Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-09-08
New Tariff Board Is
Hamstrung by Democrats;
Stand on Free Trade Policies

Washington, D. c., Sept. S.-Show-
ing its complete contempt f'r the new
tariff commission which it iNz1 3atins,
the Democratic party last mis-. elimi-
mated the permanent appropriation for
the existence of the commission, re-
fused to raise the salary of the COM
missioners to the original figure of
$4,000 a year ,and went to the coun-
try on its free trade policies.
The Senate and House conference
committee on the revenue bill agreed
to throw out the 100000 continuing
appropriation for the commission, de-
signed to make 1t permanent.
Increases Income Taxes
The revenue bill as passed increases
the income taxes, imposes inheritance
taxes, provides a protective duty on
dyestuffs, taxes profits on munitions,
creates a bipartisan tariff commis-
sion, changes the wine schedule of the
Underwood tariff law, provides meas
ures to prevent the dumping" of
European products in America after
the war at prices with which Ameri-
cans cannot compete, changes the
duties on print paper, continues
number of the special emergency taxes
which were to expire by limitation on
December 81, including taxes on
brokers, ship brokers, custom house
brokers, theaters and places of amuse-
mept, circuses, bowling alleys and bill
lard tables and manufacturers of to-
bacCo, cigars and cigarets, and gives
the President authority to adopt re-
taliatory measures toward any bel
ligerent nation that illegally interferes
with the trade or commerce of the
United States.
The bill was brought before both
houses of Congress after a three days
conference of a joint committee ap-
pointed to harmonize the many points
4. e. 1-ns III
to cut out all stamp taxes, thereby reJ
ducing the estimated revenue bill
about $5,000,000.
The Tax on Munitions
In order to recoup the reduction in
revenue made by abolishing the stamp
taxes, the tax on munitions of war was
increased from 10 per cent. to 1212
per cent. This provision applies to all
| manufactures of gunpowder and other
| explosives except where used for in
| dustrial purposes and sporting uses,
all projectiles, firearms of every kind
used for military purposes, electric
| motorboats and submarines, or parts
| of any of these articles This section
of the law is to be imperative within
| one year after the close of the war
| in Europe.
A modification of the special tax on
| joint stock companies and corporations
was agreed on by the conferees by
which, as the bill becomes a law. there
| is imposed a tax of so cents for each
| 1900 of such stock, with a proviso
| that the tax shall be based on the fair
value of the stock, and in arriving at
| the estimate of this value surplus and
undivided profits shall be taken into
account An exemption amounting to
| 500, 900 is allowed from the capital,
surplus and undivided profits before
this tax begins to run.
| The income tax applies as the bill
1 d. ill., L. - A1
| 5000 in the case of unmarried per-
sons and $4,000 in the case of mar
| ried man whose wife lives with him,
| or a married woman whose husband
| lives with her, as in the present law,
| but increases from l to per cent
pee annum the tax to be levied, as
sessed and collected on such net in
| comes
The Graduated Income Tax
An additional tax of l per cent. per
annum is to be levied on the amount
by which such net income exceeds
$50, 600 and does not exceed $40, 900;
2 per cent. on the amount by which
such net incomes exceed $4,000 and
do not exceed 100000; 3 per cent. be-
tween 100000 and $4,000; 4 per cent.
| between $4,000 and 100000; per
cent. between 100000 and s150,Oo0:
6 per cent. between $150.00O and
100000 Z per cent. between 100000
and $25o,00O: per cent. between
S250,0o and sS0O,0O0; per cent. be-
tween 100000 and 100000; 10 per
cent. between $5o0,000 and $1,000, 900;
II per cent. between $1,000,o00 and
| $500, 900; IL per cent between
81 1900, 900 and $4,000. 900, and 13 per
cent. on incomes above s2.000,000 per
annum.
The new paragraph placing high
duties on dyestuffs was retained by the
| conferees, but the Senate provision
postponing the operation of the new
rules until after the cessation of hos
tllities in the war in Europe was struck
out.
Federal Inheritance Tax
For the first time in the history of
the country Federal inheritance tax
is to be imposed, and the House bill on
| this subject is retained. 1t provides a
tax of 1 per cent. on estates up to
| $4,000, 2 per cent: on those between
| $4,000 and s150.000. 8 per cent on
those between $3.50, 900 and $3.50, 900,
per cent. between $250,000 and
$500, 900, 8 per cent. between $450,00
! and $1,O00,000, 6 per cent. between