Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-05-10
4 CAPITA TAX
in WAR REVENUE BILL

War state tax. 100000 (estimat-
ed. however. that the increase will
Yield $SS,500,0 900 when in full opera
tion).
Virgin Islands internal revenue $780,
900.
In presenting the bill. the ways
and means committee made q report,
saying in part:
after carefully considering the ex-
perience of the European countries at
war. h committee believes 1t is sound
economic policy for the present gener-
alton to bear q fair and equitable por-
ton of the burden of financing the
var and recommend that the remain
ing contemplated expenses Of the gov
eminent for the remainder of this
and the whole of the next fiscal year
this recommendation is that about one
half Of this contemplated expenditure
will be met by taxation and the other
half from the proceeds from bonds.
"1t is estimated that the deceipts
Of the federal government, including
postal receipts. for the next fiscal
year under existing laws, will amount
to $500. 600, 900. The proposed bill
is estimated to yield during a IL
al.
Will f1O S0S ret N6pltd.
This will make the total receipts
Of the government for the next fiscal
year $1,000. 00O. 900. or about $33 per
with a population less than half that
Of the United States. whose receipts,
including postal receipts for the year
ending March 81, 1917, amounted to
$3.50. 100000 or about $50 per capita.
1.-THE committee believes that the
American people were never in a more
favorable condition to pay a reason
able amount of Ike for war pur-
poses in addition to those for normal
purposes. than at the present time.
The committee has endeavored to dis
tribute equitably this additional bur-
den Of taxation and so to levy the pro-
posed taxes as to necessitate as little
readjustment or disturbance to bust
ness as possible"
Fight on Excess Profits Tax.
One of the hardest fights on the
bill. it is predicted, will center about
the increases in the excess profits tax.
Representative Fairchild Of New
York. who opposed these increases In
committee, and other representatives
will carry their opposition to the SEN
ate II necessary.
The committee explanations of the
involved language Of the bill show
that it's practical operation would be
as follows:
1t proposes a normal tax Of two per
cent on individuals having incomes
between $1,000 and $4,000 if single,
and $4,000 If married or the head of
a family. An additional normal tax
of two per cent would be added In
the case of larger incomes. At $4,000.
an additional sur-tax. graduated until
at 100000 and over it reaches 80 per
cent, would be imposed.
How 1t Would Work.
A married man with a $500 in
come. for example. would pay a tax
Of $205. 1t would be assessed in this
manner:
An exemption of $4,000: a tax of
two per cent. of $40 on the next ST.
900 up to $4,000; a tax Of Jour per
cent on the difference between $4,000
and $500; or $140: a sur-tax Of one
per cent on all ove $1,000. or $25.
A single man with a $500 income
would pay $245. He would pay $40
at two per emit on income. between
$1,000 n $4,000: $3.50 at four per
cent between $4,000 and $500, and
a sur-tax Of s25 at n per cent on
the $500 above $4,000.
Sur-taxes under the present law do
not begin until $4,000 is reached and
exemptions begin at $4,000 n $4.-
900 for single and married persons
reSpectiye1y.