Clearwater Republican. [volume] (Orofino, Idaho) 1912-1922, 1917-10-05
EVERYBODY TAXED
BY NEW WAR BILL
EXCESS WAR PROFITS ARE TO
BEAR $1,000, ooo, 900 OF
THE BURDEN.
LARGE INCOMES HARD HIT
Reading Matter, Music, Cameras,
Shows, Inheritances, Autos in
the List-SaIes on Produce
Exchange, Tickets, Notes.

Washington.-An agreement on
the $2.7O0,OOO,OO0 war tax bill was
reached Saturday by the senate and
house conferees and the report pre-
sented to the house Oct. 1.
Levies of approximately $1,000
100000 on war excess profits and
$4,000 on incomes were left un-
changed, but new system of cal
culating excess profits was adopted
The conference report provides
that the graduated tax of from 20
to 60 per cent on excess profits of
corporations. partnerships and indi-
viduals shall be levied on basis of
invested capital compared with in
vested capital of the three pre-war
years Of 1911, 1913, and 1913. This
is substitute for the senate taxes
of from 16 to 60 per cent, based up
on similar comparison of pre-war
and present profits
Income Tax Section Stands.
The income tax section virtually
was agreed on, except for reearange-
ment or surtaxs on incomes be-
tween $4,000 and $4,000. The grad
uated surtaxes of from / to SO per
cent on incomes from $4,000 to those
of $1,O00,000 and over were ap-
proved.
The senate increase of from to
per cent of the income tax on
corporations, joint stock companies
and insurance companies was ap-
proved.
The graduated excess profits rates
are 20 per cent of the excess profits
not in ecexss Of Is per cent of the
| invested capital for the taxable
year; Is per cent on profits in ex-
cess of Is per cent and not over 20
per cent of such capital; 35 per
cent on excess over 20 and under 25
per cent of capital As per cent on
excess over Is per cent and under
80 per cent of capital, and a maxi
mum of 60 per cent on profits in
excess of 33 per cent of such capital.
Actual Values.
! In calculating war excess profits
the term INFESTED capital of cor
porations and partnerships" was de-
clared to include actual cash paid,
actual cash value of other tangi-
BILE property paid for stock or shares,
at the time Of payment or before
January 1, 1914, but in no case to
exceed the par value of the original
securities. paid-in or earned sur
plus and undivided profits used or
employed in the business, exclusive
Of undivided profits earned during
the taxable year.
The allowances for intangible as
sets include actual cash value of
patents and copyrights paid in for
stocks or shares at the time Of pay
ment good will, trademarks,
brands, franchises If for bona
fide payments, not to exceed the
cash value"
1t stipulates that such intangible
assets exchanged for securities be-
fore March 3, 1917, not exceeding
20 per cent of the total, shall be in
cluded at value not exceeding a
fair cash value at the time of the
purchase.
Flat Increases.
| A flat increase in reading matter
Of quarter Of cent per pound un.
til July 1, 1919, and one-half cent
thereafter was provided. Advertis.
ing matter exceeding s per cent Of
the total space would be taxed from
IA to Q IA cents additional until
July 1, 1919, and from IL to IL
cents more until July 1, 1920; and
from ga cent to "a cents to 1921
and from 1 cent to cents there.
after.
The conferees levied per cent
in lieu of the senate rate of s and
the house rate of 10 per cent on
passenger transportation, estimated
to raise from the compromise levy
about $60,000,000 instead of $751;
OO0, 900 under2 the senate plan. The
8 per cent tax on freight transporta.
ton was retained and the tax on ex
press transportation was increased
that SO 1 cent would be paid on
each 20 cents paid instead of each
rs cents. The house 10 per cent tax
on Pullman accommodations, cut
to 5 per cent by the senate, was re-
stored and is estimated to raise
100000
An additional tax of 1-S cent pei
pound until July /, 1919, and IA cent
thereafter on religious, agricultural
fraternal and similar publications
was adopted.
/ The 1-cent tax on letters, except
ing drop letters and postal cards, was
stored to the conferees. 1t is esti
mated to raise about $4,000 900 and
is effective 30 days after the pas.
sage of the act. The senate pro.
vision exempting from postage let.
tiers written by soldiers and sailors
abroad was retained.
Pay on Automobiles.
In lieu of the house tax on sales
of automobiles by manufacturers and
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