Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-02-06
BIG REVENUE
ACTS TERMS
Made PUBLIC
Congress Expected to Pass
Bill as Completed by
Conferees.

Washington, Feb. with the
submission to congress today of the
conterees' agreement Oh the long
delayed war revenue bill, the Amer
lean people were presentd with
t4aiF prospective federal tax budg-
Il for 1919 and ensuing years
something over $6,UOO,UUU,OOO this
year and $4,000, 100000 the year
ETtGr subject 10 the revision Of flu
tuTe rates expected TO be undertak-
oH by the next congress.
The conference report, presented
10 ne house by Democratic Leader
Hltchiu ts regarded assured Of
adoption by both house and senate
end OF approval by the president.
II thus provides the future Ameri-
can tax yield, which now is about
5G,37O, 100000. Besides this years
tax levy OF about $4,000. .0C0, 900 fur
IhCr treasury needs. to be raised by
bonds and other means, are esu-
>ateI by the treasury at about
$4,000 100000
Boost War Profit Tax.
Except for slightly Increased war
excess profits rates for 1919 and
corporations income TAX rates for
1920, virtually all the rates as re
; ised in the bill passed by the SEN
ate are approved by the conferees
end remain in the final conference
draft. Like the original house bill
and the senate's revision, the bulk
Of the taxes are levied upon war
excess profits OF corporations and
on incomes, individual and cOrpo-
rate, Rates OF the senate on trans
portatiOn, beverages, cigars and to-
baccO, amusement admissions, club
dues. luXuries and semi-luxuries,
stamp and special taxes all sub
stantlally were adopted by the con-
ferees while the house rates on
estates and insurance were re-
ins.ated
The principal rate increases
agreed to in conference were to
raise the corporation income tax
rate for 1920 from eight per cent
"a proposed by the senate to 10 per
cent and an increase from 90 to 65
per cent In the second "bracket" or
sliding rate. on corporations ex-
cess profits for this year. The so
per cent war profits tax for this
year was adopted and upon It the
house cOnfcrces extended - 1920,
but made applicable next year only.
such profits from government war
Stracts. The excess profits
~brncket" rates of 20 and 40 per
cent for 1920 also we're approved.
Virtually all the so-called relief
provisions or cushions" of the SEN
ato. designed to prevent hardships
II imposition of the corporation
taxes were adopted.
In the important income tax sec
t'on the bill retains all senate rates,
normal and surtaxes, including that
cs f2 per cent, doubt existing law,
interpretations OF last year. in ex-
cess Of credits publicly allowed, but
fixes the rate for subsequent years
at eight per cent.
Tax on Incomes.
Tic Il per cent normal rate on
individual incomes earned last year
aad the eight per cent rate payable
II 1920 are retained with individual
exemptions Of 81 600 FOR single ana
g coo for married persons, ard an
additional exemption OF 5000 for
each dependent minor.
A+5H ElEpL-A ere prov lSiOuS tHdL
N4.viduaIa shall pay only 6 per
cezt this year, and four per cent
thereafter on the first $4,000 sub
feet 20 tax above exemptions. The
aenats Individual surtaXes, ranging
from one per cent on incomes be-
twasn $4,000 and $4,000 to g. per
cent on more than $1,00OO0O also
were approved.
Bars Child Labor; Cuts Postage
Rate.
OF the important general legls- /
lation and riders the conferees
the following provisions: /
Leyying a prohthitOry tax on pro- /
duets of child labor.
Restoring pre-war postage rates /
on letters and postcards July l, /
next.
Providing a pay bonus of $50 .
Continued on Page FourD /
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