The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1919-02-10
TAX BILL LIKELY
TO PASS THIS WEEK
No Changes Expected in the
Measure Which Has
Been Reported
6 PER CENT TAX ON
INCOMES OVER $1,000
Luxuries of All Kinds Will Come With
in its Provisions-Large Revenue Elk
pected from Corporations That Have
Benefited from War Contracts.

IN us ProVlSlonS-lIarge revenue LIZ
pected from Corporations That Have
Benefited from War Contracts
WASHINGTON, Feb. 10.-The war
revenue bill, which was submitted to
the house of representatives on Thurs
day, il is believed in administration
circles, will be passed without altera-
tion before the end of the week. 1t is
expected that the bill, if it becomes a
law, will return a revenue, in 1919 of
5000, 100000, the largest amount in
taxes ever raised in any country in
the world. The bill provides for tax
ON individual incomes, on the incomes
of corporations and partnerships, on
estates, on railroad tickets and insur-
ance, on cigars, cigarettes, tobacco, and
the manufactures thereof, on admis-
sions to places of amusement, on lux
uries, including automobiles, motor
cycles, pianos, organs, player pianos,
monographs, sporting goods, chewing
gum, cameras, candy, firearms and am
muniton, on yachts, motor boats and
toilet soaps.
1t also provides for special taxes on
domestic and foreign corporations, on
the business of brokers and those deal
ing in exchange, bullion, coined money,
and bank notes. on the business of
pawnbrokers, ship brokers, custom
house brokers, proprietors of theatres,
museums, and concert halls; on the pro
prietors of circuses, and on every build
ing, space, tent or area where " feata
Of Workmanship, acrobatie sports, or
theatrical performances, not otherwise
provided for in the bill " are held
1t also provides for a stamp tax on
bonds, debentures, certificates of stock
and of indebtedness, and on the en-
ploymcnt of child labor. The BILL
when it becomes a law, will reach the
big and little incomes of individuals
and corporations, and while it is true
that the largest incomes are hit the
hardest, it will be difficult for any in
come owner to dodge or escape the pay
mcnt of the tax.
IN repect to individuals, $1,000 of
every unmarried man S income is ex-
Cmpt from taxation, and $4,000 of the
income of every married man. On the
first $4,000 of every individual taxable
income, the tax is fixed at 6 per cent,
while the tax on the balance of the
taxable income is fixed at II per cent
In addition to the normal tax, surtaxes
are levied upon individual incomes, be
ginning with / per cent of the amount
by which the net income exceeds $1,000
and running up to a surtax of 65 pei
cent of the amount by which the net
income exceeds 81 100000 For each
calendar year after 1918, and so long al
the measure is in force, the normal in
dividual tax will be per cent, with g
tax of 4 per cent of the net income il
excess Of credits on the first $4,000 OF
taxable income.
AS to corporations, the bill provide.
that, for the calendar year 1918 they
shall pay II per cent of the amount OF
net income in excess OF certain credits
and for each calendar year thereafter
TO per cent. In addition to the norma
tax, certain corporations must pay wa
profits and excess profits taxes, as TIL
individual must pay surtaXes. The i'm
position of the war profits and eXces
taxes is regulated by the terms of tire
brackets. The first bracket provides 70
a tax of 30 per cent of the amount 0
net income in excess of the excess prof
it Is credit, determined by Section 81
of the bill, and not in excess of 20 pc
cent of the invested capital.
The second bracket provides for tn
levying of s. per cent of the amount c
the income of any corporation in eXceS
of 20 per cent of the invested capita
The third bracket provides for the lev!
ing of tax of so per cent on I'll
amount of the net income in excess {
the war profits credit; determined III
der Section 81 of the bill, if the SUI
exceeds the amount of the tax compute
under the first and second bracket
For the taxable year Of 1919, and eac
taxable year thereafter, there shall
levied a tax on the income of every co
poration in an amount equal to the su
of 20 per cent of the amount of the NJ
income in excess of the excess prof
credit, determined under Section 3l2
the bill, and not in excess of the i
vested capital. The second bracket all
provides for tax of 40 per cent on Il
net income of a corporation in excess
20 per cent of the invested capt.;
There is special provision under L
second bracket for determining the t;
on corporations having a net income
more than $4,000, which secured Go
eminent contracts between April
1917 and November, 1918.