The Washington times., 1919-02-06
TORAISE IN TAXES
S6,OOO,OOO,OOO

WOJOOOIOOOIOOO
Continued from First Page.)
mines. Because of the hazards and
the rapid depletion a special deduc-
tion for depletion and improvements
/ is allowed. 1t is based on the fair
market value in the taxable year.
Paid in InstaIIIhents.
The bill allows income taxes to be
paid in one or four installments. as the
taxpayer chooses. The first INSTALL
ment is due when the return is filed.
the second, three months later, the
third in six and the last in nine
months.
War and excess profits tax:
Provision is made for both war
and excess profits tax in the present
fiscal year, but after that the war
tain specified cases where war con-
tracts run over into later years.
The excess profits tax for 19IS-1919
is so per cent of profits up to 20 per
cent and Go per cent of all profits
over 20 per cent. Before figuring this
tax, the taxpayer deducts from his
net income $4,000 plus s per cent OF
his capital. as an excess porfits ex-
emption. Concerns making less than
$4,000 a year net income pay no ex-
cess profits.
For 1920 and thereafter. the
rates are 20 per cent Of profits up 70
20 per cent and 40 per cent OF all
profits over 20 per cent
The war profits tax for this fiscal
year is the difference between so per
VnF - h. 4
Quoting the war profits credit") and
the amount OF the excess profits tax
figured under the preceding pro-
vision. The war profits provision. one
OF the most involved in the bill. reads
as follows:
Concerning War Profits.
"The sum, If any. by which so per
cent OF the amount Of the net income
in excess in war profits credit, ex-
ceeds the amount of the tax computed
under the first and second brackets"
((The excess profits tax provision.D
The war profits credit is $4,000 plus
the average net income for the pre-
war period .(19H-l2-13) plus 10 per
cent of the difference between the
average invested capital OF the pre-
was period and the invested capital
in the taxable year.
Estate tax: This provision levies
a tax beginning at 3 per cent on es-
tates not over $4,000 and running to
40 per cent on those over $4,000, 900.
Estates OF soldiers, sailors and ma
rines killed in the war, or who die
within one year from injuries sus-
tanned in the war, are exempted from
payment OF this tax.
Transportation taxes: These re-
IN N Ia re1- - 10 L.
3 per cent on freight, foreign or do
nestle; per cent Cpresent rate 10
per cent? on parlOr car chairs aud
seats, berths or staterooms on boats
or trains; s per cent Cpresent rate
per cent? on oil carried in pipe lines.
Taxes on Telephone.
The tax on telephone and telegraph
messages, which now is . cents on
each .cessage costing Is cents or
more, becomes } cents for messages
between II and 80 cents, and 10 cents
on all costing over so cents. \ IOI
per cent tax is put on leased wires. |
except news wires.
Insurance taxes remain as now
S cents on each 800 of life insurance,
with two exceptions. industrial pol !
icies below $500, which arc taxed 40
per cent OF the first weekly or 20 per
cent OF the first monthly premium,
and group insurance" covering % or
more persons. which pays cents for
each 500 Marine. fire and casualty
insurance pays ! cent on each dollar.
Beverage taxes: On distilled spirits, !
SG.4O gallon, instead OF the IS rate
adopted by the House; il in bond. |
$500 gallon, instead OF the $40
rate. Perfumes containing distilled |
spirits, $l.1O, gallon, instead of !
$3.50 in the House bill. \ tax OF so !
cents a gallon is put on rectified |
spirits or wines, and a 10 cent floor |
tax.
Beer 80 n BnrreI.
Beer pays Sc n barrel Still wines. !
including vcrmOuth, containing less
than II per cent alcohol, 1G cents a |
gallon; II to n per cent alcohol, 40 !
cents; II TO 81 per cent alcohol. 81.
Wines or brandy withdrawn for
fortifying, 60 cents a gallon: cham |
payne, y cents a half pint; artifici- |
ally carbonated wine, Is cents a half
pint; liqueurs and cordials, 6 cents u !
half pint.
Cereal beverages Cnear beer), IS
per cent OF the selling price. The
House tax was 80 per cent Soft
drinks. 10 per cent of the sale price:
House rate was 20 per cent. Mineral
and table waters, > per cent Of the
sale price.
After May !. 1919. a tax OF / cent
is levied on each 10 cents charged
for ice cream, ice cream sodas. sun
daes and similar refreshments, II
eaten where sold.
Tax On Tobacco.
Tobacco and cigars:
Cigars weighing not more than
three pounds the thousand, 81 80 Der
thousand blouse rate So: more than
three pounds and retailing for 5
cents, 81 per thousand; selling from
) to 5 cents, SO: to Il cents. 50.
ID 10 20 cents. ST.; over 20 cents, SIS.
Cigarettes not over three pounds a
thousand. So: over three pounds.
ST.20. Tobacco and snuff, Is cents a
pound. Cigarette papers in Books OF
% to 90, y cent; 80 TO 100. / cent
over 100; u cent for each 90. tubes
cent on each 80.
Admissions and dues: The con-
'erces cut to 10 per cent the 90 per /
,ent theater tax they had earlier ,
lecidcd on. After April ], 1919, the
az is / cent on each 10 cents. Spe.-
IlatOrs who sell tickets at an excess
Il 80 cents over the regular price
must collect and pay a tax nS 10 per
,ent or the excess; il the axcess Is
,ver 90 cents, 90 per cent tax