Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1918-01-17

tIe.lao Ale.22o

Tho normal tax follows all net In
come II income is from dividends of
corporations, the normal tax rs elimi-
mated, as before stated, thru tho cor
porution tax OF per cent
Excess Profits Tax.
No legislation OF recent years has
caused M much comment and uncer-
tainty as tho excess profits tax. which
is In addition To all taxes heretofore
mentioned.
Tho tax is levied against the net in
come OF corporations. partnerships
and individuals In excess OF certain
prescribed deductionses q renlIged from
trade, business professions and oCcu-
pations. but the amount Of tho tax or
tho proportionate share of any part,
nership tax will be deducted from the
income in asHesEng the income tax
Tor the same year,--ScCtiOn 900
Where little or no capital Ia In.
VOlNed or Il nominal capital there is
"A flat tax OF per cent on the in
comes OF corporations In excess of
So O0O and on individuals and part
uorshipa u flat tax on Incomes In ex-
cess OF $4,000 this la addition to
other taxes heTainhefore mentioned
The excess profits tax OF corpora
tions will probably he fixed at S~per
cent OF invested capital on graded
scale The law fixes the percentage
based. on pre-war years, t9ll-l2 and
1914 at not under 7 per cent and not
over per cent on invested capital.
with the chances Of per cent being
fixed as about the proper amount by
tho revenue bureau.
Tho term, "invested capital" has
not been fully explained. and as yet
lawyers disagree
May Give Definition.
The internal revcnug bureau, viii
probably define Invested capital in
the near future.
Where income IL derived from
stocks and bonds or other investments
the excess war profits tax does not
affect the individual.
The excess profits tax follows with
"A flat rate Of 4 per cent on all in
comes over $4,000 of individuals from
professions. occupations. trades. bust
ncases, whore no capital Is Invested.
The law eNempts all legitimate ex-
pendltures with view OF producing
Income; the law encourages partner
ships and makes the liberal exemption
OF 5000 plus moderate salaries, the
law recognizes the relationship ot
blood and marriage tics In support
extended by unmarried 10 dependents,
the law releases all corporations or
ganiTed without capital for charitable
purposes. etc, from all income tax
the law permits the income taxpayer
to file his own schedule which, II not
correctly prepared, will be returned
with tho corrections needed. indi-
CHted--the sooner the schedule Is
filed the better, for there will be
many filed that will he returned for
correctipn 40 many thousands coming
under the tax for the first time The
law viii aid the honest and punish
the dishonest. s.
II ~ fortunate that ms capable a.
man as Commissioner Roper is NJ the
head OF the internal revenue bureau
man especially fitted for the po-
Hition.
Word ~ To Corporation Tav.
while II was not the intention to
enter into a consideraton Of cornxrn
ton taxes in this series of articles. "A
few remarks may not be out OF place.
The expert OF ono OF the largest
trust companies was requested TO state
the five leading questions which he
was called upon 10 answer and the
answers thereto. He answered, de-
sCrihiug sections ot the law, which
may he referred TO ny anyone Bufsi-
cicntly interested
who is subject to the excess profits
tax?
Corporations. partnerships and In
dividuals. Sections 202-2O9
How is the excess profits tax ap.
piled?
where thcy have invested capital:
Corporations on net income loss ex-
cmpuon and deductions. as describedq
In sections 202 209 partnership and
citizens on net income less deductions
and exemptions. as described In sec
tuns 203 204 Where they have nom
mai capital Corporations. partner
ships and citizens on net income lass
exemptions and deductions as in 2O9.
"ls the income received MS salary or
WAGES subject 70 the excess profits
tax
Yes
"Can member Of partnership
charge a reasonable sum AS salary
Eyes
How is the tax figured
Where there Ia an invested capital |
the tax is figured on a scalc-scCtion f.
2O3-no tax being due until entire
deductions and exemptions art-madc. [.
"WhertSthe capital is nominal. take
the benefits Of exemptions e and de !
ductions, as allowed in 2Os. and fig
urc 3 per cent on the balance
~ "In taking inventories OF stock cost 1
price must figure
An taxes are payable at any time
after assessment, and at all events not Z
,stor than June 3. Under O new pro-
ytsion In the act Of October 3. lgIT.i
subject TO regulations To be presented |
hN the secretary OF the treasury pay
100 advance ~ as @ sment. with, dis
count ot 3 per cent I'M ccrta n cases ot !
fuN m"uf before June 10
ll.ud pf SarivsJ