Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-09-30
incomes Are Cinched Heavily
and Excess Profits Must
Give Lions Share to Uncle
Sam, Measure Says.
LETTER POSTAGE HIT;
SECOND CLASS ALSO
Religious, Agricultural and
FratefnaI Papers Must Pay
Additional 0ne-eighth of
Cent ON Each Pound.

'1' HoNNiNo JOURNAL bFtcftL kEhsgp
Washington, Sept 2s.--FinaI agree
ment on the $2,7OO,oOO,O 900 war tax
bill was reached late today by the
senate and house conferees and the
report will be presented to the house
Monday. Levies of approximately
$1,000, 100000 on war excess profits
and $4,000, coo on incomes were left
unchanged, but new system of cal
culating excess profits was adopted.
The conference report provides that
the graduated tax of from 20 to 60
per cent on excess profits of corpora
tons. partnerships and individuals
shall be levied on a basis Of invested
capital compared with invested capi-
tai of the three pre-war years of 1911,
1912 AMI 1913. This is a substitute
for the senate taxes of from 16 to 60
per cent based upon a similar compar-
lson of pre-war and present profits.
The income tax section virtually was
unchanged, except - v,aCrFnyement
of surtaxes on incomes between $15,-
600 and $4,000. The graduated sur
comes from $4,000 to those of a mil
lion dollars and over were approved.
Increase on Incomes.
The senate increase OF from 2 to
per cent of the income tax on corpo-
rations, joint stock companies and in
surance companies was approved. to-
gether with the new normal individual
krx q
married persons in excess of $1,000
and of married persons of more than
$4,000.
The graduated excess profits rates
are 20 per cent of the excess profits
not in excess of Is per cent of the in.
vested capital for the taxable year;
rs per cent on profits in excess of Is
per cent and not over 20 per cent of
such capital; 35 per cent on excess
over 20 and under 25 per cent of cap
ltal: As per cent on excess over 25 per
lcent and under 33 per cent of capital
and a maximum of 60 per cent on
profits in excess of SO per cent of such
capital.
Define Invested Capital.
III wal SNScoS DtOllld
the term Invested capital of cor.
porations and partnership" was de-
clared to include actual cash paid in,
actual cash value of other tangible
property paid for stock or shares, at
the time of payment on January 1.
1914, but in no case to exceed the par
value of the original securities; paid
in or earned surplus and undivided
profits used or employed in the busi-
ness, exclusive of undivided profits
earned during the taxable year."
The allowances for intangible as
sets include actual cash value Of
patents and copyrights paid in for
stocks or shares at the time of pay
ment good will, trad marks,
trade brands, franchises if
for bona fide payments not to exceed
the cash value
1t stipulates that such intangible
assets exchanged for securities before
March 3, 1917, not exceeding 20 per
cent of the total, shall not be includ-
ed at value not exceeding fair
cash value at the time of purchase.
second CIhSS Man.
In lieu of the house zone tax on
second class publications the conferees
included a new zone system effective
July 1, 1918, with different rates for
reading matter and advertising mat
ter with special but increased rates
for religious, agricultural and other
publications.
A flat increase on reading matter Of
a quarter or cent a pound until July
4, 1919, and one-half cent thereafter
was provided. Advertising matter ex-
ceeding per cent Of the total space
would be taxed from u to az cents
additional until July l. 1919, and from
one-half cent to " cents more until
July /, 1920; and from three-fourths
cent to 6% cents to 1921, and from /
cent to cents thereafter.
An additional tax of one-eighth cent
per pound until July 1, 1919, and one
fourth cent thereafter on religious,
agricultural, fraternal and similar
publications was adopted.
Letter Tax Comes Quickly.
The 1-cent tax on letters, excepting
drop letters and postal cards, was re-
stored by the conferees. 1t is esti-
mated to raise about $4,000. 900 and
is effective thirty days after the pass
age Of the act. The senate provision