Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1919-03-02

February 10, on tho gath bccamu
a law. President Wilson signed thip
: bin Immediately on his arrival last
Tuesday when tho bill automatically
became "A law,
This bin is estimated 10 raise
about t6,OS6. .000,0 In tnxcs or
about sl,716.00O, 900 more than was
raised In 1917.
Tho, Income and war excess profit
taxes are expected to reach t.7l3.-
00o. 900 or about 81 .i63 200 900 more.
than was raised from these same
taxes In 1917.
About 81 .373. 900 900 will be raised
from special excise and mlscellan-
eous taxes.
Both the normal and surthx has
been materially increased over 1917
and the total normal and Hurtax uD
to $4,000 has been increased 10
about double.
The rates on tho excess and war
excess profit taxes have also been In
creased, ana II Ia estimated that Tho
average corporation will pay "A llttH
over twice thH amount OF taxes they
paid IN 1917 ON tho same income
However. each individual case ar.
fers In the amount Of the average in
crease. invested capital and pre- war
profits entering into the situation
very materially
For "A comparison, n corporation
= with n 100000 invested capital aud
$4,000 net profit paid In 1917 u
tax OF slO.70s The same corporation
with the samo profits will pay IN
1918. IN their pre- war profits were
less than o per cent OF their invest.
ed capital, t2J, COS ana II their pre-
war profit was 90 per cent they will
pay tl6,06i, II II was partnership
or four equal partners with the came
invested capital and the same profit,
instead OF n corporation the total
tax for 1918 that the four partners
would have 10 pay. would bo 1920
or ti,235 each.
Tho payments are 10 be mnde In
four installmcnts; one fourth AZ the
time OF filing returns (which In
March 4 3, for calendar years. and
one-foeth In three six and nine
months from the time returuSfs filed
The law states that whore an OK
tension OF time. In which TO file re-
turn has been granted at tho request
OF ihe taxpayer. interest will be
charged at one half Of | per cen;
per month, from the time n would
have been due II no extension had
been granted.
The income and excess profit see
tions OF the law Ia retroaciSel to
January l. 1919 and the blanks for
corporations and for individuals with
INCOMES OF over 81, 900 will not be
distributed until about February 20,
and no general extension OF time will
be giycn for filing the calendar year
returns due March Jb, The treasury
department. however. on February
ID issued n regulation which will
serve for all practical purposes as
an extension for 4b days.
This sregulation gives corporation
permission TO make a rough estimate
on the tax due, and detach the letter
OF frremlttance which In part OF the
new combined income and excess
profits tax blanks, and send same
with check for one-fourth OF the to-
pleted return is made up. adjust
mGnts can be made OF any differ
ences between the estimated amount
paid on the first installment and the
amount that should have been paid
according to the compIeted return.
A statement In. writing giving the
reasons for asking the extension of
time must accompany the remittance.
individual taxpayers will be given
the same privileges whenever the ex-
tension In really necessary, There IL
. a provision In this new law thar
where the commissioner shall ex-
emine the return, that any difference
In the favor Of tho taxpayer shalt be
Immediately refunded, and any
amount due the department shall be
paid on the collectors demand
III the. collector increasea tho tax,
and the under statement was not due
ito any fanlt OF tho taxpayer. there Is
no penalty, but N u was due to the
taxpayers negligence. but without
intent to defraud, there shall be
added a tax OF & per cent OF the total
amount OF tho deficiency, plus 1 per
cent interest per month on tho
amount OF the installment deficiency
from the time each installment was
due.
if. however. the under statement
was made with fraudulent Intent,
there shall be added as part OF the
tax so per cent OF the amount OF the
deficiency,
Indi ,iduais.
Individuals are not subject 10 the
war excess profit tax, as corporations
only are subject TO these provisions
under this bUl. In 1917 individuals
and partnerships, az we'll as corpora
tions. were subject to the exceSs
profit tax
The exemptions are practically tho
same as IN igl7---tl,000 for a single
person, $4,000 for "A head of'a family
OF Inhfleu pciboH, ana NsVV euul-
tional exemption for each minor
child or dependent
The normal tax on the first 81, 200
above exemptions II 6 per cent. and
all over that amount l2 per cent,
The surtaN starts at $1,000, the
same as In 1917. but the rates have
been considerably Increased,
The following few Vmparsons
uiil show the increase N the total
normal and surtnx OF 1918 over 1917 |
CON incomes received from salaries,
r~nts. interest and profits, but NOT
from dividends. When part OF the
income is derived from dividends, the
tax will be less than this table for
ividends are exempt from the norman
tnx).
Based on 1000 exemption;
Amount, 1917 1918.
8 100000 : 5000 s $4,000 |
100000 36h.ii $1,000 /
100000 l.lSO.Oe $4,000 /
100000 2.SS0.00 4,S36.00
100000 3bS0.0O $4,000
100000 B,lS0,00 100000 |