The Coconino sun., 1919-02-21

delayed war revenue Dlli, tne Alhei ican people were presented with their prospective tax budget for 1919 and ensuing years-something over S6,- OOO,O00,O00 this year and $4,000, ,OOO,- 900 the year after, subject to the re- vision of future rates by the next congress.
 The conference report, presented to the house by Majority Leader Kitchin is regarded as assured of adoption by both house and senate and of approval by the president
 Except for slightly increased war excess profits rates for 1919 and cor porations income tax rates for 1920, virtually all the rates, as revised in the bill passed by the senate are ap- proved. Rates of the senate on trans portation, beverages, cigars and to- bacco, amusement admissions, club dues, luxuries and semi-luxurles, stamp and special taxes all substan- tially were adopted by the conferees, while the house rates on estates and insurance were reinstated.
 Principal Rate Increases.
 The principal rate increases agreed to in conference were to raise the cor poration income rate for 1920 from S' per cent to 16 per cent, and an in crease from 60 to 65 per cent in the second bracket" or sliding rate, on corporation excess profits for this year. The so per cent war profits tax for this year was adopted and, upon insistence by house conferees, extended to 1920 but made applicable next year only upon such profits from government war contracts. The ex- cess profits "'bracket" rates of 20 and 40 per cent for 1920 also were ap- proved.
 Virtually all the so-called relief provisions designed to prevent hard ships in imposition of the corporation taxes were adopted.
 In the important income tax sec tion, the bill retains all senate rates, normal and surtaxes, including that of 12 per cent on corporations ln- come of last year in excess of credits allowed, but fixes the sub- | seauent rate at 10 per cent.
 Tax on Individual Incomes.
 The IF per cent normal rate on individual incomes earned last year and the per cent rate payable in | 1920 are retained, with individual ex- 1 emptions of 5000 for single and $2,- f 900 for married persons, and an addi' l tional exemption of S200 for each de- { pendent minor.
 Also adopted are provisions that individuals shall pay only 6 per cent this year, and 4 per cent thereafter | on the first $4O00 subject to tax above exemptions. The senate indi- vidual surtaxes, ranging from one per cent on incomes between $500 and S6000 to 65 per cent on more than S1 100000 also were approved.
 Important Riders" Adopted
 Of the important general legisla- ton and riders" the conferees adopt ed the following provisions:
 Levying a prohibitory tax on pro- ducts of child labor.
 Restoring pre-war postage rates on letters and postcards July next;
 Providing pay bonus of S6O Tor all persons in the military establishment, officers and enlisted men alike.
 Extending the Reed "bone dry" pro- hibition law to the district of Colum-
 Increasing from S25 to 5000 the tax on those dealing in intoxicants, "stills" in prohibition terri tory. |
 For taxation of salaries of federal officials including the president and judiciary but not of state officials.
 Submission of all government con- tracts by contractors on demand of internal revenue commissioner.
 Oil Prospectors Exempt.
 For exemptions of 20 per cent to oil prospectors. |
 Establishing an advisory tax board of six members in the treasury.
 Restricting sale and use of narcot- les by strengthening the Garrison drug act.
 Among the important provisions stricken from the bill were: |
 Proposed repeal of the publishers second class postage zone rates and substitution of decreased charges.
 The so-called Thomas amendment, which proposed 100 per cent taxes on political contributions in excess of $500.
 House amendments for a federal license tax on use of motor vehicles.
 The so-called "business license" of $10 on business and professional men earning S2500 or more.
 Senate taxes on inheritances for which the conferees substituted house levies on estates.
 The house tax of two cents gal lon on gasoline.
 House amendments to tax state and bonds and other securities.
 The conferees made many important changes affecting income and war ex- cess profits taxation, rewriting scores of amendments and virtually redraft- ing a substantial part of the measure.
 Insurance taxes effective April l, at virtually existing rates, based on pol icies written were adopted.
 Tax on Beverages.
 Beverage taxes, contingent on pro- hibition as adopted are:
 Distilled spirits for non-beverage purposes, $2.20 per proof gallon, the present rate; distilled spirits, manu- factured, imported or withdrawn for beverage purposes, $6.40 per gallon,