The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1916-08-17
STAMP TAX To BE
DONE AWAY WITH
Tax on Corporation Stock Is
sues and on Undivided Sur
plus of Banks to Be
Imposed.

Washington, Aug. ia corporation
stock license tax to raise approximate
ly $20000000 elimination of most OF
the Objectionable stamp taxes which
once had been accepted and approved
with an amendment of the proposed
net profit tax munitions manufactures
We're determined upon by the demo-
cratic Senate caucus last night after a
five hours debate on the revenue bill.
Southern and western senators made
a bitter assault upon the finance COM
nlittee amendment which proposed
10 per cent tax on the new profits of
manufacturers Of materials used as
component parts of munitions of war.
1t was insisted that 1t would result in
a heavy tax on cotton and copper en-
tering into the manufacture Of NUM-
tons.
AS approved the section relating to
munitions provides that a net profit
tax Of 10 per cent be levied upon manu-
facturers of all munitions Of war, and
that per cent tax be levied on manu-
features of materials which enter into
such munitions. The estimated loss of
revenue due to the 5 per cent reduc-
ton would be about S5,000,000.
Abolish Stamp Tax.
To make up for this decrease and
also to make possible elimination of
proposed stamp taxes, against which a
fierce storm was gathering not only in
the caucus but in the House, Senator
Simmons suggested license tax of SO
cents on each. $4,000 of capital stock
undivided profits and surplus of all
corporations 100000 Of the stock Of
each corporation to be exempted. The
proposal was seized upon by all the
senators present at once and incom-
passed into an amendment which was
unanimously approved. The tax would
apply to all corporations, including
ho q wing CaDital and SlrDluS in
excess of 100000.
The proposed normal tax on incomes
Is left at 2 per cent, where the House
had fixed it, the exemption to be 81
eco for persons with families and 49,
coo for single persons as in the pres
cnt law. The rate Of taxation under
existing law is / per cent.
New Income Schedule.
In addition to the normal tax, adj
ditional taxes on large incomes will be
levied as follows:
One per cent up to the amount by
which the total net income exceeds
$4,000 and does not exceed $4,000;
z per cent on $4,000 to 100000; per
cent on 100000 to $4,000; per cent on
$4,000 to 100000; 5 per cent on $780,
600 to s150,000; per cent on $15O,000
to 100000; Z per cent on 100000 to
sS0o,ooo; 9 per cent on 100000 to
100000. On net incomes exceeding
100000 but not exceeding $1,0OO,-
GRO a tax of 10 per cent; exceeding
S1,G00.0OG but not exceeding s1.5OO,OO,
II per cent; exceeding $1.50o,0OO but
not exceeding S2.000,000, 10 per cent;
exceeding s2,oo0,000 13 per cent.
Inheritance Schedule
JTrun the transfer of inheritances
the following taxes will be levied: One
per cent of the amount of estates val
ued at not to exceed $4,000; 2 per cent
on estates exceeding $4,000 and not
exceeding. s15o.000; per cent on $780,
Geo TO $3.50 600; 4 per cent on $3.50, 900 to
saEoN00; 5 per cent on s450000 to ST.
0Onao0 6 per cent on s1,000,0OO to So
900. 900: 7 per cent on $2,0000oO to So
0Oc. n0O 8 per cent on s3,00O,00O to s4,-
ono, 600: 8 per cent on S4,000.000 to $5,-
600 and 10 per cent on estates exceed
ing 100000 in value The only in
crease in tka proposed income taxes
over the House rates is from 10 to 13
per cent on incomes in excess Of So
600 900. The rates from to 10 per
cent on estates also are additions to
the rates proposed in the Eouse bills.