The Lubbock avalanche. (Lubbock, Tex.) 1909-1922, 1921-12-23
Revenue Collector Answers inquiries
Regarding Tax ReWsions in the New
Income Tax Laws Recently Passed

George c. Hopkins Tor the Second
District Of Texas:
Enactment Of new revenue lcgia.
lalion has brought to the offices Of
Collectors Of Internal ReTenue a.
flood Of inquiries regarding various
provisions The Revenue Act Of
1921 became effective November ~,
1921. unless otherwise provided
for"
"To avoid error in the preparation
Of their returns and later difficulties
with the Bureau OF Internal Reven-
ue taxpayers are advised 10 carefully
note the changes and when they be-
come effective.
"The excess profits tax is repealed
ms Of January /, 1922. The rates Tor
1921 are unchanged.
THE surtax rates for the calendar
year 1921 are unchanged, and range
from 1 per cent on the amount Of net
income between s., 900 and $4,000 TO
Go per cent on the amount OF income
in excess Of 100000 For calen-
dar year 1929 the surtax tax rates
range from / per cent on the amount
Of net income between $4,000 and
$4,000 TO so per cent on the amount
by which the net income exceeds
100000.
"The exemption allowed for a de-
pendent is increased from 5000 to
$500. Married persons living with
husband or wife and heads Of fami-
lies are allowed a personal exemption
OF $4,000 (instead Of $4,000 unless
the net income is In excess Of 80 GOO
in which case the personal exemption
is only $4,000 The act provides thai
in no case shall the reduction ~ the
personal exemption from $500 20
$4,000 operate 90 increase the tax
which would be payable if the eXemp-
ton were $500 by more than the
amount of the NET income in cNccs
~ s. 600 This is 10 overcome the
DISPARITY in the case Of two taxpay-
ers. one ~ whom is just within The
lower $1,000 exemption and The 9TH
or just within .he higher $500 exc
emnti0n.
Single pcrson and married persons
not living with husband nr wife, are
allowed an exemption Cf 1000 Nom
resident aliens are allowed q single
personal exemption of 1000 Per
sons having gross incomes Tor l9-
~ 5 600 or over are required to
make "a return, regardio 0I ihr
amount Of net income.
Provision is made Or DE repeal
as ~ January &, 1929 N tho taN ON /
stockholders Of q personal service cor /
noratior AZ such After that dates
49,. 49,. b.. d.. f..aH lu
the same manner as other corpora /
lions
"rhe income tax on corporations
FOR the calendar year 1922 and there-
after i increased from 90 % ~ ~ I
per cent. The $4,000 exemption here I
toforc allowed corporations is 20 be (
granted only Co those corporations /
whose net income Is $500 on Tess /
MANY persons are under the m /
preston that the taxes on ice cream,
soft drinks. etc., monthly returns Of /
which are required. have been repeal /
cd with the enactment Of the new
act These taxes remain IN force I
until the end ~ the calendar year
1921.
enc tax Is made IN the tax on +
admis ions. except that after January
J.. 1922. there viii be no tax where .
admission IL 10 cents or less. Effcc- /
tive January /, 1922. the following
taxes are also abolished; on musical
instruments, sporting goods, chew
ing gum. portals electric fans, Their
mos bottles, fur articles, pleasure /
boats and pleasure canoes, (unless
sold FOR more than 5000, toilet ar
ticles, medicines and numerous ar
ticles 81 apparel
con and after January ], 1922, /
the tax on various works ~ art -
reduced from 10 per cent toe5 per
cent. the tax on candy from per
cent 20 3 per cent and the tax on
carpets, rugs. trunks, valises, purses,
fans. etc, from 10 per cent OF sales
price in excess Of specified amounts
10 5 per cent Of sales price IN ex-
cess Of specified amounts.
The tax on parcel post packages