The Miller press. [volume] (Miller, S.D.) 190?-current, 1917-10-11
CONGRESS MAKES LEVY At SIT
FOR EVERY MAN, WOMAN AND
CHILD IN THE UNITED STATES
Excess Profits Revenue at Bill on, and Incomes at Nearly as
Much Remain Practically Unchanged by Work of
The Conferees.
Corporations wl Pay Their Full Share Toward the Financing Of the War
Nw System 'of Graduating the A aount of Assessment Adopted Be-
Ieved C Be the Best That Could Be Devised.

"eA ACFEhuC DlIl COIuDleIeu lHtlT
draft after W weeks of elaboration.
AS revised by the conferees the
measure has been raised from the levy
liked by the enate of $2,4l6, &c. 900 to
an aggregate of approximately 81 $780,
OOO,oOO. Chairman Simmons of the
senate finance committee estimated
that the increase made by the con-
ferees would approach $275, 900 1000.
Profits Tax Modified.
The excess war profits tax, as agreed
70 by the conferees, Is a modification
of the enate bill, the principal
changes being in the maximum ana
minimum rates of exemption upon
which the tax is to be determined.
The mate graduated scale Of exemp-
lions ran from 6 to 10 per cent, while
the house exemption rate was 8 per
cent. The conferees adopted the grad
uated rate of from I to 8 per cent.
The definition of capital. which was
q point upon which the conferees ar
gued for days, was modified SO as 10
provide that the actual value of tangi-
BILE property paid into a corporation
VI pa I'LL snip vi lldl " uuollCoS
before January 1, 1914, shall be taken
as Of that date. The proviso as to
good will and other intangible prop
erty has been somewhat liberalized.
As to Invested Capital"
In calculating war excess profits the
terms invested capital" of corpora
lions and partnerships was declared
40 inalttIa 49, nfnal aach nni1 In actual
cash value and other tangible prop
erty paid for stock or shares at the
time of payment or January l, 1914,
but in no case to exceed the par value
of the original securities paid ia or
earned surplus and undivided profits
used or employed in the business, ex-
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 d.
good will trademarks, trade brands,
franchises ii for bone-fide pay
ment not to exceed the cash value.
Ii stipulates that such intangible
assets exchanged for securities before
March 3, 1917, not exceeding 20 per
cent of the total, shall be included at
a value not exceeding a fair cash
value at the time of purchase.
Postal Increases.
A fat increase on reading matter OF
II cent per pound until July !, 1919,
and "a cent thereafter was provided.
Aluarticinn nnnttnr avnaadinU x nor
cent of the total space would be taxed
from u to 2A cents additional until
July /, 1919, and from " TO Az cents
more until July l, 1920; and from Y
TO Ga cents 10 1921 ana from | cent
to 8 cent thereafter.
An additional tax of Is cent per
pound until July /. 1919, and Il cent
thereafter, on religious, agricultural,
fraternal and similar publications was
adopted.
The I cent tax on letters, excepting
drop letters and postal cards, was re-
stored by the conferees. A l cent ad-
ditional tax on postal and private
mailing cards was added. The fTSt-
class mail increases ere estimated TO
raise $4,000, 900, and are effective 80
days aretr the passage OF the act. The
senate provision ~exempting from post
age Letters written by soldiers and
sailors abroad was retained.
Railroad Tickets Hit-
The conferees levied s per cent in
lieu of the senate rate of 8 and the
house rate of 10 per cent on passenger
transportation, estimated to raise from
the compromise levy abouot 100000
700 instead of s3T. 800. 900. under the
senate plan. The 3 per cent tax on
freight transportation was retained
and the tax on express transportation
was increased so that ! cent would be
levied on each 20 cents paid instead
of each % cents. The house 10 per
cent a on Pullman accommodations,
cut to 3 per cent by the senate, was
restored and Is estimated to raise So
lOOO, 1000.
In lieu of the house 5 per cent
tax on sales Of automobiles by manu-
facturers and the senate federal
adopted a 3 per cent tax on all motor
vehicles, including trucks, payable by
manufacturers, producers and import
iers.
Taxes of 3 per cent Of manufacture
ers' ales of musical instruments and
dewelry also were written In, with q
tax Of Y cent a foot on motion pic
ture film.
New inheritance Tax.
a new system of graduated inheii-
tance taxes was written into the bill
In lieu of the house plan and despite
the senate's rejection of such taxes.
The new rates on inheritances, with
those of Americans in military service
exempted, range from one-hah Of !
per cent on 10000 estates to 10 per
sent on estates OF $10.0O0,e00 and
more.
The bulk ~ the increases q hetwccn
c260y00o0 40 and 13c0.Qo0Qoo made ~
.<