The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1917-10-04
War lax Starts At Cradle
Extends Beyond the Grave
Under Measure Agreed Upon

N4lS-rFETFF 3N.HatT @~-E
Washington. Oct 2lThe 5000. 100000
today in the House, catches almost
everybody from the cradle to the grave,
and for good measures, levies 9 rev
taxes on the heirs. s "a N
Baby's first dash of talcum powder.
unde the 2 per cent manufacturers
tax on cosmetics, help Uncle Sam carry
IN the war, and after death the federal
collectors will be on hand to get the IN
h%eritance tax, on advance on the pres
ent rate of from / per cent on $50, 900 TO
10 per cent on $1,000 COO. Between birth.
and death most of mans actiyitles
would be taxed. voting a proxy AT g
meeting Of cemetery association being
one of the few specifically exempted.
Excess Profits Pay a Part.
Those who have profited most by the
war, the recipients of enormous excess
war profits, will cay the most to help
carry it n Almost half the totai
amount of the bill or about $1,1lO, 0OO,-
900 is to be collected from hem.
The person who writes a. postal cara
will be caught, for cards will sell for
2 cents each by the provisions OF n
bill. Letters will be 8 cents. One will
be taxed when he goes to q moving
picture show, if the admission is over
5 cents, one-tenth of the cost of the
ticket. That rate will affect all who at
SSAAo
gallery to the n in the box. A host
of stamp taxes designed to raise $780,
600, 900 also will get h man with little
money in many ways. His greatest
consolation is that h consumption
taxes, which would nave made him pay
on coffee, tea and sugar were stricken
from the bill. The men Of moderate
means as we'll as the wealthy are at
fected by the income tax section. Nor
ma rates have doubled and exempttons
lowered to $1,000 for single persons, and
$4,000 for married ones Surfaces for
to SO per cent, the maximum ap-
plying to incomes over $1,000, geo. This
section is expected to raise $500, 0OO,0 600.
Included in the taxes imposed on the
manufacturers are levies of n quarter
of a cent a. foot on motion picture films;
2 per cent on the sale price Of chewing
gum and 3 e cent on automobiles,
musical instruments n jewelry.
= Evening drowning of ones troubles
in drink or sending them up in smoke
will cost more, for the ievies on all
kinds Of drink and tobacco soar.
The new rate on whisky is $2.10 per
gallon, and on beer $3.50 a barrel. Wine
taxes will be doubled and even grape
juice will be taxed a CEN a gallon.
A person cannot escape taxes by
travel, s per cent is assigned on pas
senger tickets and steamer tickets also
pay a tax.
The conference report provides that
the graduated tax of from 20 to 60 per
cent or excess profits of corporations,
partnerships and individuals shall be
levied on a basis Of invested capital
compared with invested capital Of three
pre-war years OF 1911, 1912 and 1918.
This. is a substitute for the Senate tax
es of from IL to GO per cent based upon
a similar comparison Of pre-war and
present profits. e3ey
The income tax section virtually was
unchanged, except for Encouragement Of
surtaxes on incomes between $4,000
and $4,000. The graduated surtaxes OF
from ! to SO per cent on incomes from
$4,000 to those of $1,000,O00 and over
were approved.
The Senate increase of from 2 to 4
per cent of the income tax on corpora
tons, joint stock companies and insur-
ance.cOmpanies was approved together
with the new normal Individual tax of
Q per cen on incomes OF unmarried
persons in excess Of $1,000 and Of mar
ried persons Of more than $4,000.
The War Profits Tax.
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 in excess over 20
and under rs per cent of capital; 45 per
CEN in excess over rs per cent and
under 33 per cent of capital, and a max
imum Of so per cent on profits in excess
of SO per cent of such capital.
In calculating war excess profits the
term Invested capital of corporations
and partnerships" 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 pay
ment on January 1, 1914, but in no case
to exceed the par value of the original
securities; paid i'll or earned SURPRISES
and undivided profits used or employed
in the business, exclusive OF undivided
profits earned during the taxable year.
Cash Value Allowances.
The allowances for intangible assets
include: actual cash value of patents
and copyrights paid in for stocks or
shares at the time OF payment, good
will, trade brands, franc hises, bona fide
payments not to exceed the cash value
1t stipulates that such intangible as
sets exchanged for securities before
March 3, 1917, not exceeding 20 per cent
of the total shall be included at a value
not exceeding u fair cash value at the
time Of purchase.
New Publishers Tax Plan.
In lieu of the House zone tax on sec
ond class publications, the conferees in
cluded a new zone system effective July
1, 1918, with different rates for reading
matter and advertising matter, with
special, but increased, rates for re-
ligfous. agricultural and other publica-
tons.
Arflat increase on reading matter of
" cent per pound until July /, 1919,
and X cent thereafter, was provided.
Advertising matter exceeding 5 per cent
of the total space would be taxed from
n to az cents additional July L, 1919,
and from " cent to AZ cents more un-
til July /, 1920, and from y cent to 6A