New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1917-10-09
INTERNAL REVENUE
MAKES BOLD CLAIM
Say That Cigar Manufacturers
Are Making Dealers Pay

Inc internal revenue collectors Of
this district, who have been making a
canvass of liquor and cigar and to-
oacco dealers and taking inventory
OF their stock, claim that cigar man.
ufacturers are making the dealers
pay wholly the tax on five-cent cigars,
and these latter in turn are imposing
the extra cost upon the consumer,
that is, instead Of dividing it be-
tween himself and the retailer the
manufacturer has seen fit to place
the burden upon the retailer Under
the new revenue act which went into
effect October all dealers who have
over 1000 cigars on hand must pay
tax of 81 per 1000 on the five-cent
variety. To meet this tax the manu-
1acturers have increased the price SO
per 1000 cigars. This pays the tax
and 50 per 1000 extra which they
get out of the retailer. The retailer
must then sell the six for quarter
cigars for five cents straight to break
even The cigars cost him four cents
and he must sell them for only five
cents
The tax on the ten-cent cigars is
80 per 1000 and the manufac-
turers have increased the price exact
ly to meet that tax The cigars sell
now for ten cents straight instead of
three for twenty-five cents.
A large number of small dealers
and saloonkeepers will find it difficult
to pay the internal revenue tax upon
all forms of Spirits and distilled
liquors. The law went into effect last
Thursday. 1t raises the original tax
from $1.1O on gallon of liquor to
$500. Dealers who have, for in
stance, ten barrels, amounting to
about fifty gallons will have to pay
the government tax of $1,000, and
many saloonkeepers may find trouble
in raising Immediately this amount
which must be paid by October ~,
twelve days after the enactment of
the law, if they are able to pay If
they are not able to pay cash for the
tax they must certify that they can
not pay, and they must file bond of
a qualified surety company for twice
the amount of the tax on the day
they file their inventory. They are
then given thirty days leeway from
October 16 in which to pay the
amount due the governm emit Dealers
have already received their official in
ventory from the government collec-
tors as of October 4, and they must
make oath before notary or go to
the revenue collectors office and
swear to the inventory which they
make, which will correspond with the
governments for it's representatives
have carefully ascertained the exact
amount of cigars, liquor and tobacco
in the country.
The increase in the tax will, of
necessity, raise the price of all liquors.
and some of them have already jump
ed sky high. For instance a. drink
of whiskey which sold two weeks ago
for twenty cents is now forty cents,
and all whisl1ey will probably cost at
least twenty-five cents a drink within
a short time.
The internal revenue officers say
that there is misrepresentation on the
part of many as to the time when the
income tax must be paid the govern
ment. The report on incomes need
not be made until January, and after
that the limit of two months has been
set. Hence person has the SO days
between December 81 and March 1 in
which to make the return. The report
must be made by individuals and cor
porations alike. All wage earners may
be affected yet as we'll as all salaried
people, men and women.
In paying the tax a married man
is exempted in the sum of $4,000; a
single man is exempted in the sum of
1000. In making a report person
is required to name his gross income
first He is then permitted to deduct
his taxes, interest charges, repairs
and like legitimate expenses. From the
balance a person married may then
deduct $4,000 and a single person may
deduct $1,000. On the net amount thus
a person is to be taxed
next year.