Arizona republican., 1917-10-20
DIGEST IF REVENUE BILL L0F ], LAST CONGRESS SHOWS JUST
 / HOW TAX WILL LBE COLLECTED

period or that the rate of average in come was low as compared with simi- lar businesses, the income of repre- sentative business of the kind might be taken as a basis for assessing taxes
 Net income in 1911 and 1912 would be ascertained according to the cor poration tax law of 1909 and for 1913 according to the income tax law or 1919, but including income taxes paid during the year and deducting amount received as dividends from other cor porations. Net incomes for the tax able year would be ascertained accord ing to the law of September, 1915. h. vested capital for the purposes of the tax would not include stocks or bonds, except obligations of the United states, nor money or other property borrowed. In the case of corporation It would include actual cash paid in, cash value of tangibles represented by shares Of stOck,-if acquired prior to January l, 1914. then as of their value at that date but not to exceed par value, and sur plus and undivided profits used or em- ployed in the business except those earned during the taxable year. Pat ents and copyrights paid for in stock might be included as invested capital but not at a figure to exceed their par value at the time of acquisition; good will. trademarks, brands, franchises and other tangibles might be included if paid for in cash, at an amount not greater than the sum paid for them originally. When acquired prior to March 3. 1917. and represented by stock they might not represent more than 20 per cent of the invested capital. In the case of an individual invested capi- tai would represent actual cash paid in, actual cash value of tangible prop erty other than cash, cash value of patents, copyrights, goodwill, etc, as of the time acquired.
 If d business existent during the pre- war period has since been reorganized, but is substantially a continuation, it will use for arriving at deductions the pre-war capital and earnings of the former business. In cases of reorgani- zaton, consolidation or changes of ownership since March B 1917, involv- ing a transfer of less than 90 per cent of ownership it would be forbidden to transfer assets at a vlue greater than would be allowed under the definitions in this title, except when actually paid for in cash. A business with no in- vested capital. or with nominal capital would pay per cent of current earn ings after a deduction of $3000 if a domestic corporation and $6o00 if a citizen, resident, or domestic partner ship.
 The tax on manufacturers of muni- tions as defined in section 30l of the act of September 8, 1916, would be re- duced to 10 per cent. The 10 per cent tax would cease to be effective aftel January l, l91S The eXcess-p profits tax of March 3, 1917, is repealed.
 Porto Rico and Philippines
 The provisions of the bill regarding income tax do not apply to Porto Rico or the Philippines but the legislature. of these islands are authorized to dea with their income tax laws.
 Beverages
 Effective upon the enactment of thu bill the following taxes are provided additional as to articles already taxed -on distilled spirits held in bond or b, retailers in eXces of 50 gallons, $1.1i per gallon,-S2.10 if used for beverag purposes or in the manufacture O articles intended for beverage purposes with an addition tax of 15 cents pc proof gallon on such spirits (excep gin) when rectified. purified or refine' tcordials or liqueurs, blends of win when for purpose of perfecting then according to commercial standards, O of straight whistles aged for not les than years and without the additio of colOring matter and not reduced be low 80 proof would he exempt: on beeI lager, ale, porter and other fermente , liquors containing more than one hal per cent of alcohol, s1.50 per barrel C
 31 gallons; on still wines Gncludin vermuth, champagne and other spark
 ling wines), liquors, cordials, artifics , wines or compounds sold as wine, tax equal to that now imposed by lav
 The tax imposed by the bill would als
 apply on stocks in excess of 9 galloi 7 on which tax has already been pal, | On grape brandy or wine spirits with
 drawn from any fruit diStillery ( warehouse, tax equal to double tt ' tax now imposed on sweet wine,
 cents per proof gallon, or grape brand :, content, and on grape brandy or vii . spirits withdrawn for fortifying pul . poses prior to passage of bill and m T so used, 20 cents per proof gallon; upC I syrups or extracts used in the manI :. facture of soft drinks, cents per ga = lon if sold for $1.30 or less, cents :; sold at $l.30 to S2, and up to 20 cen - where sold for more than S4 per ga Y, lon. On unfermented grape juice, art
 iicial mineral waters not carbonate o fermented liquors containing less ths
 one half per cenf-cf alcohol oipoef. al