Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1918-01-08
Amount
$S,SSO S9.92(
Sl2, 500 $4,000
$16,1S0 $16,220

/ graded scale. The law fixes the per-
centage based on pre-war years
1911-12 and 13, at not under seven
per cent. and not over nine per cent
en- invested capital, with the
chances of eight per cent being
ilNed as about the proper amount
by the revenue bureau.
The term invested capital" has
not been fully explained. and as
yet lawyers disagree.
May Give Definition
The internal revenue bureau will
probably define invested capitar' in
the near future.
Where income is derived from
stocks and bonds or other invest
ments the excess war profits tax
does not affect the individual.
Inc excess profits tax follows with
a nat rate of eight per cent. on all
| incomes over $4,000 of individuals
from professions, occupations.
trades, businesses. where no capital
| is invested.
The law eXempts all legitimate
expenditures with view of pro
duclng income; the law ENCOURAGES
partnerships and makes the liberal
exemption of $4,000 plus moderate
salaries; the law recognizes the re-
iatonship of blood and marriage
49, 80 SNpPOlN tNlGHueu DN unmAT-
lleu 10 uependantS; III. taN re uyoS|
all corporations organized without
capital for charitable purposes, etc.
ETC., from all income take; the law
permits the income tax payer to file
ms own Schedule-which if not cor
rectly prepared will be returned
with the corrections needed indicat-
ed-the sooner the schedule is filed
llS better. iOr there ~ man,
lICn that will ha
rCctlon, so many thousands coming
under the tax for the first time
Ihe law will aid the honest and pun-
ish the dishonest
1t is fortunate that as CAPABLE n
man as Commissioner Roper is at
the head of the internal revenue brI-
foau-a man especially fitted for the
position. 'N0
Word as TO Corporation Tax
While it is not the intenti"n q,
enter into "a consideration of cor
poratlon taxes in this series of ar
, out of place. ''o' 'o
The expert of one of the largest
trust companies was requested TO
state the five leading questions
Whlch he was called upon to answer
ana the answers thereto. He an
swered describing sections of the
law, which may be referred to bv
any one sufficiently interested:
VINO is subject to the excess
profits tax?
corporations, partnerships and
individuals. Sections 2O2-2O9.
piled? ' '''A op-
Where they have invested cap
ital' corporations on net income
less exemption and deductions. as
described in sections 202-2O9; part
nersh1p and citizens on net income
less deductions and exemptions. as
described in sections 203-2O4. Where
they have nominal capital: Corpor-
ations. partnerships and citizens on
net income less exemptions and de-
ductions, as in 209.
rs the income received as salary
or wages subject to the excess prof
its tax?
"Yes."
Can member of a partnership
charge a reasonable sum as salary?
Yes"
How is the tax figured?
where there is an invested cap
ital the tax is figured on a scale
section 2O3-no tax being due until
entire deductions and exemp ptions
are made.
Where the capital is nominal.
take the benefits of exemptions and
deductions, as allowed in 2O9, and
hgure eight per cent. on the bal
ance.
In taking inventories of stock
cost price must figure"
All taxes are payable at any time
after assessment, and at all events
not later than June Is. Under a
new provision in the act of October
3. 1917. subject to regulations to be
presented by the Secretary of the
Treasury, payments may be made in
irstalments. ~ advance OF assess
ment, with discount of three per
cent. In certain cases of payment be-
fore June Is.
(End of series)