The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1917-11-01
NEW WAR TAXES
WILL Be FELT
EVERY CITIZEN WILL SOON
SHARE THE BURDEN.
EVERY BUSINESS WILL Be HIT
Diversified Nature Of the imposts viii
Reach Practically Everybody.
Revenues for War Must Be
Raised by Government


war? ' E'-r
Liberty bonds? Yes, that's going to
meet part of the bill, but not all by a
long shot. If you don't believe it ask
the internal revenue man in your vi
cinty. If you have fairly big income
or are engaged in certain line of
business, maybe he's called on you al
ready. w
No? Well, if you believe in the old
fashioned method of passing the
buck" someone you deal with may
have already raised the price of your
morning cigar, But that's only one of
the many ways Uncle Sam has of get
ting money. Tobacco, however, brings
in quite a large revenue In fact, it's
one of the largest sources of internal
revenue.
The government has recognized
that the amount Of money required to
successfully prosecute the war will
have to come almost entirely through
special fnpositions upon property and
business These federal taxes repre-
sent the largest taxation budget in
our history. Many of the people who
win have to pay these taxes will also
De the largest investors in Liberty
bonds. Accordingly the government
has sought to be fair, to distribute the
burden as equitably as possible, and
to impose no tax which would not
leave the taxpayer reasonable COM
pensatory return for his investment.
Income and war profit taxes, inter
nal revenue taxes upon whiskey and
tobacco, and certain moderate subsi-
Gary levies in the form of excise taxes
form the bulk of our present federal
war tax system.
New Income Tax Measure.
Most renumerative of all the new
taxes, is, of course, the war income
tax All persons having an income of
81 900 or over per annum are requir-
cd to report to the United States rev
enue Office Making a report does not
necessarily obligate the payment OF a
tax.
Single individuals making between
81 900 and $4,000 will have to pay a
2 per cent tax, while married individ-
uals or those at the head of family
making an annual income of between
$4,000 and $4,000 viii pay the same
rate.
Net incomes of corporations, joint
stock companies or associations and
iusurancecomDanies are also taxable.
Additional income taxes are also pro
vided for those whose yearly earnings
are moro than $4,000. b"
The war excess profits tax promises
fertile field. The present excess
profits rate is per cent upon the net
income shown by the return of each
corporation or partnership after de-
ducing $1,000 and an amount equal to
S per cent Of the actual capital invest
ed The new tax proposes the levying
Of graduated tax on the net income,
according to certain definite rcstric-
tions. 1t is estimated that under the
existing law that excess profits tax
as amended will yield 100000, 900.
Tho war tax on beverages will in
crease the levy on distilled spirits to
1920 per proof gallon. This tax af-
fects all liquor now in storage, but no
more is being manufactured. All fer
mented liquors will be subject to an
Increased tax. Grape juice. soda pop,
carbonated and mineral waters will
also be subjected to small tax. Even
soft drinks are not entirely exempted.
Smokes are Hit.
The war tax on tobacco is already
being felt by the smokers, many Of
whom are having to pay six cents for
cigars where they formerly paid five.
Even snuff is taxed. Cigars and cigar
cts are taxed according to their
weight per thousand The price that
they are manufactured or imported to
sell at also has bearing on the tax.
1t is estimated that the additional tax
on tobacco, snuff, cigaret papers, etc,
will yield about $5O,OOO,000 in years
time.
There is to be sure war tax on
facilities furnished by public utilities,
advertising and insurance. Many rail
roads have issued statements regard
ing the war taxes on freight, express
and passenger tickets which become
effective Nov. 1. Three per cent of the
transportation cost will be the tax on
freight by rail or water. A war tax of
per cent will be taxed onto the price
of every railway ticket. Every pas.
senger viii be required to pay this
tax
The railroads, steamship companies
and interurban lines viii be required
to keep a strict record of every pas
senger, piece of freight and package
hauled. There win be taxes on tele-
phone and telegraph messages. Duties
will be laid on life. marine, inland,
ilre and casualty Insurance. About
5000. 100000 win be collected by the
government from these sources alone.
Pay for Pleasure.
Taxes will be levied on excess ad-