The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1918-01-03

In TACT, officials in charge of the
tax gathering machine. expect to elm
mate the usual grudging spirit of tax
payers. They have called this lib
erty tax" because its proceeds go
to the same war cause as liberty bond
issues, and every effort will be made
to encourage the spirit of willing Civ
ing among those on whom the tax
falls.
About 100000 persons will pay
income taxes, 1t is estimated, and most
will he subject to a direct federal tax
for the first time, for less than 5OO,-
600 paid income taxes last year under
the old law. Tax return forms have
been made as simple as possible, those
for incomes of less than $1,000 being
especially free from technical fea-
lures or inquisitOrial items.
Corporations will pay income taxes
also, but on a different basis. Their
net income is subject to tax of g
percent under the new war revenue
act. and certain technical deductions
are allowed. Corporation returns are
due between January l and March l,
for the calendar year 1917, and com
panies operating on fiscal year basis
must report within so days after the
end Of the fiscal year.
Beginning tomorrow also, excess
profits returns for the year 1917 will
be received from corporations, part
nerships and individuals. The last
date for the filing of these is March
/, the same as on income returns and
payment must be made also before
June 10, except under the fiscal year
arrangement
Individuals making more than
$4,000 during the year also are sub
ject to an 8 percent tax ON their in
come above that amount, independent
of the regular income taxes This
percent levy is imposed on individ-
uals with no capital, or with only NOM
inal capital, such as professional men
with money invested in books, dentist
and physicians instruments. or other
equipment.
Another kind Of tax is laid on ex-
cess profits of businesses having in
vested capital. On this basis, taxes on
net incomes or profits In excess of
certain deductions are at the rate of
20 percent of the amount of net in
come in excess of the deduction and
not in excess of 10 percent on the in
vested capital, % percent on the
| amount In excess of Is percent and
not in excess of 20 percent; 35 per.
cent on the amount in excess of &c
percent and not in excess Of % per
cent; 40 percent on the amount in ex.
cess of % percent and not In excess
of 33 percent; and go percent on the
amount in excess of 80 percent.
Before a tax is levied on excess
profits, for 1917, a business is per
mitted to make the same percentage
of profits on its invested capital that
it made on its invested capital during
1911, 1912, and 1913, the so-called
/ "pre-war' period, providing this Is
not more than nine percent, anC
$4,000 additional for a corporation OF
$4,000 for a partnership or individual
These are the deductions which are
not taxable.
Definitions of terms, particularly
the items making up Invested CAPT
tai" have been made in a number o.
recent regulations issued by Commits
siOner Roper.
Excess profits taxes and incom,
taxes may be imposed OH the sam,
earnings, If they are sufficiently high
The law specifies, however, that tn,
amount of tax payable under the ex
\ cess profits may be deducted from
lgross income, before determining tn,
net income on which the income take
are paid.