Tombstone epitaph., 1917-10-14

Washington.-The joint conferees on
the war revenue bill completed their
draft after two weeks Of elaboration.
As revised by the conferees the
measure has been raised from the levy
fixed by the senate Of $2.4l6,67O. 600 to
an aggregate Of approximately $2.7OO.-
100000. Chairman Simmons Of the
senate finance committee estimated
that the increase made by the con-
ferees would approach $2I5,OOO.0O
Profits Tax 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-
lions ran from 6 to 10 per cent, while
the house exemption rate was 8 per
cent The conferees adopted the grad
uated rate Of from Z to 8 per cent.
The definition of capital. which was
q point upon which the conferees ar
gued for days, was modified SO as to
provide that the actual value Of tangi-
BILE property paid into a corporation
or partnership or individual business
before January 1. 1914, shall be taken
~ Of that date. The proviso as to
good will and other intangible prop
erty has been somewhat liberalized.
A. to "Invsstsd Capital"
In calculating war excess profits the
terms Invested capital" Of corpora
lions and partnerships was declared
to include actual cash paid in. actual
cash value and other tangible prop
erty paid for stock or shares at the
time Of payment or January /. 1914,
but in NO case to exceed the par value
Of the original securities; paid in or
earned surplus and undivided profits
used or 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 in for stock OF
shares at the time Of payment
good will trademarks, trade brands
~ AoA PoS
ments not to exceed the cash value
1t stipulates that such intangible
assets exchanged for securities before
March 8. 1917. not exceeding 20 per
cent Of the total. shall be included al
q value not exceeding . fair cash
value at the time Of purchase.
Postal Increases
A nat increase on reading matter OF
\ cent per pound until July l. 1919
and y cent thereafter was provided
Advertising matter exceeding pei
cent Of the total space would be taxed
from y to IN cents additional until
July /, 1919. and from u 10 ~ cent?
more until July /. 1870: and from 4
to 6H cents to 1921 and from I cent
to cents thereafter.
An additional tax of y cent pei
pound until July l. 1919. and \ cen'
thereafter, on religious. agricultural
fraternal and similar publications wal
adopted.
The l cent tax on letter., excepting
drop letters and postal cards. was re
stored BY the conferees. A / cent ad
ditional tax on postal and private
mailing cards was added. The first
class mail increases are estimated 4
raise SOC, 600 900, and are effective 8
days afetr the passage Of the act. tn
senate provision exemptng from post
are Letters written BY soldiers ant
sailors abroad was retained.
Railroad Tickets Hit
The conferees levied 8 per cent II
Lieu of the senate rate Of 5 and tn
house rate Of 10 per cent on passenge
transportation. estimated to raise from
the compromise levy abouot 10000.
600 instead Of $37, 500O 600 under tn
senate plan. The s per cent tax OF
freight transportation was retainet
and the tax on express transportation
was increased so that cent would b.
levied on each 20 cents paid instea'
Of each Is cents. The house 10 pc
cent tax on Pullman Accommodations
cut to 5 per cent by the senate. wa
restored and il estimated to raise IS.
10000.
In lieu Of the house per cen
tax on sales Of automobiles by manu-
facturers and the senate fedora
license tax on owners. the conferee
adopted . 3 per cent tax on al motto
vehicles, including trucks. payable b,
manufacturers. producers and import
ers.
Taxes Of per cent of manufactur
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