The Butler weekly times., 1917-10-18

l " iOoyOOS) ~
100000 to 10000 .... a....u.....-. 2C
| 10000 to 100000 ..~..,.-........-... Is
| 100000 to 100000. ..,.,.......,,.. 4 l
10000 to 100000. o..--.-..,.-... ..,~.,-.. .l'
| 100000 to 100000. ........,.-.,. .......,... So
100000 to 100000. ....,.-..,... ....'...... a
10000 to 100000 .,.-.. sg
100000 to 100000 .......-............ 65
100000 to 1000, 900 ,....,~...-...... d
100000 and over.............. w 81
The method of using the table can
best be explained by a simple ex-
ample:
| II you are mari led. with no chill
dren, and have an income of $4,000,
you will pay no tax on $4,000, which
is exempt under the law, On the ST.
600 falling into the tax group $4,000
S. 900 you will pay per cent. or $40;
on the $1,000 falling into the tan
group $+,ooo-$5.ooo you will pay !
per cent, or $40; on the $1,000 falling
into the tax group $5,ooo$o,ooo yor
will pay 5 per cent, or $50. making a
total income tax of $I3o.
| Ii you have two children under IS
you have an exemption of 5000 for
each, so that you would pay no ia ,
on $4,000; , per cent on 81 600 be-
tween your s.. 400 exemption and ST.
900; ! per cent on $1,000 between ST.
900 and $1,000: ) per cent on $1,000
between $1,000 and 10000. making Il
total tax of $122
* & * 4 ** =
The excess profits tax is
1* complicated matter and bears y
practically no relation to the :
* earnings before the war. 1t is
really tax on large profits y
rather than on war" profits. *
Il * y 4 IS * IS
The excess profit tax is a more
complicated matter Every corpora
ton with net income exceeding $3,
600 and every partnership or individ
ual with net income derived fro':l
the operation of any kind OF business
which exceeds 10000 for the present
year is liable to pay tax on the
dIIlOuHl VI us SNNSSS pi olltH.
This includes everybody who buys
or sells anything. all kinds Of agents
and commission men. including COM
mercial travellers, unless they are on
a fixed salary without commissions.
According to an Eastern authority IT
also will include all kinds of proies-
sions, striking farmers. doctors. law.
yers, authors. real estate men and
everyone not on fixed wage or sal
ary and whose earnings are big
enough to come within the scope OF
the law.
* 4 *
* How to figure excess profits.
First. get two sharp lead pen
ellis.
*'* * * 81
Excess profits as now defined bear
practically no relation to the amount
earned before the war. If you want
rough idea of the excess profits OF
your business. take the amount by
which its net income for 1917 ex-
ceeds 8 per cent on the capital in
vested, and subtract 10000 from this
if you are operating partnership or
individual business. and $1,000 if you
are organized as corporation For
example. suppose your capital is $Io,-
600 and your net income is $4,000.
Eight per cent is $1,000, to which You
add $1,000 for corporation and So
for an individual or partnership, leav-
ing the excess profits $4,000 for cor
poration and $4,000 for an individual
or partnership business.
If you want to know exactly, you
will have to do some real figuring.
Here's how you 60 about it:
First determine the net income OF
your business for each of the years
1911, 1912 and 1913, by subtractins
from the gross amount of business
done in each of these years the prop
er deductions for expenses, interest,
taxes and depreciation. substantially
as described for income taxts, ex-
cept that you cannot deduct gifts and
charitable donations.
Average these and see what per-
centage they are of the actual capital
invested in the business during the
same three years. If they average
less than per cent you will be al
lowed the full , per cent; but if they
average more than 9 per cent You will
be allowed only 9 per cent. OILY If
they fall between ? and 9 per cent do
you take the actual average.
For example, with $1,000 of actual
capital, If the average net income Is