The Pulaskian., 1917-10-05
CONGRESS MAKES LEVY AT S27 FOR EVERY MAN, WOMAN AND
 CHILD IN TIE UNITED STATES
Excess Profits Revenue at Bill on and Incomes at Nearly as Much Remain Practically Unchanged by Work of
 The COnereeS
Financing of the War System Graduating
 Q Be That Devised

tDe war revenue 0Hl competed tneF draft after two weeks of deliberatiOn.
 As revised by the eonferees the measnre has been raised from the levy fixed by the senate of $2,416,67000 to an aggregate of approximately $2,700,- 000O00. Chairman Simmons of the senate finance committee estimated tka6 tie increase made by the con- ferees would approach 275,000,000.
 Profits ax Modified.
 The excess war profits tax, as agreed to by the conferees, is a modification of the senate bill, the principal changes being in the maximum and minimum rates of exemption upon which the tax Is to be determined. The senate graduated scale of exemp- tt0uS ran from 6 to 10 per cent, while the house exemption rate was s per cent. The conferees adopted the grad ua&ed rate of from to 9 per cent.
 Tse definition of capital, which was a pOsnt upon which the conferees ar- gued for days, was modified so as to provide that the actual value of tangi- bie property paid into corporation or partnership or individual business before January 1, 1914, shall be taken as of that date. The provisO as to good will and other intangible prop ertW has been somewhat liberalized.
 As to "lnvested Capital"
 In calculating war excess profits the terms invested capital" of corpora tons aud partnerships was declared to include actual cash paid in, actual cash value and other tangible prop ertw paid for stock or shares at the time cf payment or January l, 1914, but fu no case to exceed the par value of isae original securities; paid in or earued surplus and undivided profits used CT 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 i'll for stock or shares at the time of payment good will trademarks, trade brands, franchises if for bone-fide pay meIas not to exceed the cash value"
 M stipulates that such intangible assets exchanged for securities before N&areh 3, 1917, not exceeding 20 per erent of the total, shall be included at a vaiwe not exceeding q fair cash value at the time of purchase.
 Postal Increases.
 A fad increase on reading matter of L cent per pound until July 1, 1919, and s2 cent thereafter was provided, Advertising matter exceeding 3 per cent of the total space would be taxed from A to 2A cents additional until July I. 1919. and from E to IA cents more untii July 1, 1920; and from X to 63i cents to 1921 and from 1 cent to 3 cents thereafter.
 An additional tax of IS cent per pound uatll July l. 1919, and A cent thereafter. on religious, agricultural, frasesmal and similar publications was adopted
 7he { cent tax on letters, excepting drop letters and postal cards, was re- stored bg the eonferees. A 1 cent ad- disisnaz tax on postal and private snaNiag cards was added. The first class naail increases are estimated to raise S90,000.00o. and are effective 30 daxs afetr the passage of the act. The senate provision exempting from post age leetters written by soldiers and saisers abroad was retained.
 Railroad Tickets Hit.
 Nxze conferees levied per cent In kteB M the senate rate of 0 and the hOUse rate of 10 per cent on passenger tfassnortation, estimated to raise from }he compromise levy ahouot $60000,- dDe lssstead of $37 100000 under the seTsate Rian The 3 per cent tax on freight transportation was retained assd isse tux on express transportation was increased so that 1 cent would be levied OH each 20 cents paid instead of eGosa p cents. The house 10 per cesM tux on Pullman accommodations, cut te per cent by the senate, was restored and is estimated to raise $5,- O00, GOO.
 1n lieu of the house 5 per cent tax on sales of automobiles by manu- facturers and the senate federal license tax on owners, the conferees adopted a 3 per cent tax on all motor vehicles. including trucks, payable by manufacturers, producers and import CTS.
 Taxes of per cent of manufacture CTS. ases of musical instruments and iewelry also were written in. with a tax of "A cent foot on motion pic. ture finn
 New inheritance Tax.
 4 new system of graduated inheri- tance taxes was written into the bill in lieu of the house plan and despite the senRte's rejection of such taxes The new rates on inheritanees, with those of Americans in military service exempted, range from one-half of per cent on $50,000 estates to 10 peI cent on estates of $10,000,00O and more
 The bulk of the increases of between $25o, o,O00 GOO aud $500. 100000 made by