The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-09-30
Senate Increases Approved
and Higher Proportion of
Excess Profits Reached.
BILLION FROM LATTER
Tax on Incomes Begins at
$1,000 for Single Men and
$1,000 for the Married.
POSTAGE TO BE 8 CENTS
Bank Checks Not to Pay Trib-
ute, but Railway Fares Will
Yield Big Revenue.
POSTAGE TO BE 8 CENTS
Special Despafch 10 Tar sux.

Special Despafch TO THE suS.
WAsHfNuroN. Sept. 29.-Conferees of
the Senate and House agreed late to-day
On the t:.7oo. 100000 war tax bill and a
report will be presented to the House
Monday.
Meanwhile the amended report leaves
unchanged approximately $1,000. .G0o.0
on war excess profits and the $s42.0OO,-
coo OIL incomes. A new system Of calcu-
lating excess profits was adopted.
The Senate increase Of from to I
PER cent. OF the income tax on corpora
tions. joint stock companies and insur-
with the new normal individual tax Of
per cent. on incomes OF unmarried
persons in excess Of $1,000, and of mar
ried persons of moro than $4,000.
The income tax section virtually was
unchanged except for arrangements Of
surtaxes on incomes between $4,000
and $4,000. The graduated surtaxes Of
from l to 80 per cent. on incomes from
$4,000 to these OF 100000 and over
were approved.
Excess Pronts Tax Changed.
The conference report provides that
DE graduate tax of from 20 to so per
cent on excess profits Of corporations,
Dartnershipa and individuals shall be
levied on "a basis of invested capital
compared with invested capital of the
three prewar years of 1911. 1912. 1913.
This is a substitute for the Senate taxes
Of from Is to 60 per cent. based upon a
similar comparison Of prewar and pres
ent profits.
The graduated excess profits rates are
20 per cent Of excess profits not in ex-
cess Of lS per cent. of the invested capi-
tai for the taxable year 2s per cent. ON
profits Ii excess Of i5 per cent. and not
over 30 par cent. of such capital; 36 per
cent on &xcess over 20 and undeFr26 pee
cent OF capital; As per cent. on over g5
per cent. and under 33 per cent. of capi-
tai. and maximum Of so per cent. on
profts In excess Of 80 per cent. Of such
capital
In calculating war excess profits the
term Invested capital Of corporations
and partnerships was declared to include
actual cash paid in, actual cash value
Of other tangible property paid for stock
or shares at the time Of payment on jan
uary ], 1el4, but in no case to exceed the
par value of the original securities: paid
In or earned surplus and undivided
profits used or employed in the business
exclusive Of undivided profits earned
during the taxable year."
The allowances for intangible assets
include actual cash value Of patents and
copyrights paid In for stocks or shares
At the thine Of payment good
will, trade marks, trade brands. fran
ehse, " for bona fide pay
ments not to exceed the cash value"
1t stipulates that such intangible as
sets exchanged for securities before
March 3, 1917. not exceeding 20 per
cent. of the total shall be included at a
value not exceeding fair cash value At
the time Of purchase.
hank Cheeks to he Uataxed.
The Senate / cent stamp tax on bank
checks was not restored. but It's tax OF
cent on parcel post packages costing
IS cents or more was retained. Other
stamp taxes, all made effective Decem-
ber I. were retained and the House tax
on indemnity bonds restored.
The conferees levied s per cent. In
lieu of the Senate rate Of 5 and the
House rate of 10 per cent. on passenger
transportation. estimating to raise from
the compromise levy about 360.0O0.000
The per cent tax on freight trans-
portation was retained and the tax on
express transportation was Increased
90 that I cent would be levied on each
30 cents paid instead Of each rs cents
The House 10 per cent tax on Pullman
accommodations was restored and ts
estimated to ra ise v5.000,000
In lieu Of the House 5 per cent. tax
on sales of automobiles by manufac.
turers and the Senate Federal license
tax on owners. the conferees adopted a
per cent. tax on all motor vehicles
payable by manufacturers, producers
and importers.
Zone System for Newspapers.
In lieu of the House zone tax on
second class publications the conferees
Included a new zone system effective
July /, 1918, with different rates foI
reading matter and advertising matter
with special but increased rates for re-
hgious. agricultural and other publica-
tions. A fiat increase on reading matter
Of 4 cent a pound until July /. 1919
and n cent thereafter was provided
Advertising matter exceeding 5 per cent
Of the total space would be taxed from
n to 2h cents additional until July I
1919. and from ~ cent to 4h cents more
until July /, 1920, and from Y cents tc
S& cents to 1921. and from / cent to
cents thereafter.
The ! cent tax on letters. excepting
drop letters and postal cards, was re-
stored by the conferees. 1t In estimated
TO raise about 10000, 900 and IL effective
thirty days after the passage OF the act
The Senate provision exempting from
postage letters written by soldiers ant
sailors abroad was retained
Changes Made by COnferees.
The following are the importan
changes made by the conferees In tn
Senate and House bills
Except as otherwise provided, the bill
will take effect upon its passage ant
will remain In force until repealed.
INCOME TAN
The income tax rates are practically a
the bill passed the House with tn
Gerry amendments added. The HOus
agreed to the Senate amendment In
Continued on Eighth PAGE