The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1919-02-14
L. C. MARTIN.
UNITED PRESS STAFF CORES
PONDENT

UNITED PRESS STAFF CORES
PONDENT.
Washington, February 6.-ConCer-
ence report on Americas six billion
dollar revenue bill. greatest in this
nations history was presented 10 the
house today by Chairman Kitchin of
the ways and means committee
In addition TO raising about $6.000,
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
$500, 000,0 900.
Following are the chief provisions
of the bill,
Income tax on individuals.
The normal income tax for 1918 is
per cent on incomes up ito $4,000
and II per cent for higher incomes
and for succeeding years s per
cent. The present normal is 4 per
cent. Exemptions of $1,000 for a
single person and $4,000 for a mar
ried one. with 5000 additional for
each dependent under is, remain as
at present.
The income sur taxes begin at one
ger cent on incomes Of $1,000 10 &c.
600 and run to 65 per cent on income
over 81 100000.
Present sl,r-tax rates are lower on
the middle ard higher incomes, the
highest rate in the present law being
so per cent on incomes OF moro than
81 .USTs550.
Partnerships and personal service
corporations paw the tax as indiyid-
uals. not as corporations.
The corporation income tax fer
1919 is l. rer cent and thereafter ten
per cent. The present rate is six per
cent.
Special provision is made for cor
porations owning oil or gas wells or
mines. Because of the hazards and
the rapid depletion and Improvements
ton for depletion and improvements
is allowed 1t is based on the fair
market value in the taxable year.
The bill allows income taxes to be
Maid in one or fou: installments as
the taxpayer chooses. The first in
stallment is due when the return IS
filed. the second in three months, the
third i'm six and the last in nine
months.
War and excess profit tax:
Provision is made for both war and
excess profits taxes in the fiscal year
hut after that the war profits taxes
comes off except in certain Speclhea
cases where war contracts run over
in later years.
The excess profit tax for 19lS-lSl9
is 20 per cent of profits up to twenty
Per cent and 5 per cent OF all prom
over 81 per cent. Before figuring this
tax the taxpayer deducts from his ret
income three thousand plus eight
per cent OF his capital, as an excess
profits exemption, concerns making
less than three thousand dollars a
year net income pay Ito excess proh'@.
For 1919-192O and thereafter the rates
are 20 per cent Of profits up TO ~
Der cent and 40 per cent of all proi
It's over 20 per cent The war profits
tax for this fiscal year is the differ
cnce between so per cert OF the ne'
income after deducting the war prof
its credit and amount of the excess
profits Profits taxes figures under the
preceding provision. The war profits
provisions, one of The most involved
in the bill reads as follows:
"The sum, il any, by which eighty
rer cent of the amount of the net IN
come in excess of war profits credit
exceeds
ed under the first and second Drack-
cts lat excess profits tax proVi-
siops)"
"The war profits credit is $4,000
Mus the average net income for the
pre-war period. Q911-12-13-) plus
fen per cent of the difference between
the average invested capital of the
Messengers fares except Communication
;ol, OF OIL
(present rate ten per cent? on parloi
cars chairs and seats. berths or state
rooms on boats or trains; eight rel
cent (present rate five per cent? CT
oil carried in pipe lines.
The tax on telephone and tele-
praph messages which is now five
cents on each message costing fifteer
cents or more, becomes five cents
for messages between II and so cents
and 10 cents on all costing over 5t
cents. A ten per cent tax is put or
leased wires except news wires.
Insurance taxes remain as now.
Beverage taxes:
ON distilled spirits, 500 a gallon
instead of So. 90 rate adopted by thi
e house. if in bond ST. 20 a gallon in
stead of 81. 40. house rate. Perfumes
containing distilled spirits 81 10
wine. $1.O0 gallon instead of $3.50 il
Ire house bill, tax of thirty cents
gallon is put on rectified spirits Oh
wines and fifteen cents gallon iloo'
tax. -,
Beer pays 5000 barrel. Still
wines. including vermuth containinf
less than IA per cent alchohol. i
cents a gallon: IA to Il per cent al
cchol 40 cents; q TO "a per IN