The circle banner. [volume] (Circle, Mont.) 1914-1939, 1917-10-12

Washington.-The joint conferees OF
the war revenue bill completed theil
draft after two weeks of deliberation
AS revised by the conferees the
measure has been raised from the levy
fixed by the senate of $2,416670,000 to
an aggregate of approximately $2,700,
100000. Chairman Simmons of the
senate finance committee estimated
that the increase made by the con-
ferees would approach $275,000,000.
Profits 7 ak Modified.
The excess war profits tax, as agreed
to by the cOnferees, is a modification
of the senate bill, the principal
changes being in the maximum and
minimum rates of exemption upon
which the tax is to be determined.
The senate graduated scale of exemp-
lions ran from 6 to 10 per cent, while
the house exemption rate was per
cent. The conferees adopted the grad
uated rate of from Z to per cent.
| The definition of capital which was
| a point upon which the cOnferees ar
gued for days, was modified so as TO
BILE property paid into a corporation
or partnership or individual business
before January 1, 1914, shall be taken
as of that date. The proviso as to
good will and other intangible prop
erty has been somewhat liberalized.
AS to Invested Capital"
In calculating war excess profits the
terms invested capital" of corpora
tions and partnerships was declared
to include actual cash paid in, actual
cash value and other tangible prop
erty paid for stock or shares at the
time of payment or January l, 1914,
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, eX-
elusive of undivided profits earned dur
ing the taxable year."
The allowance for intangible assets
includes actual cash value of patents
and copyrights paid in for stock or
shares at the time of payment :. e.
good will trademarks, trade brands,
franchises . +. if for bone-fide pay
ments not to exceed the cash value"
1t stipulates that such intangible |
assets exchanged for securities before
March 3, 1917, not exceeding 20 per |
cent of the total, shall be included at |
a value not exceeding a fair cash |
value at the time of purchase.
Postal Increases.
A flat increase on reading matter of
a cent per pound until July 1, 1919,
and IL cent thereafter was provided.
matter exceeding per
cent of the total space would be taxed
from "A to PA cents additional until
July 1, 1919, and from II to AZ cents
more until July L, 1920; and from y
TO 6A cents to 1921 and from l cent
% 9 cents thereafter.
An additional tax of Is cent per
pound until July 1, 1919, and Il cent
hereafter, on religious, agricultural,
'raternal and similar publications was
ldopted.
The l cent tax on letters, excepting
lrop letters and postal cards, was re-
tored by the conferees. A cent adj
llllOlldl ldA VII pOStdl anu piiNolS |
mailing cards was added. The first
lass mail increases are estimated to
aise S90000,000, and are effective 80
lays afetr the passage of the act. The
enate provision exempting from post
ge Letters written by soldiers and
ailors abroad was retained.
Railroad Tickets Hit.
The conferees levied s per cent in
ECU of the senate rate Of and the
ouse rate of 10 per cent on passenger
estimated to raise from
he compromise levy abouot s60,0O0,-
90 instead of S37, 100000 under the
enate plan. The per cent tax On
-eight transportation was retained
nd the tax on express transportation
as increased so that 1 cent would be
,vied on each 20 cents paid instead
{ each % cents. The house 10 per
ut to 5, per tent by the senate, was
sstOred and is estimated to raise So
10000. {
In lieu of the house per cent I
TX on sales of automobiles by manu- /
lcturers and the senate federal !
cense tax ON owners, the conferees
1Opted per cent tax on all motor {
shicles, including trucks, payable by {
producers and import
s. - c
Taxes of per cent of manufacture |
s. ales of musical instruments and
weIry also were written In, with a q
x of " cent foot on moti9R pic {
re film.
New INTERCHANGEABLE. q
A new system Of graduated inheri-
nee taxes was written into the bill
lieu of the house plan and despite
e senate's rejection of such taxes. t
ne new rates on inherltances, with O
ose of Americans in military service
empted, range from one-half of 1 f
r cent on $4,000 estates to 10 per v
mt on estates of $10,0O0,0OO and a
)re. l
The bulk of the increases of between il
sc, 100000 and $500, 100000 made by Fl