The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-09-03
COMPLETE DRAFT
OF WAR TAKES
Continued from page -


been changed or added to the Dill
since the United Press gave this OUT
line are.
The income taxes, which were
changed at the behest OF the Secre-
tary of the treasury, McAdoo.
The excessive profits, war pfohts
and corporation income taxes.
The liquor taxes.
E,xemptions in the income tax re-
main as now-$1 900 for single per-
son. $4,000 for married men with an
| additional exemption of $500 for each
| dependent child under Ii years.
The first $4,000 of taxable income
hears a six percent normal rate.
Above that figure, the normal rate
goes UP TO IL percent with sur taxes
| as follows:
SIS 900 to $500, two percent; $500
to $4,000, three percent; $4,000 TO
sic, 900, seven percent; $4,000 to
| $40 900, ten percent; $4,000 to $780,
| 600, fifteen percent; $4,000 to S40,-
| 900, twenty percent; $4,000 to s5o,-
900, twenty-five percent; $4,000 to
$50 900, thirty-two percent; 100000 to
$40 900, thirty-eight percent; $4,000
1 to $4,000, forty-two percent; SSO00o
to $4,000, forty-siX percent; S9O,oVo
/ to S1OO, 900, forty-eight percent; $780,
600 to 100000, fifty percent; $780,
600 to 100000, ffty-two percent;
100000 TO 100000. fifty-four per-
cent; 100000 to s1,000,0O0, ffty-six
percent; $1,0OO00O to S5,0O0,00O, sixty
percent; above $5,OO0,O00, sixty-iye
percent.
Comparing the new taxes with the
present, the married man with an in
come of $500 year pays $40 tax
under the present law and will pay
$50 under the new law; married
man whose income is $4,000 pays $50
under the present and will pay 1850
under the new law A married man
of $4,000 income pays $1,180 under
the present law and will pay S2,SS5
under the new law, and a married
man of $4,000 income pays $3.50
under the present law and will pay
$12,450 under the new law.
Corporations are taxed under either
the excess profits or war profits, ac-
cording to which rate yields the most
money to the treasury in each indi-
vidual case After the war profits or
excess profits tax the corporation
must pay an Is percent tax on its
net incomes which remains undis-
; tributed and II percent on the income
distributed in dividends.
Interest on government, state and
municipal bonds as well as dividends
from other corporations are exempt
from this tax.
The war profits tax Is based on the
difference between what corpora
ton made this year and what it made
in 1911, 1912 and 1918. Exclusive of
a fiat exemption of three thousand
dollars, the corporation must pay so
ipercent to the government.
If the corporations profits were
less than 10 percent during the pre-
war years they are allowed an addi-
tional exemption of 10 percent before
the war profits tax becomes operative.
The excess profits tax allows a fiat
exemption of $4,000, plus an exemp-
ton of s percent. Profits between s
land 10 percent pay a rs percent, be-
tween Is and 20 percent a fifty per-
cent tax and above 20 percent 40
lpercent tax.
Experts estimate that 80 percent of
the corporations of the country will
pay under the war profits tax and 10
percent under the excess profits tax
Income and profit taxes are payable
in three ms tallments, March Is, May
10 and July Is. Liquor taxes are
practically double the present rate.
Two new minor taxes added late in
the sessions of the ways and means
committees are rates of 10 percent
receipts of sightseeing cars; percent
on receipts OF taxicabs and rates IN
narcotics. This late tax is designed
not only to raise revenue, but to re-
place provisions of the Harrison dru
act knocked out by the supreme court.
The court has ruled that the provi-
sions will be legal if they are part
of a revenue bill.