New-York tribune., 1919-02-06
Business to Learn
Fate at Hands Of
lax Makers To-tla,
revenue Bill's Introduction
IN Congress Expected TO
Reveal Many Features
Hitherto Kept Secret

WASHINGTON, Feb. 5.-At Il
CLOCK tomorrow morning American
business will know it's fate. The
house and Senate conferrces will thor
present to Congress tho biggest bill
ol taxes that this or any other natio,
was ever called upon to pay in 2
single year. Owing to the secrecy
that has been observed for tvo wee,,.
interest among those who will have To
pay large quotas of the total bill has
reached the boiling point.
Inc general outlines Of the con,
promise measure are fairly we'll
N"o"h' out some Of the sections that
nave been held back have such an
important bearing on what has b,en
maze public that even those persons
"io nave Kept the closest watch on
'"e con1errees are more or less in tbe
oarK. The object of this secrecy was
10 permit the conferrees TO comr1o+o =
,"cir work before the wrath of tho
taxpayers could be turned loose IN
'"en' with the possible result that tbev
would have 20 revise some of the con-
cius'ons so laboriously attained
Inc Dill imposes taxes of abont
so,?oo,ooO,0O0, according to the closest
;seir'ates now available, PAYABLE d,rS
na6 lnG nS. iSl9. and of Approximately S4 oon
oUo'ooo lor ensuing years. The bulk of
th tl'ese huge amounts will como from
coes cae inulvlduai, corporation and war eX.
N0'' proli's provisions of the bill.
individual Income Tax
G me indlVldual income tax rates oro
nAeu at per cent for income of 81 ono
~ ~. less and II per cent for income ehoS,o
.laC amount, the taxable income bo;ro
tile r net income less dividends roce;,,a5
rom domestic corporations. interest
1nl 9,l oplIgations of the United States a,, =
var rlnance Corporation bonds tha
i'; p;elsohal exemptions of $4,000 for mar
so ll.u persons and $1,000 for single per-
oanh oa.h d anu lhe exemption of $500 for
ratas ratn uependent of the taxpayer. These
;nco appry TO 1918 incomes. For the
hoonne +la VI i9l9 and subsequent wears
spectlvely. Nei''' ic
me surtaX payable pv individuals
only is imposed on the whole Of ~ 20
neo income and ranges from ncr cent %
~ cne amount of the net income in cx-
cess or $4,000 and not over Sc ooo ~,
20 20 90 90 per cent of net income in excot ts
of Sl'ooo,00o. In figuring the amount
~ ba 'ne SurtaX person Will pay it viii
oe necessary to separate his income
INTO the several steps it NAV emhrano ,e
III ealcuiale the amount for each sten.
ddn dhuS person with an income of 81 +. .
eeoo ooo,ooV a year will pay a surtax Of
9s2o3' 'olo. His normal tax will be S110
o-o' making his total $7o3,o30.
corporation and Excess Profits
me corporation income tax j. Gxoj
ao II per cent for 1918 income and IN
per cent tor 1919 and thereafter. me
war excess profits tax for 1919 i,can,o ne
Is lNed at 20 and 40 per cent for the
ewo steps of excess profits and so ner ~
ceht Oh the profits arising from var
conlracts with the government.
No official announcement bas hoo,,
made of the 1918 income war eycesn ee'.
profits rates, but it is understood tbaf
the excess profits steps are 30 and "ss SS
per cent, with the war excess nrofi4o r,,'oP w.
tax established as so per cant pfA'eS oS
profits IN excess of certain dednctione
these being $4,000 and the avcrane el1eS'
profits for the pre-war period %