The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-02-06
Raises 6 Billions in Taxes for
the Next Year.
Chairman Kitchin Reported the
Measure to House.
GIVES EACH SOLDIER CASH
This Will Cost 100000, 600
Nurses Are Included, Too.
Workings of the Bill Are Given
lis Heavy Tax.

Washington, Feb. 6.-The biggest
tax bill in American history was sub
mitted to congress today for final ap-
proval.
When Representative Kitchins
chairman of the house ways and
means committee. presented the con-
ference report on the war tax bill to
the house. he announced it will gather
from the people S6,070,000.000 in
taxes for the fiscal year ending July
l, 1919. and in succeeding years lit
tie less than s420O,00e,0O
While big incomes and swolleu
profits bear heavy taxes. the man OF
small and moderate means has q
heavy burden.
Senator Lodge, Republican leader.
has publicly expressed the fear that
it ''imperils business" which he says
is facing a very difficult year.
Kitchin announced today he plans to
call the conference report up Satur-
day. He expects approval in one day.
The senate will probably take 1t UP
next week if Kitchin gets it thru the
house as quickly as he hopes. Senate
approval probably will take longer.
In addition to raising about S6.000.s
100000 in taxes. the bill gives every
soldier, sailor and marine and all wo-
men nurses in the American forces a.
bonus of $50 upon discharge. This
means an appropriation of more than
s400,0 100000.
Following are the chief provisions
of the bill:
Income tax on individuals: The normal
tax for 1918 is @ per cent on incomes up to
5000 and and T. T. per cent g on higher incomes.
comes up to $4,000 and s per cent on those
over $4,000. The present normal is a
Single M s person and ssooS for or snS narried one.
with $500 additional for each dependent
under is. remain as at present.
The IDc0u}a begin Mt
cent on incomes of 5000 to $4,000 and run
to 65 per cent on incomes over 81. .000.oOJ
middle and higher incomes. the highest
on incomes of more than $1.OO0,O00.
Pay Tax as individuals.
Partnerships and personal service cor
porations pay the tax as individuals, not as
corporations.
II per cent and thereafter 10 per cent. The
present rate is per cent.
Special provision Is made for corpora
tions owning oil gas wells mines.
Because Of the hazards and the rapid de-
s foT s basea
on the fair market value in The taxable
year.
in one or four installments. as the taxpayer
chooses. The first installment is due when
later, the third in six and the last in nine
months
War and excess profits tax: =
War and Excess Profits.
Provision is made for both war and
excess profits taxes in the fiscal year but
after that the war profit taxes come Off
except in certain specified cases Shere
war contracts over in later years..
The excess profit tax for 1918 1919 is 30
65 per cent of all profits over 90 per cent
Before figuring this tax. the taxpayer deg
from hs net ct ss three
cess profit, ,eo exoemption. Concerns making
1nIQ.1Q11 md
up to 20 per cent and 40 per cent of an
The war profits tax for this fiscal. year
is the difference between so per cent OF
| profits credit and the amount of the ex-
cess profits tax figures. under the preeed-
one Of the most involved In the bill, reads
"The sum. IL any. by which so per cent
| in war profits credit. exceeds the amount
Of the tax computed under the first and
| second brackets (the excess profits tag
"The war profits credit is 5000 piaa
| the average net income for the pre-wur
period t15i1- Ie-'13) plus 10 per cent q
| the difference between the average In
vested capital of the. pre-war period ana
| the invested capital in the taxable year,
| Estate tax:
A Tax ON Estates.
! This provision levies a tax beginning 81
/, running to 40 per cent on those ovef
s1o,o00.Oo0. Estates Of soldiers. sailors
and marines killed in the who din
within year from injuries sustained in
the war. are exempted from payment tof
this tax.
| Transpor. alton taxes:
1 Transportation Tax Same
These remain largely as In the present
law-3 per cent on freight, foreign or
| carrying express: s per cent on passenger
fares except communication or season
! tickets: s per cent tpresent rate 10 per
cent? parlor car chairs and seata.
s per cent (present rate per cent? on on
| carried In pipe lines.
| The tax on telephone and telegram
| messages which Is now cents on each
5 cents for messages between. II and 20
cents and 10 cents on all costing over 80
cents 10. per cent tax Is put on leased
wives, exee1t news wires.
Insurance taxes remain as now.
/ Beverage taxes:
/ Heavy Liquor Rates.
On distilled spirits $Gi0 gallon fn-
stead OF the IS rate adopted by the house:
II In bond $2-2o a gallon instead of the
distilled H aos Spirits si.1o: i" vine Ito come5.
4 tax of 20 cents a gallon is put on rectified
spirits or wines and 10 cent floor tax
Beer pays Sc barrel. Still wines. in
lcluding vermuth containing less than n
u per cent alcohol. 40 cents: q to "a per
cent alcohol. 81.
Wines or brandy with drawn fortIfyin4.
GO cents gallon. Champagne. Il cents a
Cereal beverages fnear beers) Is per
cent Of the selling price; ,. The house tai tai
Of the sale price; house rate was 20 per
Il NAV 1. 1919 tax Of / cent fE levied