The Elk Mountain pilot., 1917-10-11


the war revenue bill completed their
draft after two weeks of deliberation.
As revised by the conferees the
measure has been raised from the levy
fixed by the senate of $2,416 SIC, 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 $275, 100000.
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-
tions 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
a point upon which the. conferees ar
gusd for days, was modified so as to
provide that the actual value of tangi-
BILE property paid into corporation
or partnership or individual business
before January l, 1914. shall be taken
as Of that date. The proviso as to
good will and other intangible prop
erty has been somewhat liberalized.
As to "Invested 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 l, 1914,
but in NC enzs 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
and copyrights paid in for stock or
shares at the time of payment =.
good will trademarks. trade brands.
franchises =. IL for bone-fide pay
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 at
a value not exceeding a fair cash
value at the time of purchase.
Postal lnersases.
A fiat increase on reading matter of
X cent per pound until July I. 1919.
and n cent thereafter was provided.
Advertising matter exceeding per
cent Of the total space would be taxed
from 4 to 2A cents additional until
July l, 1919. and from u to An cents
more until July l. 1920; and from 4
to OK cents to 1921 and from / cent
to 8 cents thereafter.
An additional tax Of Y cent per
pound until July 1, 1919. and X cent
thereafter, on religious, agricultural.
fraternal and similar publications was
adopted.
The cent tax on letters. 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 to
raise 5000, 900. and are effective 80
days afetr the passage Of the act. The
senate provision exempting from post
age Letters written by soldiers and
sailors abroad was retained.
Railroad Tickets Hit.
The conferees levied 8 per cent in
Lieu Of the senate rate Of and the
house rate Of 10 per cent on passenger
transportation. estimated to raise from
the compromise levy abouot sec, ,O0O.-
600 instead Of $87, soc, 600 under the
senate plan. The 8 per cent tax on
freight transportation was retained
and the tax on express transportation
was increased so that I cent would be
levied on each 20 cents paid instead
of each Is cents. The house 10 per
cent tax on Pullman Accommodations.
cut to per cent by the senate. was
restored and IL estimated to raise $5,-
900. 900.
In lieu Of the house 5 per cent
tax on sales II automobiles by manu-
facturers asd the senate federal
license tax IN owners. the conferees
adopted a 8 per cent tax on all motor
vehicles, including trucks, payable by
manufacturers, producers and import
ers.
Taxes of per cent Of manufactur-
ers' ales of musical Instruments and
jewelry also were written in. with a
tax Of Y cent foot on motion pic
ture fllm.
New Inheritance Tax.
A new system of graduated inherf-
lance taxes was written into the oill
u lieu of the house plan and despite
the senate's rejection o. such taxes.
The new rates on :nheritances, with
those of Americans In military service
exempted, range from one-half of l
per cent on $4,000 estates to 10 per
cent on estates Of .$1O.OOO,OOO and
more.
The bulk of the increases of between
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