The Washington herald., 1916-07-02

on incomes in excess OF $4,000 and not
in excess OF $4,000; 3 per cent on incomes
in excess OF $4,000 and not in excess OF
100000; per cent on incomes in excess
of $4,000 and not in excess OF $3.50. 900;
5 per cent on incomes in excess OF $3.50 Goa
and not in excess OF $500, OOO and per
cent on incomes in excess OF 5000
Surtaxes Are Provided,
The proposed law provides for sur
taxes or rates beyond the proposed new
normal rate of two per cent as follows:
One per cent on incomes that exceed
$4,000 and do not exceed $4,000; two per
cent on incomes in excess Of $4,000 and
not in excess of $4,000: three per cent
on incomes OF $50, 600 and not in excess of
$4,000; four per cent on incomes in ex-
cess of <O,OO ad not in excess OF 800 900,
five per cent on incomes in excess Of 500 =
600 and not in excess OF $4,000; six per
cent on incomes in excess Of $l5OOO0 and
not IN excess of $200,OO seven per cent
on incomes In excess Of $2o0, 600 and not
IN excess Of S250.OCO; eight per cent on In
Incomes in excess of s25O,0OO and not in
excess Of $500 900: nine per cent on in
comes in excess of 10000 and not in ex-
cess OF $4,000; ten per cent on incomes
in excess of $4,000
Thus wealthy men with incomes in ex-
cess of sjO0,O0O will now have to pay ten
instead Of six per cent
The bill provides for a graduated ts \
or inheritances. All taxes will be as
sessed upon the next estate" to be
determined by deduCting all funeral ex-
penses. and an exemption from levy is
allowed up to the gross amount OF SO :
700. The rates are fixed as follows:
CoIlectibIe in Year.
One per cent on the amount Of net
estate less than $1,000: two per cent of
the amount by which the net estate
exceeds $4,000 and does not exceed $50, =
600; three per cent of the amount between
$4,000 and $4,000; four per cent of the
amount between $25O,OOO and $3.50 900; five
per cent of the amount by which the net
estate exceeds $4,000.
The tax will be collectible one wear
after the death of a decedent, and a dis
count at the rate of five per cent per
annum will be allowed for the time be-
tween the date Of payment and the ex-
plration OF the year, II payment is made
before the year expires. If payment is
not made within sixty days after the ex-
piration of the year period. interests will
be charged at the rate of ten per cent
a year
The feature of the sections of the
Kitchin bill levying taxes on munitions
of war is the heavy rates imposed on
smelling processes. Tax will not be col
lected in cases where the net profit on
gross receipts amounts to less than ten
per cent Where payment of tax would
reduce profit below ten per cent a levy
will be made on munitions only to the
extent of the net profit in excess Of ten
per cent. The bill is very specific as to
what constitutes necessary overhead ex-
penses in the conduct of a munition
plant The munitions tax may be sum-
married as follows:
Gunpowder Is Taxed.
Manufacturers Of gunpowder and other
explosives, except blasting powder and
dynamite. Five per cent of the gross
receipts not in excess of 100000: 5 per
cent of the amount by which such re-
ceipts exceed s1,OO0,0O0.
Manufacturers of cartridges, caps, pro-
tectiles, shells, torpedoes. shrapnel fuses,
firearms. or any of their parts Two per
cent of the gross receipts not in excess
of S25O,O0O; 8 per cent of the gross re-
ceipts exceeding $780, 900 and not exceed
ing $50o,OoO; per cent Of the amount of
gros receipts between $50OO00 and 1,0O0,- :
900; 5 per cent of the amount by which
gross receipts exceed 100000.
Smeters, refiners and alloyers of cop
per. One per cent on gross receipts be-
tween $4,000 and 100000; per cent on
receipts between 100000 and $40, ,000 900;
3 per cent on the amount by which re-
ceipts exceed s1O,o0O,0O0
The present tax of $50 a barrel on
beer and other malt beverages Is re-
tained. There are changes in the wine
classifications as well as in the rates on
wine products.
Under existing law there is a graduated
tax on wine running from one-quarter of
a cent on bottles of one-fourth Of a pint
to cents a gallon on the large contain
ers. The proposed law provides that the
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