The Watertown news. [volume] (Watertown, Wis.) 1917-1919, 1917-10-01
income TAX RATES
IN BIG WAR TAX BILL


The senate 2 per cent manufactur-
ers' sales taxes on perfumes and pat
ent medicines was retained.
The senate 1-cent stamp tax on
bank checks was not restored but its
tax of 1 cent on parcel post packages
costing 25 cents or more was retained.
Other stamp taxes, all made effective
December 1. were retained and the
house tax on indemnity bonds re-
stored.
New Inheritance Tax.
The new rates on inheritances, 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,0OO,OOO and
more.
The bulk Of the increases Of be-
tween 100000 and $3OO,OO0,OOO
made by the conferees In the senate
bill was secured from the postage,
public utilities 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 In
comes of more than $1,000 for married
persons and $1,000 for single persons
Is in addition to the present law eX-
emptlng incomes of less than $4,000
for single persons and $4,000 for mar
ried persons. Thus those between the
new low exemption bases and the
present exemptions will pay only the
per cent tax, but single persons hav-
ing an income of $4,000 or more and
married persons whose income is $4,
600 or more would pay the full 4 per
cent normal tax.
Surtax Is Agreed Upon.
Surtaxes were agreed upon as fol-
lows:
One per cent on incomes over $5,-
600 and less than $500; per cent
between $500 and $4,000; per cent
between $4,000 and S12,5OO; per
cent between $12,5OO and $1,000; 5
per cent between $4,000 and $4,000;
per cent between $4,000 and S4O,-
900; TO- per cent between $4,000 and
$6O,0OO IA per cent between 100000
and $4,000; 1S per cent between $780,
600 and 100000; % per cent between
100000 and S15O,OOO; 25 per cent be-
tween $150,OOO and S2OO,OOO 80 per
cent between 100000 and S25OOOO;
"a per cent between $25O,0 and $780,
900; 81 per cent between 100000 and
OO,0OO; 40 per cent between $780,
600 and $75O,O0O; 40 per cent between
$750,00O and $1,00O,O0O, and so per
cent on incomes exceeding S1,OOO,OO0.
Messages to Pay.
House and senate provisions for
tax Of cents each on telegraph, tele-
phone and radio messages costing 15
cents or more and designed to raise
$1,000, 900 were retained, but the house
tax on gas, electric and telephone serv-
ice was eliminated.
Taxes on life insurance, eliminated
from the house bill in the senate, were
amended and reinserted, raising about
$5,0OO,OOO.
Amusement taxes agreed upon pro-
vide tax rate of 1 cent on each 10
cents or fraction thereof of the admis-
sion charge. Nickel theaters and
shows, rides and other outdoor park
amusements with maximum admis-
sion of 10 cents and benefit entertain
ments and agricultural fairs were ex-
empted.
After November L, 1917, members of
all clubs, except fraternal orders, pay
ing more than $12 annual dues would
be subject to a 10 per cent tax.
Increased senate rates on whisky
and beer were virtually retained and
that on wines somewhat reduced. The
tax on distilled spirits was made S21O
per gallon when for beverage use and
81 less for industrial purposes, esti-
| mated to raise S125, 100000. The
amendment prohibiting importation of
distilled spirits for beverage use was
retained
Floor taxes to reach withdrawn Ii
Quors were approved. Beer was taxed
$3.50 per barrel additional, to raise
$4,000, 900, an increase of 25 cents per
barrel over the house rate. Present
wine taxes were doubled.
Taxes on nonalcoholic beverages
were compromised.
Senate rates on cigars and cigarettes
we're retained, but those on snuff were
increased from 4 cents to 5 cents a
pound.