The Robesonian. [volume] (Lumberton, N.C.) 1870-current, 1917-10-04
FINAL ACTION ON WAR
TAX BILL BY CONGRESS
More Than Two and a Hall BIZ
lion Dollars i'm New Taxes Lev
led loy the Measure


Congress finished it's work on the
great war tax bill Tuesday when the
Senate, following the example set
Monday by the House, adopted the
conference report without roll call.
More than two and half billion dol
bars an new taxes are levied by the
measure, which has been IN the max
ing since last April.
AS finally drafted after one OF the
yongest and most strenuous struggles
I'm congressional history, the revenue
hi1. which was PASSED by the House
NAV % and by the Senate, after.
months debate, Sept. 10, draws prln-
cipaIly upon incomes and war excess
The bill now is estimated to raise
aboat $3.50. 100000 from incomes, cor
Dorzate and individual, and about one
billion dollars from war excess prof
Its. Other major levies are $50, OOO,-
0OG on tobacco; about $275, 100000 on
lSoxors: S7O,O00,000 on first-class
snail: $4O,OOO,O00 on automobiles;
$77.5OO 900 on freight transportation;
S6O,O0O,00 on passenger. transpor-
zion; S32 100000 from stamp taxes
and $6O000,000 from amusement ad-
missions.
Elimination of consumption taxes
on sugar, tea, coffee and gas, electric
and telephone service, together with
House taxes on 1916 incomes and
general 10 per cent tariff levy, were
features Of the evolution Of the bill.
The bill provides that a graduated
tax from 20 to so per cent on excess
profits of corporations, partnerships,
and individuals shall be levied on
basis of invested capital compared
with invested capital of the three pre-
war wears of 1911, 1912, 1913. This
as substitute for the Senate taxes
of from IL to 60 Der cent based up
on a similar comparison OF pre-war
and present profits.
The income tax section virtually
was unchanged except for re-arrange-
xnent of surtaxes on incomes between
$4,000 and $4,000. The graduated
surtaxes of from to SO per cent on
incomes from $4,000 to those of ST.
O60; 900 and over were approved.
The Senate increase of from z to4
DER cent of the income tax on cor
porations, joint stock companies and
Insurance companies was approved,
together with the new normal lndl-
uidual tax of 2 per cent on incomes
of unmarried persons in excess OF
81 900 and of married persons of more
than $4,000.
The graduated excess profits rates
are 20 per cent of excess profits not
In excess Of Is per cent of the in
vested capital for the taxable years;
rs per cent on profits in excess of
Is per cent and not over 20 per cent
of such capital; 35 per cent on ex-
cess over 20 and under rs per cent
of capital; As per cent on excess ov
er % per cent and under 33 per cent
of capital and maximum of go per
cent on profits in excess of 33 per
cent of such capital.
In calculating war excess profits
the term Invested capital" or corpO
rations and partnerships was declar-
ed to include "actual cash paid in,
actual cash value of other tangible
property 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 undl-
vided profits used or employed in the
business exclusive of undivided prof
ats carved during the taxable year"
kRCEcdStu L NdtNS.
The allowance for intangible assets,
Include ''actual cash value of patents
and copyrights paid for in stocks or
shares at the time of payment-good
will, trademarks, trade brands, fran
chises, if for bona fide payments not
TO exceed the cash value"
It STIMULATES that such Intangible
assets exchanged for securities, be-
fore March 3, 1917, not exceeding ~
1ser cent of the total shall be included
at value not exceeding fair cash
value at the time of purchase.
In lieu of the House zone tax On
second class publications the confer
4ses incladed a new zone system eff
fec1ive July 1, 1918, with different
rates for reading matter and adver-
Using matter with special, but in
creased rates for religious, argricul,
4ural and other publications.
A flat increase on reading matter
of IA of a cent per pound until July
Z, 1919, and 1-2 cent thereafter was
provided. Advertising matter exceed
ing per cent of the total space
would be taxed from IA to Il
cents additional until July /, 1919, ant
from 1-2 to IL cents more until Ju
iy /, 1920; and from ga cent to B..
CeNlS W 1SAl, anu lIOlA Celle W
cents thereafter.
Postal Cards Two Cents.
An additional tax of 1-8 cent pc
pound until July l, 1919, and IA cen
thereafter on religious, agriculture
fraternal and similar publication
was adopted. The same one cent ia
on letters, excepting drop letters wa
restored by the conferees. A on
cent additional tax on postal and pr
waite mailing cards was added. TIL
first class mail increases are to rails
sabout $9Q,00O,000 and effective 3
days after, the passage of the &C
The Senate provisions exemptin
from postage letters written by so
diers and sailors abroad was retair
ed.
The conferees levied 8 per cent
lieu of the Senate rate of 5 and tn
House rate of 10 per cent on passe1
xrar fro tot iop octipoafipo