The midland journal., 1917-10-12

Pipe lines .............. 4.5ooo0
Seats and berths ....... 2,250,o00
Telegraph and telephone
-~~-~~-~-~~~.~-~-e-~o~
facturers and the senate federal
license tax on owners, the cOnferees
adopted 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 Il cent foot On motion pic
ture film.
pc 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 1
per cent on $4,000 estates to 10 per
cent on estates of $1O,00O,O0O and
more.
The bulk of the increases Of between
$250O00,000 and $3O0,0O0,OO0 made by
the cOnferees in the senate bill was
secured from tine 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 sim
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 $4,000 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 $1,000
and less than $500; 2 per cent be-
tween $500 and $4,000; 8 per cent
between $4,000 and $12,500; per cent
between $12,500 and $4,000; per cent
between $4,000 and $4,000; per cent
between $4,000 and $4,000; 10 per
18 per cent between $4,000 and $780,
per cent between 100000 and $4,000;
19 per cent betwene $4,000 and $780,
900; % per cent between 100000 and
$15000O; % per cent between $15OOOO
and 100000; 80 per cent between
100000 and $250,OOO; 81 per cent be-
tween $250,000 and 100000; 81 per
cent between 100000 and $5OO,OOO;
40 per cent between $500, 900 and $780,
600; 45 per cent between $75OO00 and
$1,000,000, and so per cent on incomes
exceeding $1,O00.O0O.
Increased Tax on Whisky.
Increased senate rates on whisky
and beer were virtually retained, and
that on wines somewhat reduced. The
tax on distilled spirits was made $2.10
per gallon when for beverage use and
81 less for industrial purposes, esti-
mated to raise $135O00,000. The
amendment prohibiting importation of
distilled spirits for beverage use was
retained. Floor taxes to reach with
drawn liquors were approved. Beer
was taxed $1.50 per barrel additional,
to raise $46,000,000, an increase of %
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 5 to 20 cents instead of
from 3 to II cents a gallon were
adopted. Grape juice and other soft
drinks are taxed 1 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