Middlebury register. (Middlebury, Vt.) 1886-1937, 1921-12-23
HEADS OF FAMILIES
FURTHER FAVORED

Are Allowed Personal Exemption OF
$$25O0 Instead of $4,000 According
To Provisions of New Revenue
Act
Collector of Internal Revenue r. w.
McCuen issues a statement in answer
to food of inquiries regarding var
ious provisions of the new revenue act,
which if carefully followed VII avoid
difficulties later in compiling returns.
The statement says:
"The excess profits tax is repealed as
of January l, 1922, The rates for 1921
are unchanged
"The surtax rates for the calendar
year 1921 are unchanged, and range
from | per cent on the amount of net
income between $1,000 and $4,000 to 90
per cent on the amount of net income
in excess of S1,0O0,000 For the calen-
dar year 1922 the surtax 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 de-
pendent is increased from 5000 to $500
Married persons living with husband
or wife and heads of families are al
lowed a personal exemption of $500,
instead of $4,000, unless the net income
is in excess of $1,000, in which case the
personal exemption is only $1,000 The
act provides that in no case shall the
reduction of the personal exemption
from $500 to $1,000 operate to in
crease the tax which would be payable
il the exemption were $500 by more
than the amount of the net income in
excess of $1,000. This is to overcome
the disparity in the case Of two tax
payers, one of whom is just within the
lower $1,000 exemption and the other
just within the higher $500 exemption.
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 per-
sonal exemption of $1,000 Persons
having gross incomes for 1921 of $1,000
or over are required to make a return.
regardless of the amount of net income.
provision is made for the repeal as
sAf January |, 1922 of the tax on stock
Holders of a personal service corpora
ton as such After that date such
corporations are to be taxed in the
same manner as other corporations,
"The income tax on corporations for
the calendar year 1929 and thereafter
is increased from 10 to II IL per cent
ba al al
loved corporations is to be granted
only to those corporations whose net
income is $25,000 or less.
MANY persons are under the impress
sion that the taxes on ice cream, soft
drinks, etc, monthly returns of which
are required, have been repealed with
the enactment of the new act. These
taxs remain in force until the end of
the calendar year 1921
mo change is made in the tax on
admissions, except that after January
|, 1922 there will be no tax where adj
mission is 10 cents or less Effective
January |, 1922 the following taxes are
$50 abolished: on musical instruments,
sporting goods, chewing gum, portable
electric fans, thermoS bottles, fur ar
ticles, pleasure boats and pleasure ca
noes. unless sold for more than Sl00l,
toilet articles, medicines and numerous
articles of apparel
"On and after January /, 1922 the
tax on various works Of art is reduced
from 10 per cent to per cent, the
tax on candy from per cent to 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, to per cent of
sales price in excess of specified
amounts.
"The tax on parcel post packages is
eliminated, effective January |, 1922"