Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-07-01
BILL INCREASES
LEVY ON WEALTH
Revenue Measure Reported to House
Raises Income Tax and Creates New
sion

DutieS - FfoVidee arm SommiS'
sion.
Washington, July 1.-The admins
tration's new revenue measure will be
reported to the house this afternoon
by Majority Leader kitchin.
The present income tax is practical
ly doubled: confiscatory tax is
placed on large inheritances, and a
heavy tax is levied on munitions Of
war of all descriptions. The existing
stamp taxes in the revenue act; which
was passed in 1914 and extended to
features Of the war revenue act are
maintained in force.
From the new income tax features
the administration expects to realize
s100,000,000; from the inheritance tax.
500, 0O0,0 900, and from the munitions
tax, s60,o00,0O0. 1t is estimated at
least s40,0OO,OoO annually will be real
ICED from the features Of the emer-
gency revenue act which are made
permanent law.
Provides Tariff Commission.
In addition to the taxation features
Of the measure it contains provision
for the creation Of a nonpartisan tariff
commission; redrafts the dyestuffs
schedule Of the Underwood tariff law
so as to grant absolute protection to
the dyestuffs industry Of the country
for a period Of Ave years and partial
protection for an additional Ave years,
and provides a stiff penalty on
foreign concerns which dump their
products here at a lower cost than
they sell at home.
The bill will be damned thru the
house in three days. When the house
adjourns tomorrow night it will not
meet again until Wednesday. That
morning rule will be adopted making
the revenue bill privileged business and
debate will be limited to three days.
Inheritance Tax Changed.
The inheritance tax section provides
that all estates over $4,000 are to be
taxed at the time they go into the
hands Of the administrators executors
or trustees. The schedule Of taxation
on inheritances above $50, 900 follows:
Rate.
Amount OF estate taxed per cent.
$4,000 l
$780, 900 to s150,000 .............. 2
$4,000 to $3.50, 900 ............... 3
$3.50, 900 to s450,Oo0 ................ 4
All over s450,000 ................. 5
The munitions tax section Of the bill
is a complicated one. 1t provides that
10 per cent OF the net profits of per-
sons or corporations derived from the
manufacture of munitions OF war shall
ha 70
is in addition to the regular income
tax.
On gunpowder, with 10 per cent Of
the income exempt, tax Of per cent
is levied on all net profits up to $1,000
900 and 8 per cent on all over $1,000
900. On cartridges. projectiles, shells,
and firearms Of all descriptions from
small arms to AZ centimeter guns, a
tax of per cent is levied on net profits
up to s25o,OOO; 3 per cent on profits
between 3250000 and 100000; per
cent IN profits from 100000 to s1,000,-
600 and per cent on profits in ex-
cess of 100000.
Levy on Mines and Smelling.
Because of the tremendous profits
accruing to persons and corporations
engaged in ore mining and smelling as
q result Of the war a tax Of per cent
is levied on the profits Of these firms
or individuals in excess of $4,000 and
under $1,000 900, and ~ per cent on
all profits in excess Of 100000.
The income tax schedule, as revised,
was agreed to after a long fight among
the democrats on the ways and means
committee. The present exemptions OF
SO. 900 for single men and $4,000 for
married men are retained. The present
surtax exemption Of $4,000 is also re-
tanned.
The tax on normal incomes, now l
per cent, is increased to 2 per cent.
The surtax schedule follows:
Rate
Incomes- per cent
.,n ooo 4. ezn nno 1