The Lynden tribune. [volume] (Lynden, Wash.) 1908-current, 1921-12-15
WILL SAVE ON
LOWER INCOME TAX
Increase of Exemptions Will Mean
Substantial Reduction for Local
People

tions made in income tax rates which
will benefit Lynden taxpayers, was
made this week by the Collector OF
| Internal Revenue at Tacoma. An
increase in the exemption of married
people to $4,000, and the doubling
of exemptions for dependents, is
expected to prove big saving to the
average taxpayer here.
The following is the notice sent
to The Tribune by the government
office:
"The excess profits tax is repeal
ed as of January /, 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 S6.-
600 to G5 per cent on the amount of
net income in excess of $1,000,000.
THE exemption allowed for a de-
pendent is increased from $500 to
s400. Married persons living with
husband or wife and heads of famil-
les are allowed a personal exemption
of s2,5OO (instead of $4,000 unless
the net income is in excess of $5,-
coo, i'll which case the personal ex-
emption is only $4,000. The act pro-
vides that in no case shall the re-
duction of the personal exemption
from $2.500 to $4,000 operate to in
crease the tax which would be pay
able if the exemption were s2,5OO
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 taxpayers, one of whom is just
within the lower $4,000 exemption
and the other just within the higher
$2.h00 exemption.
Single persons, and married per-
sons not living with husband or wife
are allowed an exemption of 81 900.
Nonresident aliens are allowed
single personal exemption of 81 600.
Persons having gross incomes for
1921 of $4,000 or over are required
to make return, regardless Of the
amount of net income.
The income tax on corporations
for the calendar year 1922 and there
after is increased from 10 to 121
per cent. The $4,000 exemption
heretofore allowed corporations is to
be granted only to those corporations
whose net income is $4,000 or less.
mo change is made in the tax
on admissions, except that after jan
uary / 1922, there will be no tax
where admission is 10 cents or less.
Effective January !, 1922, the fol-
lowing taxes are abolished: ON mu-
steal instruments, sporting goods,
chewing gum, portable electric fans,
thermos bottles, fur articles, plea
sure boats and pleasure canoes (un-
less sold for more than 5000, toilet
articles, medicines and numerous ar
tieles of apparel
"On and after January /. 1922,
the tax on various works of art is
reduced from 10 per cent to 5 per
cent, the tax on candy from per
cent to per cent and the tax on car
pets, rugs, trunks, valises, purses,
fans, etc, from 10 per cent of sales
prices in excess of specified amounts
to per cent.
1.-The tax on parcel post packages
is eliminated effective January / 3,
1922.
1.-The new act provides that no tax
payer shall be subjected to unnec-
essary examinations or Investigations
and only one inspection of his books
of accounts shall be made for each
taxable year unless the taxpayer re-
quests otherwise, or the Commission
er notifies the taxpayer in writing
that an additional inspection is nee
essary.
"The period for filing returns on
the calendar year basis is from Jan
uary ! 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 installments, due on or
before March Is, June IS, September
is and December 15."
Monday, December 26, is the date
set for the Christmas dance to be
given by the American Legion. at the