Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1917-10-20

uIaIt alter TWO weeks of uclibcrutiOn.
AS revised by the conferees the
measure has been raised from the levy
liked by the senate of $2,41G,G7O, 900 to
an aggregate of approximately $2,7OO,-
CooooO. Chairman Simmons of the
senate finance committee estimated
that the increase made by the con.
fcrccs would approach $275, OoO, 900.
Profits lax Modified.
The excess war profits tax, as agreed
to by the cOnfcrees, Is 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 cXcmp-
tons ran from to 10 per cent, while
the house exemption rate was S per
cent The confcrces adopted the grad
uatcd rate of from to 8 per cent.
The definition of capital, which was
IL point upon which the confcrces ar-
gucd for days, was modified SO rs to
provide that the actual value of tnngl-
bic property paid into corporation
or partnership or individual business
before January 1, 1914, shall be taken
us of thnt date. The provso as to
good will and other intangible prop
erty has been somewhat libcrnlizcd.
AS to mnvested Capital"
III calculating war excess profits the
terms Invested capitnr of corpora
tons 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 /, 1014,
but In no case to exceed tho par value
of the original securities; paid In or
earned surplus and undivided profits
used or employed In the business, cx-
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 :.
good will trademarks, trade brands,
franchises :. II for bone-1lde pay
ments not to exceed the cash value"
1t stipulntes that such intangible
assets exchanged for securities before
March 3, 1917, not exceeding 20 per
cent of the total, shall be included at
q value not exesed!ng faic-t,cS:aplsn.
value ut the time Of purchase.
Postal Increases.
a fiat Increase on reading matter of
Il cent per pound until July l, 1919,
and Il cent thereafter was provided.
Advertising matter exceeding 8 per
cent of the total space would be taxed
from Il to 2A cents additional until
July l, 1910, and from Il to AZ cents
more until July l, 1920; and from Y
to OK cents to 1921 ana from l cent
to cents thereafter.
An additional tax of Is cent per
pound until July l, 1910, and Il cent
thereafter, on religious, agricultural,
fraternnl and similar publications was
adopted.
The l cent tax on letters, excepting
| drop letters and postal cards, was re-
etored by the confcrees. a / cent ad-
ditional tax on postal and private
mailing cards was added. The first
class mail increases are estimated to
raise $00,OOO,O0O, and are effective 80
days afotr the passage OF the act. The
senate provision cNempting from post
age Letters written by soldiers and
sailors abroad was retained.
Railroad Tickets Hit.
The conferces levied 8 per cent In
lieu of the senate rate Of 5 and the
house rate OF 10 per cent on passenger
transportation, estimated to raise from
the compromise levy abouot $G0,O00,-
900 instead of $37, 100000 under the
senate plan. The 3 per cent tax on
freight transportation was retained
and the tax on express transportation
was increased so that l cent would be
levied on each 20 cents paid instead
of onch 20 cents. The house 10 per
cent tax on Pullman Accommodations
cut to 5 per cent by the senate, was
restored and is estimated to raise So
| 100000.
In lieu Of the house per cent
tax on sales of automobiles by manu-.
facturcrs and the senate federal
license tax on owners, the conferees
adopted 3 per cent tax on all motor
vehicles, including trucks, payable by
manufacturers, producers and import
| ers.
Taxes Of per cont of manufacture
ers' ales Of musical Instruments and
jewelry also were written in, with
tax Of II cent foot on motion pic
ture film.
New Inheritance Tax.
A new system Of graduated nherl-
lance taxes was written into the bill
in lieu of the house plan and despite
the senates rejection Of such taxes.
The new rates on inhcritances, with
those Of Americans in military service
exempted, range from one-hnlf Of l
per cent on $4,000 estates to 10 per
cent on estates of $1O,000,O0O and
more.
I The bulk Of the increases Of between
$3.50. 100000 and $3O0,OOO,O00 made by
the conferees in the senate bill was
secured from the postage, public utili-
ties and manufacturing sales section
l T.