South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-09-03

! production. and upon relative ABILITY
/ OF the people to pay taxes now and
after the war.
/ Tre committee explained that D.
decided upon the raising OF $1,000
600. 600 bytaNation because it had
accepted as a sound fiscal policy the
( recommendation OF Sec'y McAdoo
I that one-third Of the governments
/ estimated expenditures of $4,000
4 GOO 600 this year be obtained from
this source. and the remaining two
thirds 10y bonds.
/ Bonds Considered Later.
While the committee" the report
+ added makes this recommendation
Tor the current year. il realizes that
no fixed policy as 20 relation OF
taxes 10 bonds for the future can De
determined a L this time and that the
amount that should be raised by tax
alton in any given year must neces-
sarily be determined after due con
sIderation is given business ana
financial conditions existing IN such
year.
The committee further adopted
/
the $4,000, 600, 600 should be raised
from taxes on incomes. excess and
war profits and uxUries and semi
/ luNuries The committee has en-
deavored 10 distribute equita bly, tho
new tax burden and 10 levy the taxes
i'm such a way that the burden should
| be met 10y those most able 20 pay IL
/ has endeavored TO wipe out all in
I equa kites in the operation of exist
/ ing law and recommends the repeal
, Of the major portions Of the revenue
acts Of 1916 and 1917 in order that
/ the existing internal revenue laws so
I far as deemed practicable will be
/ in one act ana therefore more read
/ lily accessible TO the tax payers.
The report said that the bill levied
on all citizens or residents of the
: United States normal tax of II per
/ cent upon the amount of income in
/ excess Of exemptions except that on
the first $4,000 of the taxa BILE amount
/ the rate shall be six per cent.
While under existing law only per
sons OF lawful age have 10 make re
turns. the new bin requires persons
under the lawful age and having a
net income for the taxable year Of
900 or over if single. or if mar
ried and not Twin gvith husband or
wife. and all married persons living
with husband or wife having net
income of S2,O0C or over 10 make
returns
Corporation Tax.
The bill levies a corporation tax
OF rs per cent upon the amount Of
The net income i'm excess of the
credits allowed. but provides that the
rate shall ne L per cent upon 50
much Of this amount as does not eX-
coed the dIvidends paid during the
taxa BILE year. plus the amount paid
during the taxable year out Of the
earnings or profits in discharge OF
bonds and other interest bearing OBJ
/ legations outstanding prior 90 the be
ginning OF that year.
This provision was under fire ir
. the committee today. but without
change Under r. corporation
having 100000 net income in excess
. of its credits which paws out during
The year $4,000 IN dividends and
DISCHARGES $4,000 worth of bonds.
would pc taxed . yer cent on $50
060 and IS per cent on $4,000 The
. committee believes that this rebate
Of six per cent on distributed profits
viii stimulate the payment Of divi-
bends. which viii be subject 20 sur
tax in the hands Of the stockhold-
ers This nil makes no change IN
the corporations exempt from in
come tax
Partnerships Exempt
Partnerships are not liable 20 IN
come tax. but each partner viii paw
the income tax on his share of the
, partnership profits, whether distrib-
gted or not
The bin applies the war and excess
profits taxes 10 corporations ONLY
P-ov sion is made 20 protect corpor-
atiors whose invested capital is less
han $50. 00o. and those corporations
IN which invested capital is not a
material producing factor
Increase Estate tax.
Increases also were made In the
estate tax. which viii range from
i three per cent 70 40 per cent.
The transportation and Insurance
taxes already made public included
a new tax OF 10 per cent upon the
amount paid 70 any telegraph or tel
ephone company for any special
leased wire or talking circuit. but
does not pply 70 coueo,. IN and dis
seinIuat.or OF news thr1 .gh the pub
lie press or In the conduct by a com
mon carrier or telegraph or 'eIa
phone company OF its business as
such
No Reference 70 Prohibition.
There IS no reference 20 the inn
minence Of prohibition legislation n
what the export said about the osv-
ers 90 TAX Some new sdmiuistra- I'VE
provisions ale imposed on liquor. in