Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-10-16

ceeQS OF business where uO CaplIoA -
This s per cent war excess
profits tax will have the effect or
practically doubling the tax on IN
comes ranging from $4,000 upward
and in causing much discussion in
financial circles, the consensus OF
opinion being that this section OF the
new law will be repealed at the next
session of congress. Many members
of congress have already declared
that the section was included in the
act as a compromise to reach an
agreement between the house and
senate at the time the war revenue
bill was in process of formulation
and that the full significance of the
paragraph was not realized at the
time of its adoption.
For all practical purposes, how
ever, this per cent additional tax
is effective and must be taken into
consideration in computing the
revenue to be derived from the in
come tax measure.
As a concrete example of the
operation a.. the new income tax
law, take al income of $4,000 per
year derived by a married taxpayer
or head of a family. Under the
old law, there would be no income
taxation, while under the old law.
a tax of 2 per cent is levied on the
excess of $4,000, which in this case
is $1,000, making it necessary for
the individual to pay tax of $40.
Unmarried individuals with in
comes in excess of 81 900 are sub
ject to the same provisions, with ad-
ditional graduated taxes according
to the amount in excess of the stipu-
lated 1000 exemption.
There are plenty of negro work
men in Atlanta who will have to
make income tax returns under the
new law" declared a prominent At
lanta contractor the other day
while discussing the operation of the
statute. A surprising statement, but
undoubtedly true in many instances,
while the number of white residents
of Atlanta who will be obliged to
contribute to the nations treasury
by the operation of the income tax
law will amount to almost half the
city's population.
PEOPLE SHOULDER BURDEN.
Comparatively few people realize the
situation as created by the new income
tax law" declared b. II. Collins, man.
ager of the Atlanta branch of the Ma
tional City company, Of New York, as
l. rin
the law Saturday.
ut means that the American people
who have not known what il is to meet
taxation demands from the government
will begin to shoulder a little of the
responsibility which they rightly should
bear not only in times of peace, but
particularly in war" he continued.
Perhaps by March /, when the income
tax returns must be made, the per cent
clause of the law will have been re-
pealed. but were the returns to be made
now, individuals with incomes in excess
of $4,000 would find themselves pay
ing almost double what they are called
upon to pay under the other sections of
the act"
Let me give you a typical example
of the operation of the tax on a net
income of $4,000 per year" said Mr..
Collins Here are the figures"
Normal tax:
Present, 2 per cent of $4,000. ..$ 100
War, 2 per cent of $4,000. .. 16O
SurtaX:
1 per cent on amount by which
$500 exceeds $1,000. or l per
cent on $4,000. ................S 20
2 per cent on amount by which
$4,000 exceeds $500, or per
per cent of $4,000. 90
Total . q.
collector of Internal Revenue a. o
Rlalock pointed out that while the fore
goin gtable is correctly figured, it does
not take into consideration the addition
al S per cent-the so called joker clause
which would bring the total up to
S6272O on $4,000 income)
Liberty Loan bonds are the only rev.
enue-producing securities exempt from
taxation. and these to the amount OF
$4,000 held in the name of any one in
dividual," said Mr.. Collins The bonds
are also free from state, county and mu-
nicipal taxes.
"Any member or all members of a
family NAV hold $4,000 worth of Lib
erty bonds individually without paying
income tax thereon. and the sale of
these securities should be UNNECESSARILY
facilitated on account of this fact, to
saw nothing of the patriotic incentive to
do ones share in financing the nation
in this time of stress" he concluded.
In addition to the income tax feature
of the war revenue act, many other
sources of revenue are opened through
the operation of special levies made
upon all kinds of products such as to-
bacco. perfumes, commercial alcohol
etc. This tax became effective October
4.
A tax Is laid on cigars ranging from
% cents to 81 per thousand, while on
syrups for soft drinks the tax ranges
from cents to 81 per gallon. Cigar
cite papers are not exempt, being taxed
from One-half cent to / cent per book
Motorcycles. automobiles, express
shipments. mileage books and cash fares
on railroads. freight shipments, moving
picture films, jewelry, sporting goods