New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-09-04

Tot,lE Is, .rSsss. 49,. 900
This. sstrrpnsndSsNss ruvasrxn bill lis 81
uovelry, not emily i'm iats gr,tatttlr,ess, ltut
also lit titnt, lit rsssrassrutEs tlha nnast axf-
varcssH ants1nrvt SO tfsn- n,rixfr by amy mr.
ton i1rNSulMusE i'm tiha p1,aAesrt war TN
make tsaxasiufr pHy IL lEanga pnupurtimr
af WIZ egpaspiisitt lrues ass taiay are i'm
cu1red.
The nnodhrr su}tnnI OF eunrmnAn
gFforrgirh ss,,o11gdSr supports the propp~
Sitio1r tifat, wssa,S safn11lH be- pniIt fd1> i'm
very large ,nnassunes Try o,lr:rer1tt tassatinll,
instead eff by lhna1as Tlta. Oil iitef4 was.
TO nralhyY prEnrittT hassur q lhrg@ part Of
the harsxthsr tatnu11.zst ln11e.stiinn>- lhaarsi
suit 1t is NOW gazrRnallsT s,efsn1sni0ad THAT
tirere' liz NOD ssn11r thing ae making pna--
terity pny- fnr ~ war extraordinarily. a11ris
that TIM d1ffe1urrne- hat1wesn lna,rH- ami
taxes i1r ff11a1rIriirg wan iss chiefly o11n,
US to wilatt individuals shall p1sy fur,
the war irr tatee FIRST i1tssanun.
The war is arta1allg paid for as
fought either wsav, but tftere ane, l1rii1ri
Gus effeutss Of aasnassiMe lhaTrB SIS ap1n,-
pared with tE1zEss,. sslc}n ass inffhtdu1 amt
hie.r princes. THAT eaa oor1niiihs>ad as; do
trimming t5tfe w1fsthIrn Of paying for tltn
With Gus,ra11ft ttsgNfs.
Frasnctr aHrd G5Is,tnrsfryy ssnn Y1ayi711r fdo:.
thu W.T. rrlraatinaIsg- INIT eat al lw yaaes-
e,t tsscx,airar;; English, lis rsaisfrg about
II par tren1 OF tdise w;ar hilll li1S ttSsssss,
IND now. ny tine NEW nawus1a,e hill. ti1s
JlrIrItd SSrares r1mipnxss tD nsiis1 afrxs,~
tlrIrd iin tiffah way. Ufha a}mKef gppas;ttiinn
l., ,znI1,n51lie to- thiis hin is based on tim
h,slss THAT Il goes tnep far i'm This raA
sTegt
.Arru7 Officers pramilerad
Nz-Gs-'4ss- ting fea--uu-ss of THO bin that
have rass Esa<an specially cnrnan en4ps OF.
d, .herto rs one that provides that army
'siicssr- GIN duty abroad need rot in
e-19e- II making their RETURNS for tax
~@cn, tlaelr pay up co $500 in figuring
their gross INCOME. which amounts to
ling thezn am exemption of S4,5CO or
$500, as against the $1,000 and ST.
eco Of the stay-at-holnes
Another feature of this kind is
PROVISION that war industry plants may
rave an amortization amounting to as
much as 25 per cent annually deducted
rom their gross incomes in order to
cftset the obsolescence of plants that
may be partly or fully useless after
the war.
AS compared with the present law,
the greatest change in principle in the
proposed law is the practical substitu-
ton in the cases of nine tenths of the
corporate industries of the country of
the new war profits tax for the excess
profits tax of the present law.
The latter is retained, and its rates
are higher than in the present law; but
as it is to be applied as an alternative
to the war profits tax only where it
will yield more, fully 80 per cent of
all corporations will pay under the war
rrofits plan, which practically calls for
50 per cent of profits in excess of those
of peace.
The excess profits plan, on the other
hand, is applied to all profits, whether
greater or less now than before the
war that are more than per cent, plus
small specific exemption on the in
vested capital.
General Provisions
In discussing the general provisions
OF the income tax the report says:
The dividend provision makes any
distribution made by a corporation out
of Its earnings or profits accrued since
February %, 1913, and payable to its
shareholders or members, whether IN
cash on in other property or in stock
OF the corporation, subject to tax in
the hands of the shareholder, the same
as under the present law
1t also provides that any distribu
ton made in 1918 or subsequent years
shall be deemed to have been made
from earnings or profits accrued since
February %, 1913. The present law
provides that dividends distributed to
the stakeholder shall be taxable to the
Individual at the income tax rates in
erect in the year in which the dividend
IS received, unless the corporation dis
tributes more than its earnings for the
uonal amounts SO distributed are tax
able IN the hands of the individual at
tne rates in effeca during the year in
which the corporation earned the same.
How All VIII Feel 1t
The man in the street" will be
most noticeaby affected by the in
creased tobacco taxes and the higher
excise and new luxury and semi
luxury taxes, which will reach him
not only indirectly and often, but in
many cases will reach him directly in
the form of tax that he will pay as
such at the time he makes his pur-
chase
thus when he buys soda, tube of
tooth paste, piece of shaving soap, a
shlrt that costs more than SO, pocket
book that costs more than $3.50, a
necktle that costs more than 81, an
umbrella that costs more than 81, or
hat that costs more than SIS, he will
Pay directly and on the spot tax of
10 or 20 per cent
Similarly, his wife will be reminded
of. the war when she seeks to purchase
candy or to replenish her wardrobe or
toilet liable, and both of them will be