The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1921-12-15
Changes in, Income Tax Law
Allow $40O Exemption for
Each Dependent 4
FAMILY HEAD EXEMPTED \
$4,000 ON $4,000 INCOME
Numerous Changes in Tax in
New Act Will Go Into
Effect January ! .r..

"Enactment of new revenue legisla'
ton has brought to the offices OF COZ.
lectors of internal revenue hood OF
INQUIRIES regarding various provisions
The Revenue Act of 1921 became
effective November 20, 1921, (unlesS
, otherwise provided for)," according
= to a statement issued by the collectoa
for the district Of Minnesota.
"To avoid error, in the preparation
of their returns and later difficulties
with the Bureau of Internal Revenue
taxpayers are advised to. carefully
note the changes and when they be-
come effective. .. .:..ss s..z s5.; -: y
'6The excess profits tax is repealed
as of January 1, 1922. The rates
for 1921 are unchanged. % -:
T. 1.-THE surtax rates for the calendar
year 1921 are unchanged, and range
from 1tper cent on the amount OF net
income between $4,000 and $4,000
to IS per cent on the amount of net
income in excess. of $1,000, 900. Fol
the calendar year 1922 the surtaS
rate, 1 per cent on the amount OF
net income between $4,000 and $10,.
600 to so percent ON the amount By
which the net income exceeds $780,
OOO.% - :,
"The exemption allowed for, de.
" pendent is increased from 5000 to
$500. Married persons living with
husband orwife and heads Of families
are allowed a personal exemption OF
$4,000 (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
reduction of the personal exemption
from $4,000 to $4,000 operate to in.
crease the tax which would be pay.
able if the exemption were 81 500
by more than the amount Of the net
income in excess Of ST, 000-This is
to overcome the disparity in the case
of two taxpayers, one of whom is
just within the lower $4,000 exemp.
ton and the other, Just within the
higher $4,000 exemption. - $l,s!! - -
"Slngle persons not living. with
husband of wife, are allowed an ex.
en1ption of $1,000 Nonresident
aliens are allowed a single person :
exemption of $1,000. Persons having
gross income for 1921 Of $4,000 OF
over are required to make return
regardless of the amount of the net
income. Sra -.
Provision is made for the repeal
as Of January 1, 1922, Of the tax on
stockholders Of personal service cor.
). poration as such. After that date
such. corporations are to be taxed IN
the same manner as other corpora.
lions. -. 5~, : y. :. .t. .ag =
.''The income tax on corporations
for the calendar year of 1922 and
thereafter is Increased from 10 to
12k percent. The $4,000 exemption
heretofore allowed corporations is tc
, be granted only to those corporations
whose net inco is $4,000 or less
s'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 re:
pealed with the enactment Of the new
act. These taxes remain in force until
the end of the calendar year 1921.
T. ''No change is made in the tax or
admissions, except that after January
1, 1922, there will be no tax where
admission is less than 10 cents. Effect.
i've january I, 1922, the following
taxes are also abolished; on musica
instruments, sporting instruments
sporting goods, chewing gum, porta'
20. 49, fConfip11oH an M pn ~ -