Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1917-10-04
$275, 100000 Has Been Added
to Measure.
EXCESS PROFITS AT BILLION
Chief Changes Made in Taxes on Ex-
cess Profits, Income, Liquor, To-
baccos, Insurance, War Stamps,
Inheritance, Postal Rates
and Transportation.

after debate free from bitterness.
With it's final passage by the house
the bill goes again to the senate for
concurrence there in the work of the
senate and house conferees, who made
several changes by way of compromise.
AS revised by the cOnferees the
measure has been raised from the levy
fixed by the senate of $2,416,670,O00 to
an aggregate of approximately $780,
100000. Chairman Simmons of the
senate finance committee estimated
that the increase made by the con-
ferees would approach $275,00O,OOO.
In Conference for Months.
The war revenue bill has been be-
fore congress for nearly four months.
AS redrafted byH the conferees, said
Chairman Simmons, it has been inn
mensely improved, and he believes
there will be no obstacles to it's speedy
approval by congress this week.
The chief changes made in the bill
by the conferees were in the excess
profits, income tax, liquor taxes, taxes
on tobaccos and CIGARS insurance, war
rates and transportation.
The income tax rates as agreed upon
are substantially the same as passed
by the house with the Gerry amend
ments as passed by the senate. The
house agreed to the senate amendment
increasing the normal tax on corpora
tons from to 6 per cent. The bill
n6n1; chac
and substitutes information as pro-
vided in the senate amendments ex
cept as to what is known as the "tax
free covenant bonds" of corporations.
Profits Tax Modified.
The excess war profits tax, as
agreed to by the conferees, is a modi-
f1catiOn of the senate BILL the prin-
cipal changes being in the maximum
and minimum rates of exemption upon
which the tax is to be determined The
senate graduated scale of exemptions
ran from 6 to 10 per cent, while the
house exemption rate was per cent.
The cOnfefees adopted the graduated
rate of from to Q per cent
In lieu of the house zone tax on Sec
ond-class publications the conferees in
cluded a new zone system effective
July 1, 1918 with different rates for
reading matter and advertising mat
ter, with special but increased rate for
religious, agricultural and other publ
cations.
Postal Increase.
A flat increase on reading matter
Of Il e
until July L. 1919, and One-half cent
thereafter was provided. Advertising
matter exceeding 5 per cent of the
total space would be taxed from one.
fourth to two and one-fOurth cents adj
ditional until July /, 1919, and from
one-half cent to four and one-half cents
more until July 1, 1920; and from
three-fourths cent to six and three
fourths cents to 1921 and from one
cent to nine cents thereafter
An additional tax of one-half cent
per pound until July 1, 1919, and one.
fourth cent thereafter, on religious,
agricultural, fraternal and similar pub
LEGATIONS was adopted.
The one-cent tax on letters, except
ing drop letters and postal cards, was
restored by the conferees. A one
cent additional tax on postal and pri-
vate mailing cards was added.
Railroad Tickets Hit.
The conferees levied 3 per cent in
lieu of the senate rate Of 5 and the
house rate of 10 per cent on passen-
ger transportation, estimated to raise
from the compromise levy about $780,
100000 instead of 37,500,0OO under
the senate plan. The per cent tax
ON freight transportation was retained.
In lieu of the, house per cent tax
on sales of automobiles by manufac-
turers and the senate federal license
tax on owners, the conferees adopted
a 8 per cent tax on all motor vehicles,
including trucks, payable by manu-
facturers, producers and importers.
The senate 1-cent stamp tax on
bank checks was not restored.
The new rates on inheritances, with
those of Americans in military service
exempted, range from one half Of one
per cent on $4,000 estates to 10 per
cent on estates of $10000,OOO and
more.
With but few exceptions, the new
taxes are effective with the passage
of the act.
Senate Version Stands.
The income tax section was adopted
virtually as written by the senate.
The new 2 per cent normal tax On in
comes of more than $1,000 for married
persons and $1,000 for single persons
is in addition to the present law ex
empting incomes of less than $1,000
for single persons and $4,000 for mar
ried persons.
Amusement taxes agreed upon pre-
vide tax rate Of 1 cent on each 10
cents or fraction thereof of the admis-
sion charge. Nickel theaters were ex-
empted.
Increased senate rates on whisky