The Alaska daily empire., 1921-12-22
NEW REVENUE
 ENACTMENT IS
 NOW EXPLAINED
Various Provisions of New 7 Laws Set Forth in State
 ment by Burns Poe.
INCOME TAXES HAVE
 UNDERGONE CHANGE
Unnecessary Examination of Books Not Permitted
 Other Facts Given.

Enactment of new revenue legis lation has brought to he offices of Collectors of Internal Revenue a flood of inquiries regarding various provisions The Revenue Act of 1921 became effective November 23, 1921, unless otherwise provided for
 ITO 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" says Collector of In ternal Revenue Burns Poe in cir cular just received in Juneau from his headquarters at Tacoma.
 ''The excess profits tax is repeal ed as of January 1, 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 $5,000 and $6,000, to 65 per cent of the amount of net in come in excess of $1,000,000. For the calendar year, 1922 the .surtax rates range from 1 per cent on the amount of net income between $6,000 and $10,000, to 50 per cent on the amount by which the net income ex- ceeds $200000.
 ''The exemption allowed for a de- pendent is increased from $200> to $400. Married persons living with husband or wife and heads of famil- ies are allowed a personal exemption of $2,500 (instead of $2000) unless the net income is in excess of $5,000, in which case the personal exemp- tion is only $2,000. The act provides that in no case shall the reduction of the personal exemption from $2,500 to $2,000 operate to increase the tax which would be payable if the exemp- ton were $2,500 by more than the amount of the net income in excess of $6,000. This is to overcome the disparity. in the case of two taxpay- CTS, one of whom is just within the lower $2,000 exemption and the other just within the higher $2,500 exemp-
 Single persons, and married per sons noteliEing with husband or wife, are allowed an exemption of $1,000. Nonresident aliens are allowed a single personal exemption of $1,000 Persons having gross incomes for 1921 of 5000 or over are required to make return, regardless of the amount of net income.
 .e1sProvision is made for the repeal as of January 1, 1922, of the tax on stockholders of a personal service corporation as such. After that date such corporations are to be taxed in the same manner as other corpora tions.
 'SThe income tax on corporations for the calendar year 1922 and there after is increased from 12 to 1912 per cent. The $2,000 exemption hereto fore allowed corporations is to be granted only to those corporations whose net income is $25,0 ,000 or less
 Many persons are under the inn pression that the taxes 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 f0Ece until the end of the calendar year 1921. -s-s-
 s''No change is made in the tax on admissions, except that after Janu- ary ], 1922, there will be no tax where admission is 10 cents or less. Effective January 1, 1922, the follow Ing taxes are also abolished; on musical instruments, sporting goods, chewing gum,s portable electric fans, thermos bottles, fur articles, pleas ure boats and pleasure canoes (un less hold flor, more than $100), toilet articles, medicines and numerous ar tScles of apparel.
 h"On and after January 1, 1922, the tax on various works of art is re- duced from 10 per cent to per cent, the tax on candy from per cent to per cent, and and the tax on carpets, rugs, trunks, valises purses, fans, etc, from 10 per cen, of sales price in excess of specified