The Harrison times., 1917-10-06

As revised by the conferees the
measure has been raised from the levy
fixed Nv the senate of S2,416,670OOO to
an aggregate of approximately S2,7OO,-
100000. Chairman Simmons Of the
Seaate finance committee estimated
that NE increase made by the con-
ferees would approach S275,OOOOOO
Profits lax Modified.
Ihe excess war profits tax, as agreed |
10 To- Me cOnferees, is a modification |
of the senate bill, the principal |
changes being in the maximum ana |
minimtwa rates Of exemption upon |
whiE& the tax is to be determined. |
The senate graduated scale of eXemp- |
lions an from to 10 per cent, while
the house exemption rate was s per
cent. 9Ge cOnferees adopted the grad
uated rate of from to Q per cent.
ffne definition of capital, which was
"a point upon which the conferees ar
gued for days, was modified so as to
pruyitAe that the actual value of tangi
bic Iseperty paid into corporation
or premiership or individual business
before January l, 1914, shall be taken
as Of that date. The provisO as to
good Win and other intangible prop
ery HAS been somewhat llberallzed.
As to "lnvested Capital"
IN calculating war excess profits the
terms "invested capital" of corpora
tions and partnerships was declared
TO iacsude actual cash paid in, actual
cash value and other tangible prop
erty paid for stock or shares at the
time OF payment or January l, 1914,
but IN nc case to exceed the par value
of the original securities paid in or
canned surplus and undivided profits
used 81 employed in the business, ex-
elusive of undivided profits earned dur
ing sse taxable year"
Hle allowance for intangible assets
ine'Etes actual cash &alue of patents
and copyrights paid In for stock or
shares at the time of payment =. =
good win trademarks, trade brands
frsslOkiseS D.. if for bOne-fide pay
ments ROt to exceed the cash value"
II stipulates that such intangible
assets exchanged for securities before !
March 8, 1917 not exceeding 20 per
cent OF the total shall be included at |
vaMe not exceeding fair cash
value at the time of purchase.
q Postal Increases.
A fiat increase on reading matter OF |
\ cent per pound until July l, 1919, |
sua VI cent thereafter was provided. |
Advertising matter exceeding 5 per |
cent OF the total space would be taxed |
from u to 2A cents additional until |
Juty 4. 1919, and from u TO 412 cents |
more wattl July l, 1920; and from X
TO 81 cents to 1921 and from / cent |
10 9 cents thereafter.
,sU additional tax of Is ceut per |
p0vad until July l. 1919, and 4 cent |
thereafter, on religious, agricultural, |
fraternM and similar publications was |
adopbea.
NE cent tax on letters excepting !
drop letters and postal cards, was re-
stored by the ConfereeS A l cent ad- |
diuond tax on postal and private
making cards was added. The first |
class mah increases are estimated to |
raise S90O0000O, and are effective 80 |
days afetr the passage of the act, The |
senate provision eXempting from post |
age teetters written by soldiers and |
saitors abroad was retained,
Railroad Tickets Hit.
Nae cOaferees levied per cent In |
Lieu of the senate rate of 3 and the |
hovge rate of 10 per cent on passenger !
transportation, estimated to raise from
the compromise levy abouot 100000, |
900 iastead of $37,500.0O0 under the
senate plan. The per cent tax on
freight transportation was retained
and he tax on express transportation
WAS mcreased so that cent would be
leyied ON each 20 cents paid instead
OF eaoh % cents. The house 10 per
cent tAx on PullHan accommodations,
cut TO per cent by The senate, was
restored aud is estimated to raise So
100000.
In heH Of the house 5 per cent
tax ca sales Of automobiles by manu-
facturers and the senate federal
license tux on owners, the conferees
adopted n per cent tax ON all motor
vehicles, Including trucks, payable 10y
manufacturers, producers and import
erS.
TaXes of per cent Of manufacture
ers' ules Of musical Instruments and
IeWelry also were written in, with
tax Of u cent foot on motion pic
tme finn.
New inheritance Tax
A rev system Of graduated inherl'
tanpe taxes was written into the bill
In heu of the house plan and despite
the senate's rejection Of such taxes.
The new rates on inhertances, 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 $10,000,000 and
more.
The bulk of the increases Of between
$2Ba, coo 900 aud $300000,000 made by