The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-30

Exemption for Family
Head Increased $500,
Effective Jan. l.
REPEAL FREIGHT
AND FARE LEVIES
Many Alterations Con
Germ Payments to Be
Made in 1923.

Important tax changes become
effective January 1 under terms of
the new revenue law.
Many of the alterations, applying
TO business and private incomes
{ during the coming calendar year,
affect payments to be made during
1923. This is true of the excess
profits tax repeal. reductions in
surtax rates and the new corpora
ton tax
Other changes apply to payments
to be made during 1922. Repeal of
taxes collected currently-like those
on transportation-are. of course, at
once effective,
The small taxpayer, IN the pay
ments he will be obliged to make
during 1872. will be chiefly benefited
by the Increased exemption for the
head of a family from $4,000 to
s2.500, and the Increased exemption
for dependents from s200 to s40O.
This change is retroactive. apply
ing to incomes during this year.
and will appear on returns to be
made Immediately after the first of
the year.
EofI takts hfpcatcu-
Changes effective January I, 1922.
which will be Immediately reflected.
include:
Repeal of transportation taxes on
freight rates, passenger fares, Pull
man fares. express packages and
transmission of oil by pipe lines.
Repeal of the insurance taxes.
Elimination of taxes on musical
instruments, sporting goods, chew
ing gum. electric fans. thermos bot
ties fBrs, toilet soaps, leased pic
ture films. perfumery, cosmetics and
proprietary medicines.
elimination of the soda fountain
tax" and substitution of a tax on
syrups and carbonic acid gas equiv
alent to 1.9 cents a GALLON
Reduction of the tax on candy
from to per cent
Reduction of the taxes on cereal
beverages.
Elimination OF admission tax
where admission is 10 cents oil, less,
Luxury Levies Changed.
Reduction of the tax on art works
to per cent on sale to consumer"
only.
Changes in the luxury taxes Con
D.
classes of articles are taxed at !
per cent of the manufacturers
price, where before twenty classes
paid 10 per cent on the retailers
price.
Elimination of parcel post tax oi
l cent on each 25 cents charge.
Elimination of tax on bonds ot
indemnity and surety.
Taxes which become effective or
January l. 1922, and which will
apply to payments made during
1923. include:
Repeal of the excess profits tax
Reduction in surtax rates from
maximum of so per cent to g
maximum of so per cent. reduction:
extending to incomes of all sizes
and benehting small incomes tn,
most
New Corporation Duty.
Imposition of a new fat corpora.
tion income tax of 1875 per cent
The Internal Revenue Bureau al
4 ready has sent TO its agents
throughout the country instructions
to stop collection OF the taxes af-
fected with the beginning of the
new year.
The reduction during the first fun
year In Whlch all the changes VIII
be effective is calculated at ssl5,-
100000. This is the amount that
taxpayers will keep in their lpock Is
under the new law, which under the
old law would have been paid out
The first fun year" however. is
not the calendar year 1922, because
payment of surtaxes. excess profits
taxes and other levies, based on
1921 will continue
Revenae Is Estimated.
Treasury experts insist that o
calculation of the actual saving dur
ing 1922 under the new law is i'm
possible, because of the difficulty
In predicting the trend of business
and the hangover" of various
levies. But they figure the govern-
ments income under the revenue
law will be as follows:
During the fiscal year 1922 Gully
/. 1921. to June 30. 1920, s3.214,-
100000.
During the fiscal year 1922 (July
/. 1929. to June 80, 1920. SASH
rooo.ooo
VI During the calendar year 1928. 81
55e,ooo, 900