New Ulm review., 1921-12-14

husband or wife and heads of families
are allowed a personal exemption OF
So, 500 (instead of $4,000, unless the
net income is in excess of $4,000, in
which case the personal exemption is
only $4,000. The act provides that in
no case shall the reduction of the per-
sonal exemption from So, 500 to $4,000
operate to increase the tax which would
be payable if the exemption were
So, 500 by NOR than the amount of the
net income in excess of $4,000. This
is to overcome the disparity in the case
of two taxpayers, one of whom is just
within the lower So, 900 exemption and
the other just within the higher So, 500
exemption.
Other Tax Exemptions.
Single persons, and married persons
not living with husband or wife, are
allowed an exemption of $1,000. Non
resident aliens are allowed a single
persons exemption of $1,000. Per-
sons having gross income for 1921 OF
$4,000 or over are required to make a
return, regardless of the amount Of net
income.
Provision is made for the repeal as
of January 1, 1922, of the tax on stock
holders Of a personal service corpora
tion as such. After that date such
corporations are to be taxed in the
same manner as other corporations.
Corporation Tax Increased.
The income tax on corporations for
the calendar year 1922 and there
after is increased from 10 to IL 1-2
per cent. The $4,000 exemption here
tofore allowed corporations is to be
granted only to those corporations
whose net income is $25, 900 or less.
Luxury Tax Bill Effective.
Many persons. are under the i'm
preston that the tax on ice cream,
soft drinks, etc., monthly returns of
which are required, have been repealed
with the enactment of the new act.
These taxes remain in force until the
end of the calendar year 1921.
Some Excises Abolished.
No chagne is made in the tax on
admissions, except that after January
1, 1922, there will be no tax where adj
mission is less than 10 cents. Effect
i've January 1, 1922, the following taxes
are also abolished: On musical instru-
ments, sporting goods, chewing gum,
portable electric fans, thermos bottles,
fur articles, pleasure boats and pleasure
canoes, unless sold for more than 500,
toilet articles, medicines and numer-
Gus articles of apparel.
Various Reductions.
On and after January /, 1922, the
tax on various works of art is reduced
from 10 per cent to five per cent, the
tax on candy from five per cent to
three per cent and the tax on carpets,
rugs, trunks, valises, purses, fans, etc.,
from 10 per cent of sales price in excess
of specified am cunts to five per cent OF
sales price in excess of specified
amounts.
The tax on parcel post packages is
eliminated effective January l, 1922.
Unnecessary Quizzing Taboo.
The new act provides that no tax
payer shall be subjected to unnecessary
examinations or Investigations, and
only one inspection of his books of
accounts shall be made for each tax
able year, unless the taxpayer requests
otherwise, or the commissioner notifies
the taxpayer in writing that an ad-
ditionali inspections is necessary.
Filing Tax Returns.
The period for filing returns on the
calendar. year basis is from January ]
to March Is, 1922. This year, as last
the tax may be paid in full at the time
Of filing the return or in four equal in
stallments, due on or before March
Is, June Is, September Is and Decem-
ber Is.
Copies of the revenue act may be
had by application to the office Of the
Collector Of Internal Revenue for the
District Of Minnesota at ST. Paul.