Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1917-10-02
EVERYBODY TAXED
BY NEW WAR BILL
EXCESS WAR PROFITS ARE TO
BEAR 100000 900 OF
THE BURDEN.
LARGE INCOMES HARD HIT
Shows, lnheritances, Autos in
The List-Sales on Product
Exchange, Tickets, Notes.

Exchange, Tickets, Notes.
Washington.-An agreement on
the $2,7OO,OOO,OOO 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 I'M
changed, but a new system of cal
culating excess profits was adopted.
The conference report provides
that the graduated tax of from 20
to so per cent on excess profits of
corporations, partnerships and indi-
viduals shall be levied on a 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 a 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 surtaesx on incomes be-
tween $4,000 and $4,000 The grad
uated surtaxes of from 1 to so per
cent on incomes from $4,000 to those
of $1,000.000 and over were APP
proved.
The senate increase of from 2 to
per cent of the income tax on
corporations, joint stock companies
and insurance companies was APP
proved
The graduated excess profits rates
are 20 per cent of the ecessx profits
not in ecexss of Is per cent of the
invested capital for the taxable
year; % 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 %
per cent of capital As per cent on
excess over 25 per cent and under
33 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.
calculating war excess profits
the term invested 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 shores
at the time of payment or before
January l, 1914 but in no case to
exceed the par value of the original
securities. paid-in or earned sur
plus and undivided profits used OF
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 a cent per pound un-
til July I, 1919. and one-half cent
thereafter was provided. Advertis-
ing matter exceeding per cent of
the total space would be taxed from
IA to IA cents additional until
July 1, 1919, and from IL to 4 IL
cents more until July1, 1920; and
from "a cent to "a cents to 1921,
and from l cent to cents there
after.
The conferees levied 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
about $60.000000 instead of $751;
100000 under the senate plan. The
per cent tax on freight transporta-
ton was retained and the tax on ex-
press transportation was increased
that so l cent would be paid on
each 20 cents paid instead of each
25 cents. The house 10 per cent tax
on Pullman accommodations, cut
to per cent by the senate, was re-
stored and is estimated to raise
5000 900.
Anadditional tax of Is cent per
pound until July1. 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 S70.000,000 and
is effective 80 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