Daily capital journal. (Salem, Oregon) 1903-1919, 1917-08-06
Income Tax and War Profits
Two Great Sources Yield
ing $l,339, 100000
CORPORATION INCOMES
TO BE TAXED 6 PER CENT
Bank Checks, Certificates Of
Deposit and Such WiIl.Re-
quire One Cent Stamp

Washington, Aug. 6Senator Sim
mons, chairman of the finance commit
tee, today presented to the senate, the
committees report on the revenue bill
The measure as drawn will raise a
total of $2,006, 100000.
This is an increase of $139, ,970, 600
over the bill as passed by the house in
May. The additional revenue to- be
raised the first year under the bill is
to com from these sources.
Income tax $77T, 200, 900; war profits
$562, 100000; beer, wines, whiskey,
spirits, and soft drinks $2l8,000, 900.
Cigars, cigarettes and tobacco $56,600,-
900; freight, parcel post, express, pas-
senger, transportation, pipe lines, pull
man seats and berths and telegraph and
telephone messages $146, 100000.
Automobiles are to yield $4,000, 600
additional; sporting goods $500, 900;
perfumes and cosmetic 81 ,900, 900; pro
prietary medicines $9,400,00O; cameras
5000 900.
Playing cards and other stamp taxes
$4,000, 600; TEA, coffee, sugar and CO..
Goa, $4,000, 600; admissions TO movies
costing more than twenty five cents
and other amusement places ,O0O,-
600; first class matter $50, ,000, ,0O0; sec
ond class $3, ,000, 900 and profit tax ON
newspapers Of ~, 500, coo.
increase stamp Taxes
The beer tax will be 80 q barrel
an increase Of twenty five cents o bar
rel over the tax proposed by the house;
distilled spirits $2.10; dry wines, eight
cents gallon, liquors, eordiais, and
still wines $1.l0 per proof gallon; cham
pagne nine cents q half pint, three
times the present rate.
Soft drinks range from three eents-a
gallon on products sold at $l.S5 gar
Ion. to twelve cents when sold for more
than $4 a gallon. The house tax Or
eight cents per pound on caTbonie aeld
gas was reduced to five cents q pound
Chautauaua lectures, because Of their
educational value, are left tax free.
A large number Of additions are made
in stamp taxes, every bank check, dTaft
and certificate of deposit drawing no
interest recurring a one cent stamp.
The largest increase aimed at-$fff,-
7of 0OO in income taxes-is to be ae-
complished by increasing the corpora
tion income tax, making the total SIX
nereent instead of two percent as no"
and an lnCfease VI pOASoNo -
;dnal incomes of over $4,000 year.
Liberal Exemptions
The largest increase next is IN war
profits taxes-$562, 900, ,000-to be rals-
cd by imposition of a war profits tax,
instead Of the excess profits taxes, pro
posed in the house bill. In general It
would make the basis Of the tax the
difference between the profits OF the
pre.war period and the profits OF the
taxable year, thus taking by taxation,
the large part of the extra gains which
the war itself has caused.
This war profits tax does not apply
70 any business or individual whose
net income is less. than $4,000 q year
and both are given flat exemption
of $4,000 war profits.
Amendments to the present income
tax law proposed by the bill includes;
Exemption of an additional 5000 Tor
each dependent child under Is, IN fix
ing the net taxable income of the head
of the family.
Crediting Of war profits taxes against
the income to be taxed
Requiring brokers to make returns
showing profits made by their custom
ers. so that the government may cheek
income tax returns.
Introducing the report Of his COM
mittee, Senator Simmons said he ex-
poets to call it up for action on Wed
naedav