wal profit of I 1917 for or year time The amount to be he raised under each racket bracket is 11 First 10 per cent Second 2 per cent 56 Third 15 per cent Fourth 20 per cent I Fifth 25 per cent I Sixth 30 ner ncr cent Seventh 40 per cent cant I Eighth 50 per cent Ninth 60 per cent I Tenth 70 per cent 52 Eleventh 80 per cent I Total Is an increase of 01 revenue revenue over the he present excess profits tax of or I says sas Senator Smoot No person he has bas yet found understands understands under I stands just what the present bill hili i means sa says s 's Senator Smoot in a a. iI j i I statement in which he ad adds s I I I have yet yefto to find tind Jn nn- nn ny two vo persons per per- I sons cons who interpret it alike aUke I It is unworkable and tho the taxes i iare are tre unscientific and discriminatory he me sa says s My amendment provides I Ia a t taxing system that any ordinary h business man pr pI individual can understand under under- stand land and have no trouble in making I out ut a It tax ret return rn Every individual In In mm business I Is treated alike Evev Every EelY j corporation atlon is taxed on the same sameI I I basis asis Invested capital watered I tocks stocks and bonded indebtedness doI doLot do donot I not Lot enter into the i. Businesses Busi Busl- nesses eases s subnormal and businesses and businesses normal nor Tier mal mal during the pr prewar war period are treated on the same basis if it his nJ al The s sn senator n tor also says amendment nt becomes become law Jaw th there I will willbe be 0 no nonee nee Sr 2 f ory rY board I to toS Iy It l ons S II irn t I e Jr WJ MJ it t t Is f P Pi i i 1 t f t l J 1 i M l |