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Show TARIFF CHANGES IN THE NEW REVISION MEASURE ARE MANY Special Session of Congress Has Produced a Bill Which Prtakes for Reduction in a Number of Important Duties-Income Duties-Income Tax to Produce Revenue. Washington. The Democratic tariff tar-iff revision bill arrived at its last congressional con-gressional stage when it came back to the house from the final conference committee with the unanimous in-dorsement in-dorsement of the Democratic conferees. con-ferees. The measure, of course, has both its friends and enemies. According to the administration, it carries out four of the party promises. Tariff reform, re-form, reduction in the high cost of Jiving, campaign against the trusts. In that duties have been taken oft of many trust made article, and the In--come tax. The measure, consequently, has a larger Importance than that of a mere tariff reform bill, and its effect must be widespread, both on business and Industry, and also in connection with politics. Democratic leaders are confident con-fident that business will suffer no untoward un-toward effect; that consumers will be benefited. The bill imposes an average ad valorem rate of from 27 to 29 per cent. The average for the present Aldrich law is 40.12 per cent. The average for the Wilson-Gorman act was 39.45 per cent. Duties generally have been reduced n all of the articles that enter into ihe necessaries of life. Including the products of the farm as well as manufactured manu-factured products. Trust made products in many cases have been transferred to the free list or the duties at present imposed have been substantially reduced. The income tax feature of the bill is expected to net some $83,000,000. It will call for a tax on net incomes of unmarried persons of $3,000 and upwards up-wards and on net incomes of married persons living together, where the wife or husband is dependent, of $4,-00 $4,-00 and upwards. Experts' estimates indicate a surplus sur-plus of $16,000,000 over all expenditures expend-itures at the end of the present fiscal year. A rate of 40 per cent, is imposed -on stockings and half hose valued at -not more than 70 cents a dozen pairs, for stockings between 70 and $1.20 dozen pairs a duty of 40 per cent, "was agreed upon. The conferees eliminated the provision provi-sion inserted by the senate denying entry into the American market of goods manufactured by children under 14 years of age. The final agreement provided that any person employed to collect the Income In-come tax may be utilized by the secretary sec-retary of the treasury in the general service of the internal revenue bureau. bu-reau. Agricultural Products and Provisions. Cattle, sheep and other domestic animals an-imals suitable for use as food, wheat and wheat products and eggs, have been transferred to the free list. Reductions Re-ductions have been made on oats, butter, but-ter, beets, frozen eggs, peas, greenhouse green-house stock, zante currants, chocolate choco-late and cocoa sweetened and extracts of meats from the rates provided by the house. The rates have been in-H in-H -creased over those provided by tha house on broken rice, fish packed in oil and ground spices. A rate of 20 iper cent, ad valorem is placed on .ground spices in addition to the spe--cific rate provided by the house on xinground. The senate receded from he reduced rate placed on flaxseed and its amendment placing a duty on bananas. The house classification on lemons and other citrus fruits Is accepted. ac-cepted. Papers and Books. The house rates have been reduced on common paper, box, boards, papers partly covered with metal leaf or .gelatine and plain basic papers for -albumenizing for photographic printing. print-ing. The rates provided by the house for surface-coated papers suitable for covering boxes has been Increased Irom 35 to 40 per cent. The senate amendments placing specific rates graduated according to thickness and size have been agreed to with several reductions in the rates provided. The rates agreed to are approximately i equivalent to the ad valorem rates provided in the house bill. A specific rate has been placed on lithographic views of scenes and buildings located lo-cated in the United States instead of the advalorem rate provided by the house. This amendment results in an increase in the rate of duty. Cotton Manufactures. The senate classification of cotton loth, according to the average number num-ber of the yarns contained therein, was accepted, instead of the house provision for the highest number. This slightly decreases the rate of some fancy weaves and novelty cloth, but on the greater bulk of cotton cloth the rate is not affected. The rates on bleached and dyed colored yarns are increased and on cotWi yarns and cloth made of yarn, froj numbers 79 to 93. The rates on handkerchiefs or mufflers, not hemmed, have been deduced de-duced from 30 per cent, as provided by the house, to 25 per cent. POINTS ABOUT INCOME TAX. It has been figured that a revenue of $82,298,000 will be afforded by the imposition of the income tax, of which the following is the schedule: $3,000 to $20,000 1 per cent $20,000 to $50,000 2 per cent $50,000 to $75,000 3 per cent $75,000 to $100,000 4 per cent $100,000 to $250,000 5 per cer.2 $250,000 to $500,000 6 per cent More than $500,000 7 per cent So far as the taxable American Is concerned, the income tax law is now practically in force against him. While the tariff law in which the law is embodied em-bodied will not be signed until next week, the first returns do not have to be made to the Internal revenue collectors col-lectors before March 1, 1914. Bit when the returns are made they wll cover cov-er the income of citizens from March 1, 1913, to December 31, and the first payment of tax will be for money received re-ceived during this period. Every single person (citizen or foreign for-eign resident) whose annual income exceeds $3,000, and every married person per-son with an income above $4,000, Is expected to report bis or her receipts re-ceipts in detail to Che government agents March 1 of each year. President Wilson, the federal judges of the Supreme court now holding office of-fice and employes "of a state or any political subdivision thereof," are the only persons specifically exempted from the tax by the new law. The president and judges now in office were made exempt to ''Bcape any questions ques-tions of the constitutionality of the law, and their successors in office will be compelled to pay the tax. First Burden Is on Citizen. The general public is expected to give close study to the new law in the next few months, as the first burden bur-den of the tax payment rests with the individual citizen, and his failure to report his income Is punishable by a fine. It is admitted that when first returns re-turns are made many taxable persons probably rff escape payments, but with each year the government's lists of persons with taxable incomes will be made more nearly complete. Methods of Collecting Tax. Two primary methods of collecting the tax are contained in the law. One is that the individual return made by the citizen; the other the returns by corporations and other employers who pay their employes' taxes "at the source." Under the law as it will be signed by President Wilson next week, every large company employing labor will be compelled to report any regular regu-lar salaries it pays in excess of the $3,000 figures, and will pay the taxes for its employes and deduct the tax from their pay envelopes. This "payment at the source" will apply to salaries, rents, interests, royalties, roy-alties, partnership profits and some other sources of income, and persons receiving such incomes must be prepared pre-pared to show that the money has paid its tax at its source. In figuring up hiB net income for the taxpayer, the American business man, after deducting $3,000 for himself, him-self, or $4,000, If married, will have the right to claim the following additional addi-tional exemptions: Necessary expense of carrying on business, not including personal, living or family expenses. Interest paid out of indebtedness. National, state, county, school or municipal taxes paid within the year. Trade losses, or storm or fire losses, not covered by insurance. Worthless debts charged off during the year. A reasonable allowance for the depreciation de-preciation of property. Dividends from companies whose incomes in-comes have already been taxed. Interest from state, municipal or government bonds. Must be Entire "Net Income." .It Is a clear provision of the law, however, that the taxable person must make a return to the internal revenue collector for his entire "net income," and exemptions claimed under the law must be submitted to the federal officers offi-cers for them to determine upon their reasonableness or legality. Ready to Answer Questions. The treasury department is preparing prepar-ing for a flood of questions about the new income tax, realizing that this feature of the tariff bill about to become be-come law strikes more intimately at the tax paying citizen than do the indirect taxes collected through the customs duties. For the first year the citizen will make return to the local internal revenue reve-nue collector before March 1, 1914, as to his enrnings from March 1, 1913, to the end of this year. The collector will notify him June 1 how much he owes and the tax must be paid by June 30. After next year the tax will apply on the full calendar year. |