South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-09-30
WAR TAX BILL.
IN SHAPE FOR.
VOTE IN HOUSE.
Measure Providing for ST.
700,000,000 Revenue
Finally Agreed On by
COnfereeS.
Associated Press Service

Associated Press Service
WASHINGTON, Sept 2s.-Final
agreement on the $2.7OO.OOO war
tax oil was reached today by the
senate and house conferees and the
report will be presented to the
house Monday. Levies of approx
mately 5000. 600 on war excess
profits and $S42,OO0.OOO on incomes
were left unchanged, but a new sys-
tenn OF calculating excess profits
was adopted.
The conference report provides
that the graduate tax Of from 90 10
so percent on excess profits Of cor
poratiOns, 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. 1912 and 1913. This
Is a substitute for the senate taxes
of from Il to so percent based up
ON similar comparison OF pre-war
and present profits.
The income tax section virtually
was unchanged. except for rear
Tangement of sur-taxes on incomes
between $4,000 and $4,000. The
graduated sUr-taxes of from 1 to so
percent on incomes from $4,000 to
those OF million dollars and over
were approved.
The senate increase of from two
to four percent of the income tax
on corporations. joint stock compa-
MES and insurance companies was
approved together with the new
normal individual tax Of two per
cent on incomes Of unmarried per
Sons in excess OF $1,000 and of mar
ried persons OF more than $4,000.
Excess Profits Rates.
The graduated excess profits rates
are 20 percent Of excess profits not
in excess of Is percent Of the invest
cd capital for the taxable year; 25
percent on profits in excess of Is
percent and not over 90 percent of
such capital; IS percent on excess
over 20 and under % percent OF
capital; As percent on excess over
20 percent and under 81 percent of
capital and a maximum of 60 per
cent on profits in excess of SO per
cent OF such capital,
I'm calculating war excess profits
the term invested capital" of cor
poratiOns and partnerships was de-
slared TO include actual cash paid
in. actual cash value OF other tangi-
ble property paid for stock or
shores. at the time of payment. or
Jan. T.. 1914. but i'm no case 10 eX-
,eed the par .alue of the oriEina!
securities. paid i'm or earned surplus
and undivided profits used or en-
pIoyed i'm 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 az the time of pay
lnent good will. trade marks,
trade brands. franchises if for
bona nde payments not TO exceed
the cash value"
Il stipulatas that such intangible
assets exchanged for securities he
fore March so. 1917. not exceeding
20 percent OF the total shall he in
Guided at a value not exceeding a
fair cash value az the time of pur-
chase.
New Zone Postal Tax.
In lieu of the house zone tax on
second class publications the con-
ferees included a new zone system
effective July 1. I91N, with different
rates for reading matter and adj
vertising matter with special. but
increased rates for religious, agri-
cultural and other publications.
4 fiat increase on reading matter
az Ia cent per pound until July 1,
1919 and 10 cent thereafter was
provided. Advertising matter exceed
ing five percent of the total space
would be taxed from Is Co IA
cents additional until july I. 1918
and from ID cent 20 10 cents
more until July 1 1920. and from
ga cents to S-4 cents Co 1921. and
from one cent 10 nine cents there