Mexico Missouri message., 1917-10-11

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facturers and the senate federal
license tax on owners, the conferees
adopted a per cent tax on all motor
vehicles, including trucks, payable by
manufacturers, producers and import
ers.
Taxes of 8 per cent of manufactur-
ers' ales of musical instruments and
jewelry also were written in, with a
tax Of X cent foot Un motion pic
ture film.
New Inheritance Tax.
A new system of graduated inheri-
tance taxes was written into the bill
in lieu Of the house plan and despite
the senate's rejection of such taxes.
The new rates on inheritances, with
those Of Americans in military service
exempted, range from one-half of
per cent on $4,000 estates to 10 per
cent on estates Of $10,000,OO0 and
| more.
The bulk of the increases of between
S250,000,000 and $30000O,0O0 made by
the conferees In the senate bill was
secured from the postage, public utili-
ties and manufacturing sales section
and the new inheritance taxes.
With but few exceptions, the new
taxes are effective with the passage of
the act.
Senate Version Stands.
The income tax section was adopted
virtually as written by the senate. The
new 2 per cent normal tax on incomes
Of more than $1,000 for married per-
sons and $1,000 for single persons Is
In addition to the present law exempt
ing incomes of less than $1,000 for sin
gle persons and $4,000 for married per-
sons. Thus those between the new low
exemption bases and the present ex-
emptions will pay only the 2 per cent
tax, but single persons having an in
come of $1,000 or more and married
persons whose income is $4,000 or more
would pay the full 4 per cent normal
tax.
The senate income provision allow
ing an additional exemption of 5000
for each dependent child to heads of
families subject to the present law was
retained. The exemption for children,
however, does not apply to those sub
ject to the new reduced taxes with the
$1,000 and $1,000 exemptions, respec-
lively, for married and single per-
sons.
Surtax Is Agreed Upon.
Surtaxes were agreed upon as fol-
lows:
One per cent on income over $4,000
and less than $500; 2 per cent be.
tween $500 and $4,000; 8 per cent
between $4,000 and $12,50O; per cent
between $12,5 500 and $4,000; 5 per cent
between $4,000 and $4,000; 7 per cent
between $4,000 and $4,000; 10 pei
18 per cent between $4,000 and $780,
per cent between 100000 and $4,000
IS per cent betwene $4,000 and $780,
600; % per cent between 100000 and
$150,000; 25 per cent between $15000C
and 100000; 80 per cent between
100000 and $250,000; "a per cent be
tween $250000 and 100000; 81 pei
cent between 100000 and $5OOOO0
40 per cent between 100000 and $3.50,
| WV pCl SCll DClRtch duI
$1,000,000, and 80 per Sent on incomes
exceeding $1,000.OO0.
increased Tax on Whisky.
Increased senate rates on whisky
and beer were virtually retained, anG
that on wines somewhat reduced. The
tax on distilled spirits was made So
per gallon when for beverage use anC
81 less for industrial purposes, esti
mated to raise $135,000,000. The
amendment prohibiting importation Of
distilled spirits for beverage use was
retained. Floor taxes to reach with
drawn liquors were approved. Beel
was taxed $1.50 per barrel additional
to raise $46,000,000, an increase of q
cents per barrel over the house rate.
Present wine taxes were doubled.
Taxes on nOnalcOholic beverages
were compromised. On prepared
sirups and extracts the taxes gradu
ated from 8 to 20 cents instead OF
from 3 to IL cents a gallon were
adopted. Grape juice and other soft
drinks are taxed cent per gallon, as
provided by the senate in reducing the
original 2-cent rate of the house.
Senate rates on cigars and cigarettes
were retained, but those on snuff were