Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-02-06
DIRECT TAX BY
u. S. IS INCREASED
[Continucd from First Page. ]

ICOnClnucu from f1rSC rage
year in excess of cerdits previously
allowed, but fixes the rate for SUBJ
sequent years at eight per cent.
The twelve per cent. normal rate
on individual incomes earned last
year and the eight per cent. rate
payable in 1920 are retained with
individual exemptions of 81 900 for
single and $4,000 for married per-
sons, and an additional exemption
of $500 for each dependent minor.
Also adopted are provisions that in
dividuals shall pay only six per cent.
this year and four per cent. there
after on the first $4,000 subject to
tax above exemptions. The Senate
individual surtaXeS, ranging from
one per cent. on income between $5,-
600 and $4,000 to sixty-five per cent.
on more than S1,O00,OO0 also were
approved.
How 1t Works
OF the important general legisla-
ton and riders the conferees
adopted the following provisions:
Levying a prohibitory tax on pro-
ducts of child labor.
restoring pre-war postage rates
on letters and post cards July 1 next.
Providing pay bonus of $50 for
'il PNioOiio III llt SSIaD-
lishment, officers and enlisted men
alike.
Extending the Reed bone dry"
prohibition law to the District of
Columbia.
Increasing from s25 to $1,000 the
tax on those dealing in intoxicants,
including stills" in prohibition ter
ritory.
For taxation of salaries of Fed
eral officials, including the Presi-
dent and judiciary but not of state
officials.
For submission of all government
contracts, by contractors on demand
of the internal revenue commission
CIR.
For exemption of 20 per cent. to
oil prospectors.
Establishing an advisory tax
board of six members in the Treas
ury.
Restricting sale and use of mar
cotics by strengthening the Harrison
drug act.
Some Changes
Estate taxes, substituted for the
Senate inheritance levies and follow
ing the original House plan are i'm
posed at rates lower than existing
law. With a general exemption of
$4,000 the new rates range from
one to twenty-five per cent.-the
minimum on net taxable estates un-
der $4,000, (after deduction of al
lowances). and the maximum of 25
per cent. on estate of SIS, 200, 900
and over. The existing graduated
rates range from two per cent. on
estates under $4,000 to rs per cent
on those exceeding SIC, 100000, while
the House proposed rates from three
to 40 per cent.
The provision for taxes on trans
poration and other public facilities,
effective April 1, larg~ly follows the
existing law, but reduces from ten
to eight per cent. the levy on seats,
berths and stateroom accommoda-
ton in sleeping or parlor cars or on
vessels; fixes the rate on telegraph,
telephone. cable and radio messages
at five cents on those costing 10 to
so cents, ten cents on those above
90 cents instead of the present five
cent fiat charge on messages costing
is cents and more, and imposes a
mex tax on private or leased tele-
phone or telegraph wires, except
press wires, of ten per cent. of rent
ais. In fixing the passenger trans
portation taxes the conferees adopt
ed Senate amendment to exempt
commutation trips of less than thirty
miles or fare paid under AZ cents
Beverage Taxes
Beverage taxes, contingent on pro-
hibition, as adopted are: Distilled
spirits for non-beverage purposes,
1920 per proof gallon, the present
rate; distilled spirits manufactured.
imported or withdrawn for bevera GO