The Birmingham age-herald., 1918-08-18

tax on yachts and pleasure boats, but exempted motorboats and canoes cost ing $20 or less, the exemption being to protect home built craft
 INCOME SCHEDULE
 Considerable interest has been mani fested in the normal tax on personal in- comes and the committee announced the text of the schedule as follows:
 Section 21o That there shall be levied, collected and paid for each taxable year upon the net income of every individual a normal tax as follows:
 '(a) In the case of a citizen or resi- dent of the United States, 10 DOT cent of the amount of the net income in excess of the credits provided in section 21S; provided, that upon the first 5000 of this amount the rate shall be percentum. "tb) In the case of nonresident alien
 10 per centapf the amount of the net i'm come in excess of the credits provided in section 216." Section 2lS, as agreed to- reads: Credits allowed: For purposes of normal tax only there shall be allowed the following cred it's
 "(a) The amount received as dividends from a corporation which is taxable un- der the corporation income tax upon it's net income.
 "(b) Amount received as interest upon obligations of the United States, any state, territory or political subdivision, or the District of Columbia.
 "c) In the case of a single person a
 personal exemption of 5000, or in the case of tho head of a family, or . mar ried person living with husband or wife. a personal exemption of $2oo0. husband and wife living together
 e ho tion of 5000 against their aggregate net income. and in case they make separate returns the personal exemp- tion of $2000 may be taken by either or divided between them.
 s"(d) Two hundred dollars for each person (other than husband and wife) dependent on any and receiving his chief support from the taxpayer if such dependent person is under IS years of age or is incapable of self-support, because mentally or physically defcc- tive"
 UNEARNED INCOMES The committee has agreed by very close vote to a differential of three per cent against unearned incomes and has sent back to tho treasury the lat ters draft for this purpose for re- drafting with the probability it may be dropped on reconsideration. If this differential stays in the bill the pres ent per cent normal tax on incomes under 5000 annually might be made s per cent on unearned incomes and a per cent on earned incomes and nor nal tax of 10 per cent on incomes from $4o00 upward might be made 13 per cent on unearned and per cent. or tho present 10 per cent, on earned in- comes committee member today ex- plained. Chairman Kitchin tonight explained that the committee had referred it's ds- cision in favor of an excess profits tax Of 70 to 60 per cent, after $50oO exemption and per cont deduction. to the trcas-
 ury for it's approval He said the com
 mittee also had communicated to the
 treasury its action in dividing business Into fthrce classes for pre-war earnings deduction. The committee has adopted provision that in no event will the ex- cess profits tax of corporations having less than S5o,00o capitalization exceed s0 per cent of It's net income. An effort will be made next week to apply the same provisions to the war profits tax.