Evening star., 1917-09-30

F! for each dependent child to heads of
families subject to the present law
was retained.
The exemption for children. however.
does not apply to those subject to the
| new reduced taxes with the $4,000 and
$1,000 exemptions. respectively. for
married and single persons.
Provision for Surtaxes.
surtaxes were agreed upon as follows:
One per cent on incomes more than
$4,000 and less than $1,000; per cent,
between $500 and $4,000: 3 per cent.
between $4,000 and s12.500: per cent,
between S12,500 and $4,000: per cent.
between $4,000 and $4,000: 10 per cent.
between $4,000 and $50. 900; "A per cent.
between s6o.o0o and $4,000; IS per cent,
between sSo.0o0 and 100000: % per
cent. between 100000 and $3.50, 900: 70
per cent. between s15o.ooo and 100000;
so per cent. between 100000 and $780,
| 600; "a per cent. between s250,00o and
$4,000 900; 81 per cent. between S3ooo0o
and 100000: 40 per cent, between $500
600 and S75O,000; As per cent, between
$3.50, 900 and s1.0Oo.0oo. and so per cent
on incomes exceeding S1,000,000.
Increased Senate rates on whisky and
beer were virtually retained and that
on wines somewhat reduced. The tax
on distilled spirits was made $40 per
gallon when for beverage use and 81
less for industrial purposes. estimated
to raise S135.000.00o. The amendment
prohibiting importation of distilled
spirits for beverage use was retained
Floor taxes to reach withdrawn liquors
were approved. Beer was taxed $3.50
per barrel additional, to raise S46.000.
000 an increase of 25 cents per barrel
over the House rate.
Present wine taxes were doubled.
Taxes on non-a1coholic beverages We're
compromised. On prepared sirups and
extracts the taxes graduated from to
20 cents instead OF from to IL cents
4 gallon were adopted. Grape juice and
other soft drinks are taxed l cent per
gallon, as provided by the Senate in re-
ducing the original 2-cent rate OF the
House.
Senate rates on cigars and cigarettes
were retained, but those on tobacco and
snuff were increased from cents to 5
cents a pound.
Stamp Taxes Agreed Upon.
Stamp taxes agreed upon were: Bonds
of Indebtedness, s cents on each 800;
indemnity and surety bonds. so cents:
parcel post packages. 1 cent for each
25 cents of the cost of transportation:
capital stock, original issues, cents
per 500: sales and transfers, 2 cents
per 500; sales of produce on ex-
change, 2 cents for each 800 value in
merchandise: drafts. checks payable
issory notes. except bank notes for cir
culation. and renewals, 2 cents for all
sums below 800, and cents for each
additional 800 or fraction thereof: con-
veyance papers. SO cents between 500
and $500. and so cents for each addi-
tional $500: customhouse entries. from
25 cents to 81; entry for withdrawal
from bonded warehouses, so cents;
passenger vessel tickets for ports other
than those in the United States, Can
ada and Mexico, between $40 and $40,
81: between $50 and $50. SO. and above
$50, IS: voting proxies, 10 cents: power
of attorney, 25 cents: playing cards,
decks of not more than ffty-four cards,
an additional cents on the present
rates.
Messages by Wire and Radio.
House and Senate provisions for a tax
of cents each on telegraph. telephone
and radio messages costing is cents or
more and designed to raise $1,000. 900
were retained. but the House tax on
gas, electric and telephone service was
eliminated.
Taxes on life insurance, eliminated
from the House bill by the Senate, were
amended and reinserted, raising about
s5,000.000. Effective November /, the
new taxes on new insurance policies is
sued are cents per 800 or fraction
thereof on life insurance and l cent per
81 on the premium charged on marine,
casualty fire and inland insurance.
Amusement taxes agreed upon provide
that all persons entering places of
| amusement free, except employees and
| officials on duty and children under
twelve, would pay tax at a rate of
| cent on each 10 cents or fraction thereof
OF the admission charge This tax also
would apply to cabarets and similar per-
formanceS where the cost of entertain
\ ment is included in other costs such
as service. Holders of annual box seats
| would pay 10 per cent of the annual
rental. Nickel theaters and shows. rides
and other outdoor park amusements with
a ma ximum admission of 10 cents and
benefit entertainments and agricultural
| fairs were exempted.
Tax on Club Members.
| After November 1, 1917, members of
all clubs-except certain fraternal or
| ders paying more than $12 annual
dues-would be subject to 10 per cent
| tax.
! On excess profits the conferees agreed
| upon a minimum deduction of per
cent and maximum of 10 per cent in
! stead of the to 10 per cent fixed by
| the Senate. Other exemptions are $3.-
900 for corporations and $4,000 for in
| dividuals. Corporations, partnerships
and individuals having no capital stock
| would pay a fiat rate of per cent on
net profits in excess of $4,000 for cor
porations and of $4,000 for individuals
| and partnerships.
| Miscellaneous income tax amendments
! inserted by the Senate were generally
adopted. including the so-called Jones
| amendment for a tax Of 10 per cent on
corporations undisturbed surplus, with
out allowance for income taxes
| paid. The 10 per cent tax would not
apply to undistributed income actually
invested or employed in business or in
vested in federal securities after Sep
tember ]. 1917. and per cent penalty
for surplus retained. but not employed
is provided.
In making provision for administra-
tion and collection of the new and ex-
isting taxes. the conferees provided
that the special tax OF 12h per cent on
war munitions manufacturers shall be
reduced to 10 per cent, but retained to
| JANUARY 1 1ql2 II yields aholl1