The Birmingham age-herald., 1917-09-30
FINAL AGREEM B N IT ON WAR TAX BILL IS REACHED; CONFEREES WILL MAKE REPORT
(Continued from Page One,


 and not over 20 per cent Of such capi- tals; 35 per cent on excess over 20 and under 25 per cent of capital; 45 per cent on excess over 25 per cent and un- der 33 per cent of capital, and a maxi mum of 60 per cent on profits in excess of 33 per cent of such capital HOW CALCULATED In calculating war excess profits the term invested capital'' of corporations and partnerships was declared to in- clude actual cash paid in; actual cash of the tangible property paid for stock of shares, at the time of payment, or January l, 1914. but in no case to eX- ceed the par value of the original se- curities; paid in or earned surplus and undivided profits used or employed in the business, exclusive of individual profits earned during the taxable year. INTANGIBLE ASSETS The allowances for intangible assets included actual cash value of patents and copyrights paid in for stocks or shares at the time of payment, good will, trade marks, trade brands, 1 franchises if for bona fide payments not to exceed the cash value"
 It stipulates that such intangible as | sets eXCNanKcQ TOT cCuillASo, pSiOt V March 3, 1917, not exceeding 20 per cent of the total, shall be included at a value not exceeding fair cash value at the time of purchase
 SECOND-CLASS MAIL In lieu of the House zone tax on sec ond-class publications the conferees in- lcluded new zone system effective July 1, 1918, with different rates for reading matter and advertising matter with special, but increased rates Tor religious, agricultural and other pub lications.
 A flat increase of reading matter of A cent per pound until July l. 1919, ane F cent thereafter was provided. Adver tising matter exceeding per cent ol the total space would be taxed Iron + to 2A cents additional until July l 1919, and from F cent to Az cents more until July 1, 1920 and from A cent te 6A cents to 1921, and from cent to cents thereafter. z FIRST-CLASS MAIL An additional tax of is cent per pount until July l. 1919, and A cent thereafter on religious. agricultural, fraternal ano similar publications was adopted. The cent tax on letters, excepting drop letters and postal cards was re stored by the conferees. A$1-cent addi | ---~~~- I ing cards was added. The first-class mail increases are estimated to raise about $90,000OO, and is effective 90 days after the passage of the act. The Sen ate provision. exempting from postage fietter written by soldiers and sailors abroad was retaied. PASSENGER TRANSFORMATION The conferees levied 8 per cent in | lieu of the Senate rate of and the | House rate of 10 per cent on passenger l transportation, estimating to raise iron 1 the compromise levy about S60,0000O0 in 1 stead of $37,5O0,O0o under the Senate plan 1 The 8 per cent tax on freight transporta 1 tion was retained and the tax on express 1 transportation was increased so that 1 cent would be levied on each 25 paid in stead of each 25 cents.
 l The House 10 per cent tax on Pullman accommodations, cut to per cent by th' Senate. was restored and is estimated to raise $5.000.00o.
 AUTOMOBILE TAX
 Tn lieu of the House per cent tax or sales of automobiles by manufacturers and the Senate federal license tax or l cent tax on all motor vehicles, includinl trucks, payable by manufacturers. pro ducers and importers.
 Taxes of per cent on manufacturers sales of musical instruments and iewelr. also were written in, with tax of ! cent a foot on motion picture film.
 SPORTING GOODS l On sporting goods the revised bil l levied per cent on manufacturers sale instead of per cent proposed by tn l House and per cent by the Senate The 3 per cent levy also was adopted for cameras in lieu of the Senate pc cent rate, and chewing gum manufactur CTS would be taxed per cent of gros sales. q reduction of 3 per cent from tn House rate.
 BANK CHECKS
 The Senate per cent manufacturers
 sales taxes on perfumes and paten medicines were retained. N
 The Senate per cent stamp tax ol bank checks was not restored. but its ta' of 1 per cent on parcel post package costing 26 cents or more was retained
 Other stamp taxeS, all made effective De cember 1, were retained and the Hous itax on indemnity bonds restored. <
 INHERITANCE TAX
 A new system of graduated inheritanc
 taxes was written into the bill in lieu o
 the House plan and despite the Senate
 rejection of such taxes. The new rate
 on inheritances with those of American
 In military service exempted, range iron
 one-half of per cent on $50,O00 estate |
 10 per cent on estates of $lOONl00 an
 moro.
 The bulk ,of the incrsases between ssso.