New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-30
Levy on Profits Is
Five Times Greater
Total To Be Raised
Is $2,606, ,32O, 900 in
One Year; End of
Five.Month Struggle
Especial Corre,pondenoel

VI appE0AiHntciy f~'oV",osV'"NV so"'
in addition to the ordinary revenues Of
the government was agreed to by the
conferrees and reported to the House
tonight.
II will be taken up in the House on
Monday and in the Senate probably on
Tuesday, with the chances fsvoring II
being signed by the President and be-
coming a law during the week.
As the bill stands it is larger than
the bill passed either by the House or
Senate. Few decreases were made in
any schedules Of the bill by the con-
ferrees, and in most cases the provis-
ion of the House proposing the higher
rate was accepted by the conferrees.
The largest addition to the bill was
in the war profits tax, which was com
pletely rewritten by the conference
committee, and all the schedules
changed, IL being estimated that this
item alone will raise sl,i10,000,ooo a
year in taxes. The House had pro
vided a war profits tax Of only $500
100000. but the Senate raised this
figure to $1,000, 100000, adding $780,
100000 to the tax BY the changes
made.
Several Hundred Changes Made
The bill has been in the process OF
formation for nearly FIVE months. de-
spite the fact that it was originally
intended to pass it by July !. 1t has
been in conference for nearly two
weeks, during which time several hun
dred changes were made in the bill.
much Of the verbiage being rewritten
and many Of the schedules being
altered.
The income tax section virtually was
unchanged, except for rearrsngements
of surtaxes on incomes between Sl5.-
006 and $4,000. The graduated sur
taxes of from to 80 per cent on in
comes from $4,000 to those of $1,000
| 900 and over were approved.
The Senate increase of from 10 :
! per cent Of the income tax on cor
! insurance companies was approved, to-
/ gether with the new normal individual
! tax of per cen. on incomes of unmsr-
ried persons in excess Of $1,000 and OF
married persons Of more than $1,000.
The graduated excess profits rates
! are 90 per cent of excess profits no:
/ in excess Of 10 per cent of the invested
capital for the taxable year: % per
IN n
and not over 90 per cert of such cspi-
! tai; 35 per cent on excess over 20 and
I under % per cent of capital; IS per
cent on over % per cent and under 3S
/ per cent Of capital, and maximum Of
| so per cent on profits in excess OF 81
/ per cent of such capital.
/ Calculating Excess Profits
In calculating war excess profits, the
/ term Invested capital of corporations
I and partnership was declared TO in
clude actual cash paid in. actual cash
/ value of other tangible property paid
| for stock or shares, at the time OF
payment, or January I, 1914, but IN
/ no case 70 exceed the par value OF the
original securities; paid in or earned
surplus and undivided profits used or
employed in the business exclusive OF
! undivided profits earned during the
taxable year.
The allowances for intangible assets
include actual cash value of patents
and copyrights paid in for stocks OF
shares at the time OF payment
good will, trademarks, trade brands.
( franchises, II Tor bona hos
payments not to exceed the cash value.
Il stipulates that such intangible as
o. fnG haf
March 3, 1917. not exceeding 20 per
cent of the total, shall be included az
a yaluo not exceeding far cash value
at the time of purchase.
In lieu OF the House zone tax on
second class publications the conferrees
included a new zone system. effective
July /. 1918. with different rates FOR
reading matter and advertising matter
with special. but increased rates for
religious. agricultural and other pub
licstions.
A hat increase on reading matter oi
one Quarter Of a cent pound untii
july 1. 1919. and one-half of cent
thereafter was provided Advertising
matter exceeding per cent Of the totsl
space would be taxed from q to "a
cents additional until July I. 1919. anc
from y 20 AZ cents more until July
1920. ard from 2 TO 6& cents to ls2l
and from | cent 20 9 cents thereafter.
Many Publications Affected
An additional tax Of one-eighth cen
per pound until July I, 1919, and one
quarter cent thereafter on rehgious
agricultural, fraternal and similar pub
lications was adopted.
The one cent tax on letters eheep
drop letters, was restored by the con
ferrees. A one cent additional tax or
postal and private mailing cards wa
added. The first class mai, increase
are estimated TO raise s90,0o0,ooo sp'
are effective thirty davs after the pas
sage Of the act. The Senate provision
exempting from postage letters writer
By soldiers and sailors abroad Was re
tanned.
y The conferrees levied 8 per esnt IL
lieu Of the Senate rata Of 8 and tn