Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1918-10-27
Tho 1918 Revenue Bill.

IlC lblo INtNtnuC Dill.
Hearings on this bill begun before
the ways and means committee OF
the house June g. The bill was
passed unanimously by the house on
September 20. Hearings begun he.
fore tho finance committee OF the
senate September G.
After the finance committee com.
pletes It's consideration OF this bill
1t will go 20 a joint committee OF the
house and senate. and will then have
TO be approved by members of both
houses, so Il will he some weeks be-
fore the bill is finally passed.
The bill Is estimated to collect
eight billion dollars in internal rev.
enue tares. or this amount, five bill
lion. five hundred million dollars Is
to he collected from income, excess
profits and war profits taxes.
This bill, as passed by the house.
has some radical changes over the
1917 bill and the following are some
OF the important changes in the
house bill:
Individuals.
The individual has only two
glasses, a normal and surtax.
Normal Tax-Last year individuals
came under the excess profits tax.
MY gfdl AiitN w lDN NNNht
the excess profits taxes. Last year
a head of n family paid no income
on the first $4,000. but on the next
$4,000 he paid 2 per cent. On all
over that 4 per cent. This year he
pays no income on the first $4,000,
but on the next $4,000 he pays 6 per
cent. On all over that N pays IL
per cent. The 5000 exemption for
each child and dependent person re-
mains the same as last year,
Surtax-The surtax this year starts
at $1,000 the same as last. but the
rates have been increased. about
double MP to $4,000 incomes. and
the total OF normal and surtax about
two and one-half times as much as
1917.
For example. on n $4,000 income
in 1917, the total tax was about
1900 while In 1918 II will be about
$4,000. On a $4,000 income 1t was
$3.50 in 1917, while in 1918 It will
he $4,000. On a 100000 income in
1917 the tax. was Sl6,lS0 while in
1918 II will be $4,000.
General-Indlvidua have been
given the right this year to deduct
entered into for gain. Individuals
Partnerships.
PARTNERSHIPS will make an income
tax return showing the net income,
the names and addresses OF the
partners and their-share OF the
profits whether distributed or not.
This return Is made merely for in
formation. for partnerships as a
whole pay no taxes. but the indl-
viduals will show on their returns
their share OF the profits from the
partnerships. This change is due to
the fact that the individuals or
partnerships are not subject TO either
the excess profits or war profits taxes
this year.
Corporations.
This year corporations are subject
to either ten excess profits or war
profits taxes, conditional on which
one will yield the greater amount OF
tax.
The normal tax has been raised
from per cent TO 18 per cent, wi&N
a discount OF 6 per cent on the
amount paid in dividends, interest
bearing Indebtedness reduced and In
in the United States obli-
gntions issued after Sept l, 1917.
(The senate finance committee. how
cent and made II flat IL per cent?
A special exemption OF $4,000 has
been allowed corporations this year
the same as heads OF families.
Excess Profit Taxes--The excess
profit tax IL practically the same as
last year. with the exception that the
pre-war income will not he taken
into consideration. Instead. a flat
3 per cent on invested capital plus
81 900 special exemption, will he al
lowed as deductions The rate Of
tax has been increased. a tax OF 35
per cent will be charged on the net
income in excess ~ deductions. and
not in excess OF Is per cent OF In
A tax OF 20 per cent will be
on the net income In excess
Of Is per cent and not over 20 per
cent OF invested capital less deduc-
tons II anv. A tax of 10 per cent
will be charged on the balance OF
net income in excess OF IN per cent
Of invested capital, less deductions II
anv.
Excess Profit Taxes-The excess
cent will he charged on the net in |
come in excess NJ the war profit de-
iuctions, plus $4,000 special exemp-
ton.
The war profit deductions on a
in business n full year
In The pre-war years. 1911. 1912 and |
1918 will be the aveREe net income |
FOR the pre-war period plus $4,000. |
pulls 10 per cent NJ additional capital
invested since 1918.
II the corporation was not In busi-
ness the whole OF any pre-war year. |
or. II its net income was less than |
10 per cent Of its invested capital, !
then a deduction on It's present in |
vested capital plus $4,000 special ex-
pmptton can be used as a deduction |