New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1921-12-30
AVERAGE CITIZEN is
ONE BENEFITED MOSTLY
BY NEW TAX MEASURE

Washington, Dec. 28.-The Americ-
an public is going to be saved at least
$S35,0O0,0O by the operations of the
new tax law which the special SEES
sion of Congress passed just prior
to its adjournment. Practically all
OF the reductions made in federal
taxes by this new law represent saw
ings to the average man. The larg-
est item of reduction is that in trans
portation taxes. The new law wipes
out all taxes which have been paid
by passengers in the purchase OF
tickets and by shippers, who have
paid taxes based on freight rates
and parcel post rates. The passeng-
ers tax amounted to s per cent on
every ticket bought over AZ cents in
value. The freight tax amounted to
) per cent on the face value of the
freight bills. The parcel post tax
was one on each Is cents of post
age. All told, these taxes took out
of the pocket of the American pub
lie $300,090,M0 a year. All this will
stop on January LIST. None of the
taxes thus collected went into the
pockets of the railroads, as it was
all collected by them on behalf OF
the government, so that railroad re-
venues are not affected by the repeal
Of these taxes.
Nearly 5000 Families Benefited
Outside OF the travelling and ship
ping public the next largest class Of
people affected are the heads of ia
miles and those who have depend
Tho fox l,,.. ..I,,A.- II
they are to pay by $70,OO0,OO0 I'm
der the old law married men or heads
OF families having an income of less
than 5000 a year were allowed an
exemption OF $1,000. Under the new
law this exemption is increased to
This change goes into effect
this years income. II will affect
over 100000 heads of families. I'm
der the old law heads of families, or
those who had dependents, were al
an exemption OF 5000 for each
dependent. Under the new law this
exemption is increased to $500. This
will affect about 750,OM individuals
in addition to the 100000 mentioned
mother feature OF the law which
touches the average man is
'hc exemption of the first $500 oi
wrich IS derived iron: divi1-
'nds in a building and loan associa-
ion. At the average d vidcnd rate
paid by building and loan ~associa-
ions this will enable people to invest
between 5000 and 5000 in bull =
ng and loan stock and have the in
free from federal taxes. Their
ire at present about 5,C00.G00 mem
,crs in 1000 building and loan assoc
'iations that will be affected by this
provision. 1t is anticipated that this
provision will also encourage peonie |
o invest in building and loan stock.
I so, that, in turn, will furnish slim |
Illus to the building OF more homes |
md houses and relieve the rent stu.
in city districts.
Buying Public Relieved
All taxes on wearing apparel, shoes, |
tc., are repealed under he new law.
although the new Law did not repeal
he luxury" tax on household furni-
ure, trunks and other manufactured
GODS. it did o shift the tax from
he consumer to the manufacturer. =
Ihti inc OUu law the consumer Ddl0 4
he tax on the basis of the retail }
rice. This retail price, OF course, !
represented all of the various profits ;
lade by the manufacturer and mid !
Under the new law the tax !
all paid by the manufacturer M :
II the basis of the manufacturing I
ost. Although in the aggregate this !
amounts to quite a bit, as a rule I
is so small in each individual case :
rat the manufacturer pays il with !
nj passing it on.
The public is also relieved Of the !
which have been paid on toilet !
powders, etc. This tax am I
united TO one cent on every p cents !
orth Of p%erfumery. cosmetics. toilet Z
-%ticles, proprietary (patcnt) medici- :
IS. dental supplies, etc. etc. =
The tax upon soft drinks and ice Z
cam is also repealed. The public
inns more by the repeal Of these z
Nes than the government loses. for (
was admitted that although these =
Nes were collected Of the public. <
very small per cent of them were :
or turned over to the government Z
cause OF the inability TO establish !
system for checking NJ and enforc-
g their payment.