Saturday news. (Watertown, S.D.) 19??-19??, 1916-07-06
New Revenue Bill
And What Ii is Ex-
pected TO Accomplish
The Tax Bill Hits Incomes, Inherit
ances, Munition Making
and Mine Profits.

TONS new revenue measure was re- 4
ported to the house today by Majority
Leader Claude Kitchin. 1t includes
1.-The following provisions:
The present income tax is practical
ly doubled.
A tax is placed on large inherit |
ances.
A heavy tax is levied or munitions
of war of all descriptions.
The existing stamp taxes in the
war revenue act passed in 1914 and
extended to January /, next, are re-
pealed, but other features of the war
revenue act are maintained in force.
25o,Ooo,o0o Revenue Expected.
From the new income tax feature,
the administration expects to realize |
100,000,000, from the inheritance tax
$50,000,00 and from the munitions tax
$60000,000. 1t is estimated at least
$40,000,000 annually will be realized
from the features of the emergency
revenue act which are made perma- 1
nent law.
In addition to the taxation features
of the measure it contains these pro-
visions:
Creates a nonpartizan tariff com.
mission.
Redrafts the dyestuffs schedule of
the Underwood tariff law so as to
grant absolute protection to the dye
stuffs industry of the country for a
period of five years and partial pro-
lection for an additional five years.
Provides a stiff penalty on foreign
concerns which dump their products
here at a lower rate than they sell
them at home.
Passage in Three Days Predicted.
The bill will be jammed through
the house in three days. When the
house adjourns tonight it will not
meet again until Wednesday, That
morning a rule will be adopted max
ing the revenue measure privileged
business and debate will be limited
to three days.
The Inheritance tax section pro-
vides that all estates over $4,000 are
to be taxed at the time they go into
the hands of the administrators, ex-
ecutors, or trustees. @
The schedule of taxation of inherit
ances above $4,000 follows:
Amount of state taxed Rate
$4,000 ...-....................1 per cent
$4,000 to $150,000 ....,-.........-2 per cent?
$150,000 to $250,000 ................3 per cent?
YNoO,OVO W YtOO,OVO --..--.f pCI SGHII
ALI over $3.50, 900 ...................-5 per cent
Munitions Tax Added.
The munitions tax section of the
bill is complicated one. 1t provides
that 10 per cent of the net profits Of
persons and corporations derived from
the manufacture of munitions of war
shall be exempt from taxation This
tax is an addition to the regular in
come tax. a
On gun powder, with 10 per cent of
the income exempt, tax Of per cent
is levied on all net profits up OF
s$1,O00,000 and 5 per cent on all over
$1,00O,0O0.
On cartridges, projectiles shells
and fire arms of all descriptions from
small arms to ~ centimeter guns, a
tax Of 2 per cent is levied on net
profits up to $250,O00; 3 per cent on
profits between $250,000 and $500, 900;
: 4 per cent on profits from $500, 900 to
$1,000,00O and per cent on profits
in excess of 81 ,o00, 900.
Big Mining Profits Taxed.
Because of the tremendous profits
accrufng to persons and corporations
engaged in ore mining and smelling
as result of the war, tax of per
cent is levied on the profits of these
persons or individuals in excess of
$4,000 and under $40 ,00o, 600 and V
per cent on all profits in excess OF
$1O,00O,000.
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 $4,000
for single men and $4,000 for married
men are retained
The present surtax exemption of
$4,000 is also retained
The tax on normal incomes, now / /
per cent, is increased to 2 per cent.
Hits Incomes OF Nonresidents.
The measure also carries provisionsa
for the taxation Of nonresident aliens
on incomes derived in the United
States. These provisions were placed
in the bill largely to hit dowers Of
AUerican girls who marry foreign
titles.
The present collection at the source
feature is retained in the new bill, /
although a determined effort was
made BY many banking institutions to-
have an infornat tion at the source,
clause substituted.