Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-12-28
coNscRlpTlNe PROFITS,

reads the new tax bill which has passed
both houses OF congress and is now In
conference he will discover that the
bolshevit<i have very little edge over
southern democrats in the American
congress. Many a business man whose
investments are In corporation enter
prises will have half or more Of all he
earned this last year taken away from
him In next years taxes.
The new bill begins with normal
tax OF IL per cent upon the profits OF
corporations. Then II adds an extra
tax Of 80 per cent upon that part of
corporations profits which exceed
per cent upon invested capital and
$4,000 but do not exceed 20 per cent
upon invested capital. third tax
OF so per cent Is added on all prohts
which are in excess OF 20 per cent upon
the capital invested. After all these
taxes are added together II they do not
exceed n tax OF so per cent upon a cor
pordtlONe war pIoulS liS va PN'
must pay on the basis of the war profits
tax but if these other taxes do exceed
the war profits tax then the corporation
must pay on the excess profits method.
Wnr profits are defined to be those
protits which are in excess OF the nor
NAL or average prJ-fts for three years
of pre-war period.
After all these taxes have been paid
by the corporation If there are any
earnings left they may be paid out I"
the stockholders and then the tax COL
lector begins again on the same earn
ings collecting taxes upon the income
of the individual.
Every individual is allowed to deduct
g. 900 If married and 5000 for each de-
pendent child under IS years OF age
and upon the next $4,000 of income
above this exemption he pays per
cent normal tax and upon all income
above taht he pays II per cent normal
tax But that is not enough. There
must be sur taxes in addition to nor
NAL taxes on income.
The specific exemption for being
married and having dependents IS dis
regarded in applying sur taxes which
begin after the first $1,000 of income
with / per cent extra for the next
1000 of income and go up at an as
cending scale Of an additional l per
cent for every $4,000 of income until
rich men must pay % per cent plus Il
per cent or 35 per cent on the last $4,000
of a SOC, 900 income or 65 per cent plus
IL per cent, a total of Il per cent OF
all income above 100000 per annum.
Even the $40 900 man will have to sit
up and take notice for his income In
corporation enterprise will be mulcted
for the same excessive taxes upon cor
poration profits before he gets any
dividends and then he must pay per
cent plus IL per cent, or Is per cent on
the last $4,000 Of his income not in ex-
cess of $4,000 per year and / per cent
extra on every $4,000 Of income on up
the scale of sur taxes
The revenue bill which will become
the law very soon seeks to raise six
billions Of dollars IN one year to pay
on a war debt Of twenty-four billions
or whereabouts. The southern con-
gressmen in power knowing that most
Of these taxes will fall north Of Mason
and Dixons line have no thought OF
spreading the war debt out over a
period of many years but purpose to
soak the business men Of the north
while the south is in the saddle. When
the new congress convenes it may be a
long, long time before the south can
tax the north again for the eXtTavds-
ances and waste Of democratic ad-
ministration.