The Lamar register., 1921-12-14
NEW REVENUE LAW
Provisions of New Income Tax Law
as Set Out by Collector Of In
ternal Revenue Howbert.

ions. The Revenue Act of 1921 be-
came effective November %, 1921, "un-
less otherwise provided for"
To avoid erreor in preparation of
their returns and later difficulties with
the Bureau OF Internal Revenue, tax
payers are advised to carefully note
the changes and when they become
effective.
The excess profits tax is repealed
as of January l, 1922. The rates for
1921 are unchanged.
The surtax rates for the calendar
year 1921 are unchanged, and range
IRON l per cent on the amount of net
income between $1,000 and $4,000 to
90 per cent on the amount OF net IN
come in excess Of S1,00O,OOO. For the
calendar year 1922 the surtax rates
range from per cent on the amount
OF net income between $4,000 and SlO,-
900 to 90 per cent of the net income
in excess of 100000.
The exemption allowed for de-
pendent is increased from 300 to
$500. Married persons living with
husband or wife and heads of fam
lilies are allowed personal exemption
of $4,000 (instead of $4,000 unless
the net income iS in excess of $4,000,
m which case the personal exemption
is only $1,000. The act provides that
ir no case shall the reduction of per-
sonal exemption from $500 to $1,000
operate to increase the tax which
would be payable if the exemption
we're $500 by more than the amount
of the net income in excess of $4,000.
This is to overcome the disuarity in
the case of two taxpayers, one of
whom is just within the lower $1,000
exemption and the other just within
the higher $500 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 81 900. Persons
having gross incomes for 1921 Of $5,-
900 or over are required to make
return, regardless of the amount of
net income.
Provision is made for the repeal as
January l., 1922 of the tax on stock
holders of personal service corpora
ton as such. After that date such
corporations are to be taxed in the
same manner as other corporations.
The income tax on corporations for
the calendar year 1922 and thereafter
is increased from 10 to 121s per cent.
The $1,000 exemption heretofore al
lowed corporations is to be granted
only to those corporations whose net
income is S25,0OO or less.
Many persons are under the impress
zion that the tax on ice cream, soft
drinks, etc, monthly returns of which
are required, have been repealed with
the enactment of the new act. These
taxes remain in force until the
end of the calendar year 1921.
No change is made in the tax on
admissions, except that after January
/, 1922 there will be no tax where adj
mission is less than 10 cents. Effect
i've January l, 1922 the following taxes
are to be abolished: on musical in
struments, sporting goods, chewing
gum, portable electric fans, thermos
bottles, fur articles, pleasure boats
and pleasure canoes, unless sold for
more than 500, toilet articles, medi-
cines and numerous articles of apparel.
On and after January 1, 1922 the
tax on various works of art is reduc-
ed from 10 per cent to 5 per cent, the
tax on candy from per cent to per
cent and the tax on carpets, rugs,
trunks, valises, purses, fans, etc. from
10 per cent of sales price in excess
of specified amounts to 5 per cent Of
sales price in excess of specified
amounts.
The tax on parcel post packages is
eliminated effective January l, 1922.
The new act provides that no tax
payer shall be subjected to unneces-
sary examinations or investigations,