The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1921-12-15
MANY CHANGES IN
INCOME TAX LAW

creased from $500 to $500. Person
al Exemp, ION of s2,5O0 Instead of
$1,000 for Married Persons.
Robert w. McCuen, collector Of In
ternal revenue in Vermont, stated re
Gently in an interview that with the
enactment Of the new revenue legissa-
ton, a number Of inquiries have been
received regarding the several proyi-
sious Of the new act.
There are a number Of major chang
es in the new law that viii necessitate
a careful study Of the provisions in
order to properly prepare certain re
turns required by law. Among other
provisions in the law is the repeal OF
the excess profits tax. This provision
is repealed as Of January l, 1922, but
the rates for 1921 are unchanged.
The tax on ice cream, soft drinks,
etc. monthly returns Of which are re-
auired to be filed, will remain in force
until the end Of the calendar year Of
1921. The tax on parcel post pack
ages is eliminated, effective January l.,
1922.
Regarding the period Of filing re-
turns on the calendar year basis, the
collector stated that, this year, as last,
the tax may be paid in full at the time
of filing the return or in four equal in
stallments. The period Of fling is
from January to March Is, 1922.
Other major changes in the act, ac-
cording to information obtained at the
revenue office, include the exemption
clause for dependent. The exemp-
ton allowed for a dependent is in
creased from 5000 TO s400. Married
persons living with husband or wife
and heads of families are allowed
personal exemption of $4,000 (instead
Of $4,000 unless the net income is in
excess of $4,000, in which case the
personal exemption is only $4,000.
The act provides that in no case shall
the reduction of the personal exemp-
ton from $4,000 to $4,000 operate to
increase the tax which would be pay
able if the exemption were S2,5o0 by
more than the amount Of the net in
come in excess Of $500. This is to
overcome the di disparity in the case Of
two taxpayer, one Of whom is Just
within the lever $1,000 exemption and
the other Just within the higher $4,000
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
personal exemption Of 1000. Per-
sons having gross incomes for 1921 oi
S. 900 or over are required to make
return, regardless of the amount OF
net income.
Provision is made for the repeal as
of January /, 1922, Of the tax on
stockholders of personal service cor
poration as such. After that date such
corporation is to be taxed in the same
manner as other corporations.
The income tax on corporations tor
the calendar year 1922 and thereafter
is increased from ~ to 1914 per cent.
The $4,000 exemption heretofore al
lowed corporations is to be granted
only to those corporations whose net
income is s25, 900 or less.
The surtax rates for the calendar
year 1921 are unchanged, and range
from one per cent on the amount Of
net income between $1,000 and $4,000
TO 65 per cent on the amount of net
income in excess of s1,00O,000. For
the calendar year 1922 the surtax
rates range from one per cent on the
amount Of net income in excess Of
Sc 900 and $4,000 to so per cent on
the amount by which the net income
exceeds 100000.
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