davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14

In a general way the tax has been
doubled, excepting that the tax on
whiskey has been more than doubled.
Playing cards are taxed five cents a
package. Chewing gum must pay a
manufacturers tax Of per cent Of
the selling price.
Amusements are taxed at the rate of
one cent for each ten cents paid for
admission, excepting such amusements
as charge only five cents admission.
Cabarets must pay 10 per cent Of the
customers bill TO the government.
Cigars, cigarettes and tobaccos have
to meet sn additional tax also, cheaper
grades of cigars having some 33 per
cent added to the existing tax, while
the dearer grades are taxed 100 per
cent to 200 per cent higher than before
Cigarettes, in addition TO the old tax
of s1.25 per 1000, will have to pay
50 cents per I 100.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
.IV-SurtaxeS,
Old and Neu

SO far there have been considered
only the two normal income tax levies
for the year. They are styled normal
income taxes" in the law itself TO dis
tinguish them from the "surtaxes."
The surfaces are styled additional
taxes" There is the surtaX under the
new law of October 3, 1917, in addition
to the normal income tax of the same
date, and then there is the surtax un-
der the old law of 1916, in addition TO
the normal tax Of the same date. Thus
we have in force, in addition to the two
normal income taxes, the two surtax
levies, making quadruple tax upon
certain incomes. The new income sur
tax applies in this manner;
On income between IS. 900 and $500. o.. 1os
On incom. between $500 and $4,000 2's
On income between $40 900 and 1850 Sc
And so on until inallv so per cent is
exacted from income in excess OF ST.
100000. But, in addition TO this sur
lax, lltTe - llt Nlu SNANoff "444N44 '44 800
be added. Under the OLD law the sur
tax percentages run:
On income between 10000 and $4,000. IL
On income between $40 900 and $4,000. 2qs
On income between SOC, 900 and $4,000. SO
And so on until II per cent is exacted
from income in excess Of sl,0OO,OoO.
These two surfaces call for payments
as illustrated in this table, starting
with the lowest income 20 which either
surtax apples Sec Table {.
Observe how the above table treats
the income progressively in install
ments. The 100000 income is subject TO
the new per cent tax on that portion
of it which is between $4,000 and $500
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
Draft of Wealth as Sweeping Consumption of Man
hood-Every One, From the s325 Day Workman to
the Millionaire, Through All Professions, Is Taxed
by Progressive Levies to Supply the Snews of War
for Those Who Go Into the Battle Line

II is subject to 2 per cent tax on that
portion of IL which is between $1,000
and $4,000. Il is subject to 3 per cent
tax for another portion OF its bulk, and
so on. That portion of il which is be-
tween $4,000 and $4,000 is subject to
the old surtax of per cent as well as
to the new surtax Of per cent. We
get the total amount of surtax to be
paid on an income of 100000 by adding
together the progressive shares, SO,
$50, SIS, assessable against lesser in
comes, until the aggregate surtax tax
to which the 100000 is subject Is
reached, viz, $4,000.
There have now been considered the
two normal income taxes. likewise the
two surtaxes, that apply progressively
TO large incomes. We can here sum up
all four together in an illustration. To
do this we would have TO take an indi-
vidual who had an income of over $780,
600, as the old surtax does not apply
below that figure. But there can also be
examined minor incomes TO which at
least three of the taxes will apply, the
two normal income taxes and the new
surtax. Both the triplicate tax levies
and the qusdriplicate levies find illus
tration In Table D.
All income above $4,000 is liable to
the four taxes. These four taxes oper-
ate progressively until the income Of
over 81 $780, 900 is subject to q grand tc-
tai Of ssOOl by reason of them.
These four forms Of income tax are
separate from the excess profits tax,
which is assessed against these same
incomes under certain conditions. And
the excess profits tax is in turn sepa-
rate from the munitions tax.
The recapitulation Of the normal and
surtax income taxes under the new and
the old laws is made more complete in
Table +.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
Net Income and
Capital Defined

What is net income and what is cap.
ital? The income tax law defines these
in detail Capital, in the case Of cor
poration or a partnership, includes ID
actual cash paid in, 20 actual cash
value Of property paid IN other ,hsn
cash, including trademarks, fran.
chises, good viii lin no case 70 exceed
par value OF stock, and 81 paid in OF
earned surplus and undivided prof.
used in the business, exclusive Of the
undivided profits for the tsxab. year
Capital, in the case Of individuals, in.
cludes % actual cash paid into Ii.
trade or business, ~ actual cash vslu.
of tangible property paid in, and (3)
actual cash value of patents, copyrights,
good will, trademarks, franchises o,
other intangible property not TO exceed
the actual cash value paid therefor
The income tax law also defines n.i
income as it relates % individuals
Briefly, the definition is as follows:
(a) The net income OF taxable
person includes gains, profits and in
come derived from salaries, wages or
compensation for personal service Of
whatever kind and in whatever form
paid, or from professions, vacations,
business, trade, commerce OF sales,
or dealings in property, whether real
or personal. growing out o. owner
ship or use Of or interest in real or
personal property; also, from in
terest, rent, dividends, securities or
the transaction Of any business car
ried on FOR gain or profit, Or gains or
profits and income derived from any
source whatever
Net income in the case Of corpora.
tions is also defined. Il is ascerta.ued
by deducting from the gross income all
necessary expenses paid for the main.
tenance and operation of IT'S business,
including rentals. Certain things may be
deducted, such as taxes, depreciation.
property losses not covered by insur.
ance, etc. Certain other things may be
deducted only in part, such as interes,
on Indebtedness.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14

or businesses OF whatever descrip-
ton. whether continuously carried
on or not.
members of both houses OF Con-
gress are exempt from the operation
of the excess profits tax on lndivid'
uals.
Partnerships in this respect are IN
cluded under the same specification as
individuals. OF professional partner
ships there are many. However, the
exemption feature necessarily operates
differently, and in part TO the disad-
vantage of the partnership. The cor
poration may fare better even than the
partnership. For a. corporation, con-
sisting only Of several active members,
may pay a reasonable salary to those
stockholders in active service and thus
avoid a larger net income than would
otherwise be exposed. But partner
ship permits of no salary resort and
Of no individual deductions. For ex-
ample, where an equal partnership, say
a law firm of three members, earns a
net income Of $4,000, it must pay as
partnership a tax Of 8 per cent on
$4,000, less the $4,000 exemption, or
So, 900, making a tax Of $720. Each
member must pay tax Of $40.
Were they permitted to divide their
earnings first, then each deduct the
Sc, 900, as is permitted an individual,
they would not be liable to any tax, as
their individual share of the $4,000
profits would be only $4,000.
For the purposes of illustration un-
der the excess profits tax schedule we
have used the per cent exemption for
corporations. As a matter of fact, this
is an average deduction which will be
used by the Treasury Department in
cases where it will be difficult to ar
rive at the exact deduction which is. to
be made under this provision:
An amount equal to the same per-
centage of the invested capital for
the taxable year which the average
amount of the net annual income of
the trade or business during the pre-
war period was of the invested CAPT
tai for the pre-war period (but not
less than Z and not more than 8 per
centum of the invested capita! for
the taxable year,.
Some corporations, partnerships and
individuals engaged in trade or bust
ness may have been making large
profits before the war, or they may
have been making small profits before
the war. Their exemptions will vary
accordingly between the and the 9
per cent. Where the company or the
partnership or the individual was not
engaged in business during the pre-
war year the average deduction of 8
per cent is allowed.
Foreign corporations and partner
ships and absentee aliens are excluded
from the benefits of the $4,000 or the
$4,000 exemption under the excess
profits tax law, though having the bene-
fit of the percentage deduction.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14

cilities have been provided the d..
partment for this task
II is urged in criticism OF the ne.
excess tax law that while il reache,
the business man, the tradesnan, N.
professional man, the wage-worker and
the farmer, as we'll as the corporations
it does not so well reach those who
Geriye their income from investment
The excess profits tax, however, does
in part touch those who live on IN.
unearned increment Of wealth invested
in non-industrial securities.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
Multiple Taxes

Eight separate normal income. sur
tax and excess taxes have been con-
sidered. As the corporation taxes are
imposed before the dividends are dis
trbuted, a man who draws an income
Of. let US say, $4,000 from his incor-
porated company, after it has paid the
two normal income corporation taxes
and the one excess corporation tax, is
liable 10 the four normal and surtax
levies on individuals, outside of any
tax on whatever other individual bust
ness he may have as farmer, lawyer,
doctor, broker, etc. If the income in
question be derived from munitions
still another tax schedule applies TO
his income II man draws $4,000 a
year from his own individual trade he
will pay five separate taxes. amounting
70 a total OF $1,000
Each of the taxes named is indepen-
dent, and no reference whatever is
made to exemption because one indi-
vidusl is also subject 10 another SEIZED.
ule. Each tax is complete in itself, and
is assessable against whoever falls
under its classification. regardless of
how many times he may otherwise be
taxed as an individual. as a tradesman.
as partner m as stockholder
Moreover, under the amended act Of
September, 1915, 1t is not permitted to
subtract from the net income. of either
individual or corporation, the other tax
or taxes levied. Thus. a tax is paid
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
The Dead Must Pay

In addition to the existing estate, IN.
heritance, or succession tax, extra taxes
must be paid on the estates OF al per-
sons dying after October 3. The old
law, which still operates, exempted
$4,000. The new law eXempts only
$4,000, a tax of per cent being in
posed on all between $4,000 and $780,
900, and so on progressively until a
total inheritance tax Of % per cent IS
imposed on estates exceeding 100000
0nO
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
Making of Returns

All persons who have An ANNA! M
come, from whatever source, OF more
than $1,000, whether married or single,
must make a report Of the nature o.
that income TO the collector, and shoalo
apply TO him for blanks on which 70
make the report.
All persons who employ others, o.
who pay out to others dividends, SAL
aries or wages, or like compensation"
of more than $500 must make report
of the nature of that payment 70 the
collector.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
Passenger, Freight,
Telegraph and
Telephone Taxes

The public must also pay the
freight" through a war tax of 3 per
cent on the freight bill when shipping
and a tax of per cent on the pas
senger fare commuters exempted)
Telegraph and long distance telephone
messages are subject to fve-cent tax
on each message. Seats and berths in
psrlor and sleeping cars call for war
tax Of 10 per cent on the amount paid
therefor.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14

The tax on munition manufacturers
has been reduced from 1914 per cent
under the law of September, 1910, 20 "
per cent, under the new law o. Oeto'
Der, 1917, the levy being on the net
profits aside from any other TAX.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
Penalties

For failure 70 make the proper re-
turn a fine of not less than $50 and NOV
more than $1,000 may be imposed.
For making fraudulent return WIZ
intent to evade. fine OF not more man
$1,000, or Imprisonment for one ye''
or beth, may De imposed.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
Postal Rates

Letter postage on November 8 will
be three cents in place of two cents.
Postcards must bear a two-cent stamp
hereafter. Second-class mail matter
also bears an increased tax.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14

Makers o, automobiles, films, Jew
elry, patent medicines, Photographs
records, sporting goods and toilet arti-
cles must pay tax of from . 10 per
cent on the selling price.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
Tax on


Under the head of TAX on Vice"
there remains TO be considered the ex-
else tax. The war tax on beverages is
in addition TO the normal excise tax.
which still operates. A few illustrations
are given in this table:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14

This total tax is 1915 per cent of
100000 capital. Had the profits
been 100 per cent the total tax would
be al the rate Of 1914 per cent.
We have seen how the individual grocer
or the incorporated grocery company
would have to pay 1880 of the slO,-
600 to the government. This would
leave the grocery enterprise $3.50.
The excess profits levy attacks com
pany like the Bethlehem Steel Corpora
ton heavily. The net income Of the
company is. We may safely assume,
S40,OO0,OOO, large percentage Of its
capital. Much Of it will be subject to
the higher percentages. and the cor
poration may be left with only S20,-
100000 OF its profits.
The excess profits tax is expected TO
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14

The column Total" reality the
under the old and the
laws. For so of the the total
$4,000 has He
the preceding taxable To
begin the all between 5000 and
and so o progressively.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14

Aside from income, the nation ha:
drafted revenues from many other sec
ondary sources.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
Stamp Taxes

Business transactions must here
after bear the war tax stamps. Bills
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14

be precisely the same. The distinction
between the $4,000 and the $4,000 ex-
emptions in this and in many cases is
only apparent, according to this inter
probation of the language Of the act.
The amount Of the deduction over
$4,000, if any, in cases parallel to the
one cited cannot be availed Of, unless
the Treasury Department gives new
Interpretation to the obscure features
of the law.
Proceeding to the other extreme, let
US take as an example a corporation
that has a capitalization of 100000
and has earned so per cent, or 100000,
during the year. Assuming that the
average exemption rate OF s per cent
10 due it because of its modest pre-
war earnings, we have the following
results:
Exemption (5 per cent Of eApitaD
Taxable income Observation-Disclosures $4,000
Taxable amounts in progression;
s67, 900 difference between IS per
cent of capital and eIemption) TO
be taxed at 20 per cent. ......... $4,000
$50. 900 between IS per cent and
20 per cent Of oapitsD to be taxed
at IS per cent. ................. 1e,ooo
$4,000 between 20 per cent and
rs per cent Of capitaD TO be taxed
at IS per cent ............. 1f,oOo
$50. 900 between Is per cent and
80 per cent of oapitaD to be taxed
at IS per cent .................. $1,000
$4,000 lover 80 per cent Of ospitaD
to be taxed at 90 per cent. ....... 10000
Total excess tax ...................s lo',ooo
Total taxable income. $4,000.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
IlNOrn1o
Tax, Old

Vow we come 10 the old normal IN
come tax, under the law Of 1916, which
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-14
What You Must Paw Under the New War lax Lay
individuals Corporations and Partnerships, Accord
inc to Earning Power, Must Meet Exactions From
to so Per Cent-ln Addition Excess Profits Are Cut
Postage, Playing Cards and Beer and Theatre and
Railroad Tickets Will Cost More

upon the tag itself and upon other
Evening capital news. (Boise, Idaho) 1901-1927, 1917-05-13

produced the most corn ever raised on any
one acre. That acre was farmed by bow.
and the product was '25o bushels In 1912
Mississippi fasmer took more than 5000
bushels of corn from 7O-acre field, his av-
erage being in excess of 12O bushels per
acre.
And now as to the meat! When the south
has developed its livestock possibilities,
Uncle Sam will not have to go to Australia
for his mutton, nor to Argentina and Uru-
quay for his beef In 1916 the livestock of
the south was worth more than billion dol
lars, and with the present demands it will
greatly increase. Recent experiments show
that beef can be produced in many of these
states at or cents pound, and that pork
can be raised at cost of less than cents
Evening capital news. (Boise, Idaho) 1901-1927, 1917-05-13
pound. This is in striking contrast to the
prices we are paying for meat of all kinds.

pound. This is in striking contrast to the
prices we are paying for meat of all kinds.
might also mention how the south is fast
becoming the winter garden of our biggest
cities and towns 1t is now receiving more
than SoOOOOOOOO year from fruit and veg
etables and vast trucking industry has
grown up along the coastal plain all the way
from Chesapeake bay to the bottom of Flor
ida, and along the shores OF the gulf as far
south as the Mexican border They are now
shipping vegetables to all parts of the nor.h
from southernmost Texas, and | have be-
fore me as | write copy of the Galveston
News, containing telegram showing how
John Burns, who lives at Eagle Lake
wherever that may be-. recently shipped
four carloads of spinach from 10 acres of
ground at price of 5000 per car The DIS
patch says that he put so acres in spinao Il
last season, and that the crop brought him
in $1,000
Our national government is modifying
our manufacturers, in order that they NAV
be used to the best advantage for us and our
allies in Europe. This will be of great i'm
portance in the economical struggle when
peace comes and also in our national devei-
opment for all time to come The south has
enormous manufacturing possibilities. 1t has
more coal than Germany, Great Britain,
Austria, Russia or France 1t has more
than lOOOOOO0,OOO tons of iron vet to b.
mined, and it is now annually producing
about 100000 tons OF pig iron. or more
than one-half of all the pig iron made by
the world. 1t is mining about one-half of all
the coal OF the world and its coal resources
have barely been touched. 1t has enough
coal and iron to furnish armor plate for all
the navies on earth, and, | venture. leave
enough to make steel girdle around the
equator.
Among the absolute necessities of the
present time are gasoline and fuel oil. The
oil is used to run the fleets of our navy and
the merchant marine. and the gasoline must
be had for the automobiles, motor trucks and
aeroplanes. The richest oil fields of the
world are now in the south. Those of Okla
homa, Texas and Louisiana are already pro-
ducing one third of the oil of the world, and
as | write this new fields are being opened
IN Louisiana and Texas, along the Mexican
gulf from Houston to Galveston Port
Arthur, on that coast, is great oil spigot,
into which rivers OF petroleum from four OF
five states are now pouring, and the output
from there goes in tank steamers to Europe,
Asia and Africa, and, in fact, to most parcs
of the world. The government has taken
this great oil factor into account and care
will be used to conserve not only the oil, but
the vast quantities of gas that flow from the
wells
The south of the future will bulk large
Evening capital news. (Boise, Idaho) 1901-1927, 1917-05-13
The New South as a War Asset

ming both day and night, and the lighted
windows shine out of the darkness. Both
manufacturers and farmers have been spur
red on by the demands of the war, and more
business is being done than ever before The
same conditions prevail in all parts of the
country, and plans are making which will
eventually turn the south into an industrial
workshop similar to that of New York and
New England.
But let me give you bird's-eye view of
what Uncle Sam has in the south 1t makes
one feel confident as to our success when
we count up our assets and learn what they
are. had no appreciation of the extent Of
this part of our country until planned out
this trip. The distances are magnificent l
came 1l2O miles in an almost straight line
Evening capital news. (Boise, Idaho) 1901-1927, 1917-05-13
A Bnds-Eye View Of the Wealth and
Resources Of the Most Rapidly Developing
Fart OF Our Country -. -. :. :. :.

IN furnishing the goods we have lacked on
account OF the great war in Europe. They
are already establishing dye works in Ten
nessee and other states, to free us of our de-
pendence upon Germany. In the past six
months town of 5000 people has grown I'D
at kingsport, which is making dyes of coal
tar, and the by-products Of the coal mines
are such that the quantity of colorinp mat
ter can be indefinitely increased.
We have been suffering largely from the
loss OF the fertilizers of Europe. The south
has vast phosphate mines, and it has water
powers which will enable us to get nitrogen
from the air, as they are now doing in Eu-
rope AS to sulphur, we have some of the
largest deposits of the world, lying under
the swamps within few hours ride. of New
Orleans, and another great sulphur bed has
recently been discovered at Freeport, in
Texas, so near the Gulf Of Mexico that the
sulphur can be taken from the mines almost
direct to the vessels. The American pro-
duct has revolutionized the sulphur indus
try. Sixteen years ago, Sicily had nine
tenthS OF the business, but now fully half Of
all that is mined comes out of Louisiana.
and we shall have all the sulphur we need
tor making munitions in our great war with
the Germans
We have also the potentially OF making
the greatest supply of sulphuric acid as
by-product of our copper mines. One ci
the largest plants now in existence is that
OF the Tennessee Copper company, which
takes the sulphur fumes from the reduction
ct the ores and reduces them to the acid So
important in the making OF munitions.
Another industry which the war demand
calls for is shipbulding In this the south
is bound to take large part, and especially
in making vessels of wood. Little shipyards
are already springing up along the gulf
coast. There are several in western Luosi-
ana. At Orange, Is miles east of Beau
mont, an Italian named Paggio is building
a fleet of ve-masted ocean sailing vessels.
He has one already completed, and five 9th
ers under way The first is now ready 20
sill, and it will take cargo Of lumber %
Europe. | understand that he has already
engaged return cargo, and that if the round
trip is successful, the profits of that trip
alone will pay for the vessel.
AT Slidell, near New Orleans, they have
started to build ,cean vessels, and others are
being constructed on the Natchez river,
which will find their way out to the harbor
OF Port Arthur At Lake Charles. La. they
are building ocean-goinc barges which have
gasoline engines and sails so that they can
move by their own power if they should
become detached from the steamers that are
towing IL. nj.
Farther north. along the south Atlantic
coast. some shipbulding is going on, and
that in addition to the great plants at New
port News and at Baltimore One of the