New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1917-12-31

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tax-sathering machine expect to elm
inate the usual grudging spirit OF tax,
payers. They have called this a LIB
erty Tax" because Its proceeds go to
the same war cause as the Liberty
Bond issues. and every effort will be
made to encourage the spirit Of WILL
Ing giving among those on whom the
tax falls.
About 100000 parsons will pay
income taxes, It Is estimated, ana
most will be subject to = direct fed
eral tax for the first time. tor less than
100000 paid income taxes last year
under the old law. Tax return forms
have been made az simple ~ possible,
those for incomes Of less than $1,000
being especially free from technical
features or inQuisitorial items.
Corporations will pay income taxes
also. but on a different basis. Their
net income IL subject to = tax Of 6 per
cent under the new war revenue act.
and certain technical deductions are
allowed. Corporation returns are due
between January 1 and March ! for
the calendar year 1917. and companies
operating on a fiscal year basis must
report within so days after the end Of
the fiscal year.
Beginning tomorrow, also, excess
profits returns for the year 1917 will
be received from corporations, part
nerships and individuals. The last
date for the filing Of these Is March /,
tho same as on income returns, and
payment must be made also before
June is, except under the fiscal year
arrangement. e&
individuals making more than
$4,000 during the year also are subject
to an s per cent. tax on their income
above that amount, independent Of the
regular irscome taxes. This s per cent.
levy is imposed on individuals with no
capital. or with only nominal capital,
such as professional mon with money
invested In books, dentists and physi-
clans instruments. or other equip
ment. ~.s'
Another kind Of tax Is laid on ex-
cess profits Of business having invest
cd capital. On this basis, taxes on net
incomes or profits in excess Of certain
deductions are at the rate OF 20 per
cent OF tho amount Of net income in
excess Of the deduction and not in ex-
cess Of Is per cent. on the invested
capital: 25 per cent. on the amount
In excess of Is per cent. and not in
excess OF 20 per cent; 36 per cent. on
the amount in excess Of 90 per cent
and not In excess OF rs per cent; 40
per cent. on the amount In excess OF
as per cent. and not in excess OF 33
per cent. and so per cent. ON the
amount in excess Of 80 per cent,
Before q tax II levied on excess
profits for 1917. . business Is per-
mitted to make the same percentage
Of profit on its invested capital that it
made on ith invested capital during
1911, 1912 ana 1918, the so-called
''pre-war" period. providing this Is not
more than nine per cent. and $4,000
additional for q corporation or $1,000
for . partnership or individual. These
are the deductions which are not tax
able.
Definitions of terms. particularly
the items making up Invested capt.
tai," have been made in a number OF
recent regulations issued by Commits
sioner Roper.
Excess profits taxes and income
taxes may be imposed on the same
earnings, II they ara sufficiently high.
The law specifies. however. that the
amount of tax payable under the ex-
cess profits provision may be deducted
from gross income before determining
the net income on which income taxes
are paid.