Walker Lake bulletin. (Hawthorne, Nev.) 1883-1926, 1921-12-17
Late Income Tax Changes

Louis A. Spellier, the District OF Ne
vada:
Enactment OF new revnue legisla
ton has brought to the offices OF Col
lectors of Internal Revenue flood OF
inquiries regarding various provisions.
The Revenue Act of 1921 became eff
fective November 23., 1921, unless
otherwise provided for
TO avoid error in the preparat on
of their rteurns and later difficulties
with the Bureau of Internal Revenue
taxpayers are advised to carefully
note the changes and when they be
came effective.
The excess profits tax is repealed as
of January |, 1922 The rates for 1921
are unchanged.
Surtax Rates are not Changed.
he 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 10
65 per cent on the amount of net in
come in excess of $l.0000C0. Tor The
calendar year 1922 the srrtax rate
range from | per cent on the amount
OF net income between $4,000 ami
$4,000 to so per cent on the amount
by which the net income exceeds
100000.
Exemption Increased
The exemption allowed for de-
pendent is increased from $2CO to S40q
Married personsliving with husband or
wife and heads of families are allowed
personal exemption Of $500 (instead
OF $4,000 unless the net income is in
excess of $4,000, 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 $5,00c. 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 exemp-
ton.
Single persons, and married per-
sons not living with husband or wife,
are allowed an exemption of $l,0C0
Nonresident aliens are allowed sim
gle personal exemption of 81 900. Per-
sons having gross incomes for 1921 OF
$4,000 or over are required to make
return, regardless of the amount of
net income.
Provision is made for the repeal
as Of January 1, 1922 of the tax on
stockholders of personal service cor
poration as such. After the date
such corporations are to be taxed in
the same manner as other corpora
tions.
"The income tax on corporations
for the calendar year 1922 and there
after is increased from 1C to l21-2
per cent. The $1,000 exemption here
tofore allowed corporations is to be
granted only to those corporations
whose net income is $4,000 or less.
Many persons are under the i'm
preston that the taxes on ice cream
soft drinks, etc, monthly returns OF
which are required, have been repeal
ed with the enactment OF the new act
These taxes remain in force until the
end of the calendar year 1921.
mo change is made in the tax on
admissions, except that after Janu-
airy |, 1922, there will be no tax where
admission is 10 cents or less. Ell
fective January |, 1922 the following
taxes are to be abolished ;on musical
instruments, sporting goods, chewing
gum, portable electric fans. thermos
bottles fur articles, pleasure boats
pleasure canoes, (unless sold for more
than $lC0) toilet articles, medicines
and numerous articles of apparel.
''On and after January |, 1922 the
tax on various works of art is re-
duced from 10 per cent to 5 per cent,
the tax on candy from 5 per cent to
3 per cent and the tax on rugs, car
pets. trunks. valises, purses, fans, etc,
from 10 per cent of sales price in ex-
cess of specified amounts to per
cent of sales price in excess Of speci-
fled amounts.
"The tax on parcel post packages
is eliminated. effective January /
1922. ;.
"The new act provides that no
payer shall be subjected to unneces-
sary examinations or investigations
and only one inspection OF his books
of accounts shall be made for each