Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-07-25
TAXES ON ESTATES
LEAP 80 PER CENT
Those Above $8,OOO,OO VIII Be
Assessed at IS Per
Cent.
TO PRODUCE S1OO,OOO,OOO
Exemption Of $4,000 Allowed
Residents of United States
to Continue.
10 PRODUCE s1Oo,ooo,ooo

WASHlNGTON. July IA 80 ner
cent increase N taxes on ell estates
between $4,000 and $4,000. .o0o vas
agreed upon to-day By the ways and
Means Committee Estates above S.
100000. and not ever $4,000, 900. will
he taxed 80 per cent while those in
| excess Of sl0,o0G.OOO will be called
upon 20 ray so per cent.
u l. estimated that the new rates
will produce looooo.ooo in revenue.
Experts "f the Treasury Department
wh" are assisting the committee have
estimated The revenue from the estate
taxes under existing laws will yield
sIo.oo0.ooO in the fiscal year .ndiny
June 80. 1919, 50 tha. the increased
rates proposed At to-day's session rep
resent clear gain in revenue of at
least '3o.Uoo. 600
While the agreement on tn" new
rates Is teptaiive. Chairman k!tch;u
announced they are favored by a ma
tority of the co2,mittee. They may
be changed in future discussions Of
the committee. but for the present they
Viii be written into the hill an1 used
as tn" basis for fna; determination
upon other rates which need to be
similarly raised in order to produce
the desired maximum Of eS,0oo0 200 rnh
The exemption of $4,000 allowed by
the present law on estates OF resi- :.
ieuts of the United States will b.
continued under the new law
The committee was advised to-day
by the Treasury experts that the pro
posed new rate OF IS per cent on tn.
net income of corporations. with an
I NJ
the amount OF income distributed -
share holiers- which was tentatively
agreed upon at Yesterdays session.
would produce at least 500, 100000 of
revenue
An estimate showing the anourt
that would lie produced BY ar in,r"a So
OF the normal tan rate on individual
incomes from per cent to 10 per cert
| also was furnished 20 the corr -nittee.
This ,hehSe is estimated by .he ex.
peris 30 hc caoatic Of yielding Sl.Sfs :
0No.no" Tn" two taxes together would
therefore yield s.,SeS,ooc.oso.
PROPOSED HATES FORM
WORKING RASIS Far FUTURE
The committee accepted these pro-
posed rates a.; working basis fer
future calculation, just as L. did tn:
suggested 90 Otr cent increase in thu
state INK The corporation income taX
and thoY individual income tax, ac-
cording 10 Treasury estimates. will
produce about sl.4oO.00c0r0 this year
the change 10 a lc per cent normal
tax on individuals and the IS and u
per cent tax on corporate income p:ac
tically represents a doubling nf the
revenue. The experts We're ASKED ::
few days ago TO submit statement
showing the amounts that would be
raised unde- normal individual tax
of ) per cent. and the same for 0 per
cent, !? per cent and - per cent. Th,
would he received from the 10 per c-nt
rate, and reported accordingly that
the committee could safely count upon
the sum of Sl.SiS 100000 under this
rate.
The committee decided that ii would
he unwisc 10 20 to the i2 pc" cent
Or Is per cent rate for the reason that
the deductions, exemptions and abatc
meuts would have tc be so arranged
thai less revenue might be ohtaii Ell
than under the 10 per cent rate. fu
turc calculations of the probable rate
on Individual :r comes, therefore, will
be based on 10 per cent as 4 starting
point although this figure is subject
10 change as additional sources of rev
enue are uncovered.