Bisbee daily review., 1917-10-28

Every man, woman and child in the United States is affected by the new revenue bill, many sections of which go into effect in a few days. In or der to give intelligent information about this all-important measure, The Review has secured the following di. gest of the lengthy bill, through the courtesy of Congressman Carl Hay den.
 Individual Income Tax.
 Normal Tax: The normal tax of per cent is doubled for citizens and residents of the United States and as to the additional per cent the per sonal exemptions are S2,000 and $1,000 respectively for single and married persons, with S200 additional exemp- tion for each dependent child; this exemption on account of dependent children is also allowed in connection with the exemptions of $S,O00 and $4,000 for the existing normal tax. Returns of net income are required of single persons who have S1 900 and married persons who have S2,0OO.
 Additional Taxes: Surtaxes, addi- tional to those already in existence, begin with per cent on net incomes between S5,000 and s7,500, increase by 1 per cent by steps fixed in exist ing law to per cent on S15,O00-$2O,- 900 by per cent from s20,000-$60, 900, by per cent from s60.000 to s150,00O, are 25 per cent on s150,0O0-s2O0,0 900, 30 per cent on $15O,OOO. 34 per cent on s25O,OOO to s30O,OO0, 37 per cent on S3OO,0O to $5OO.000. 40 per cent on $500, ,OOO-s75O, 900. 45 per cent on s75O, ,OOO-s1OOO,O ,OOO, and 50 per cent on net income in excess of s1,000,00O.
 Information at Source: For the withholding at source now in effect. iu- formation at source will be substi- tuted after January 1, 1918, except as to income of nonresident aliens and from bonds containing tax-free cove nants. Returns would be required from all persons, firms and corpora tions making payment to another per
  determinable gains, profits or income except dividends and receipts through brokers doing business on an exchange-of $500 or more a year Returns are to be made of the fact of payment, giving name and address of recipient. Corporations are to give information regarding all payment of dividends Brokers doing business on exchanges are to give information re- garding profits and losses of custo- mers.
 Alterations in Law: Changes made in the present law under which indi- vidual income tax is collected include: nonresident aliens are not allowed personal exemptions from tax; divi- dends received from earnings made be- fore March l, 1913, would not be taxed, provided distribution of dividends earned since March l, 1913, has been made. Dividends paid in 1917 or sub seduent years would be considered in- come for the year in which received; they are to be deemed paid from the most recently accumulated surplus and taxed to the distributee at the rates in force for the years when accumulated. Interest and excess profits taxes and the interest upon money borrowed tol invest in tax-free securities may not be deducted from net income, but in assessing income tax net income might be credited with war profits taxes as- sessed in the same calendar year. IT a partnership uses fiscal year diff ferent from the year before and alter January 1. 1917, and the parts subject ed to taxes at the rate of the differ ent years. Gifts made within the year to charitable institutions might be de ducted from net income if not in eX- cess of 15 per cent thereof, under reg ulations by the commissioner fin ternal revenue.
 Corporation Income Tax.
 A new tax of per cent is imposed upon the net income of corporations, making the combined existing and new taxes equal per cent.
 Surplus Tax: Moreover, tax of 10 per cent is imposed upon the net in- come which remains undistributed at the end of months after the calendar or fiscal year, with exemption, how ever, for any amount actually invested and employed in the business or in vested in obligations of the U. $. is- sued after September 1, 1917. If the secretary of the treasury found that an amount kept was not so employed for the business, the tax would be b per cent.
 Alterations in Law: Changes pro posed in the law include: Income may be credited with dividends of other taxable corporations, stock dividends received are to be considered income at their cash value; dividends received from earnings made during 1917 and subsequent years would be taxable at the rate in effect in the year when earned. Dividends or surplus accrued prior to March 1. 1913, would not be subject to tax under the bill and might be distributed without tax after