The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-04

a year in taxes to men with incomes OF
10000 and more.
The additional exemption of 5000 for
each dependent child under Is years old
Is included in the bill and extended to
cover other dependents who are men
tally or physically detective. Non-resi-
cent aliens are to be given the benefit of
the per cent. abatement in the normal
tax.
The surtaxes on individual incomes are
as shown In THE SUN to-day
The bill specifically includes the sal
aries Of the President and other govern
ment officials The report calls atten-
ton to the fact that legal opinions
differ on whether this Is a lawful tax.
and the committee Is anxious to obtain
a court ruling on it. Incomes Of army
and navy Officers up to $4,000 are ex-
empt from tax.
Partnerships Are Exempt.
Partnerships are exempt from All
taxes except the Individual income taxes
or each partner. Profits made by part
nerships, whether distributed or not,
will be so taxed
The corporation normal tax levies Is
per cent. Of. the net income left after
deducting the credits allowed but pro-
vides that this tax shall be but ~ pc,
cent. on the total of % the dividends
PAID curing the taxable year. and CD
the amount paid during the taxable year
out Of earnings or profits In DISCHARGE of
bonds or other interest bearing obliga-
lions outstanding prior to the beginning
or the taxable year.
The deductions allowed from gross
income are the same as under the present
law with these exceptions:
~ Interest paid on obligations ex-
cept on tax-free obligations, is added.
go The bill, since-zpit- allow the
amount Of income and excess profits
taxes PAID to foreign countries upon in
come received from sources therein, as
credit against the income tax pay
able In the United States, does not allow
the same deduction again in computing
net income.
To Allow for War Industry.
CD new amortization provision has
been added allowing the Treasury De-
partment to allow specific amounts
where buildings and machinery have
been established and will be OF little
value after the war, but this amortiza-
ton Is not to exceed in any year 20 per
cent. of the net income
90 The depletion provision of the ex-
listing law is extended to cover cost OF
development, particularly in the instan-
ces OF mines, oil and gas.
In computing net income the bill al
lows corporations the following credits:
l. The amount received as interest on
obligations of the Government, State,
Federal, county or otherwise.
2. The amount of the war or excess
profits tax paid for the same taxable
year.
3. A specific credit Of 81 900 to don,es-
tic corporations.
II 1t Is found that any CORPORATION
has in the past paid a larger tax than
was actually due this excess may be
deducted from taxes due under the new
bill.
Under the existing law all corpora
tions having an accounting period ending
with the close OF the calendar year and
all individuals are required to make
their returns the following March l and
to pay their tax on or before June Is,
and corporations having other fiscal
years are required 10 make return on
the first day of the third month fol-
lowing the close of their fiscal years
In order 10 harmonize the payment
dates OF business concerns and Govern
ment transactions, with view to dis
tributing the burden upon the banks to
the best advantage, the time for filing
the return OF the latter corporations is
changed TO the fifteenth day of the third
month after ,the close of the calendar
or fiscal ysar. a like period Is also
provided for individuals having account.
ing periods for a fiscal year other than
the calendar year and also for those
having an accounting period closing at
the end Of the calendar year
In order not to have the large pay
ment OF income and excess profits taxes
come upon one date the bill provides
that these taxes be paid in three install
ments. one-third to be paid at the time
OF the fling of the return. one-third on
the fifteenth day OF the second month
thereafter and the remaining one-third
on the fifteenth day Of the fourth month
thereafter.
First Payment March Is.
In other words the tax payment dates