The states-graphic. (Brownsville, Tenn.) 1???-1984, 1917-10-12
MARRIED AND
UNMARRIED


10000 10000 -16
$4,000 $4,000 - - --21
$4,000 100000 &c
And on up at rapidly increasing
rate to $1,000,0O0, when the rate is 81
per cent, and at 100000 and over it
is 67 per cent, which is the highest.
Who must pay? Every corporation
with a net income exceeding $4,000
and every partnership or individual
with net income derived from the op-
Grafton of any kind of business which
exceeds $4,000 for the present year is
liable to pay tax on the amount of
its excess profits. 1t hits farmers, doc
tors, lawyers, store keepers, authors,
real estate men, contractors, and, in
fact, everybody that works who is not
on fixed wage or salary and has an
income big enough to come within the
scope of the law.
What are excess profits. If you
want rough idea of the excess profits
of your business, take the amount by
which the net income for 1917 exceeds
per cent on the capital invested, and
subtract $4,000 from this if you are
operating partnership or individual
business, and $4,000 if you are organ
lied as corporation. For example,
suppose your capital is 100000 and
your net income is $4,000. Eight per
cent is $4,000, to which you add $4,000
for corporation and $4,000 for an in
dividual or partnership, leaving the
excess profits $4,000 for corporation
and $4,000 for an individual or part
nership business.
How to calculate the amount of ex-
cess profits tax; After you have de-
ternined the amount Of excess profits,
\ il tlescrisad Ahuye VIZ : - = - VI
/ figure rne amount o. TAX you win have
to pay. First find out what per cent
these excess profits are Of the actual
capital for the present year, Then APP
ply the following rates:
On the amount
Less than Is per cent Of
capital you pay - 20 per cent
Is to 20 per cent of capital
you pay - - - ---25 per cent
20 to 25 per cent of capital
you pay - - - --35 per cent
rs to 33 per cent of capital
you pay - = --45 per cent
More than 33 per cent of
capital, you pay - go per cent
To illustrate: Suppose your excess
profits on 100000 capital are $4,000
or 81 per cent.
On the amount
Under $4,000 you will pay
20 per cent Or - $4,000
$4,000 to $40 you will pay
25 per cent or - -----$1,250
$4,000 to $4,000 you will pay
35 per cent or - ----- 81, ,750
$25,000 to $4,000 you will pay
45 per cent, or - - ----$3, 600
More than $33 you will pay
go per cent, or - ----- so, 400
Making the total tax - $4,000
There are internal revenue taxes of
$1.10 and $2.10 gallon on distilled
spirits, $1.50 barrel on beer, to 20
cents gallon on soft drinks, 1 cent
gallon on grape juice, soft drinks,
"near beer" etc.
Cigars are taxed from 25c to 81
per 1000, depending on quality, with
a tax of 81 per 1000 on the five cent
variety. Cigarettes are taxed 8 to 12
cents per hundred.
Tobacco pays 5 cents a pound and
cigarette papers / cent hundred.
Then there are the transportation
taxes, 8 per cent on all freight bills,
l cent on each 20 cents Of express bills,
per cent on all passenger tickets and
10 per cent on Pullman car charges,
and five cents on each teleghaph or
telephone message costing over Is
cents.
On all jewelry, autos, motorcycles,
piano players, monographs and rec
ords in future per cent of sale price
New life insurance policies pay cents
for every hundred dollars of face val
ue or if under $500 40 per cent Of first
weekly premium, and all other new in
surance policies cent for each dollar
of the annual premium.
After thirty days the postal rate on
all letters, except drop letters, will be
3 eerts an ounce, and there will be an
extra charge Of l cent for each %
cents charged on parcel post packages.
There are new set Of taxes on es-
tates over $4,000, reaching 10 per
cent on $1,000,000.
Yachts pay SOC to 81 per linear foot
and motor boats SIS each.
Tickets of admission to all kinds of
amusements pay / cent for each 10
cents of the price. This does not APP
ply to movies where charge is 5 cents
or less, or to other 10 cent shows.