Roanoke Rapids herald. [volume] (Roanoke Rapids, N.C.) 1914-192?, 1921-12-16
Provisions of New
Revenue Act

Enactment of new revenu
legislation has brought to tn
offices of Collectors of Interns
Revenue a flood of inquiries re
garding various provisions. Tn
Revenue Act of 1921 became eff
fective November %, 1921, 'un
less otherwise provided for,
ITO avoid error in the prepa
ration of their returns and late
difficulties with the Bureau of In
ternal Revenue, taxpayers arr
advised to carefully note thu
changes and when they become
effective.
"The excess profits tax is re-
pealed as of January l, 1922
The rates for 1921 are unchanged
THE sutax rates for the calen.
dar year 1921 are unchanged,
and range from l per cent on the
amount of net income between
S., 900 and $4,000 to 65 per cent
on the amount of net income in
excess of $1,000, 1000. For the
calendar year 1922 the surtsx
rates range from | per cent on
the amount of net income be-
tween Sc, 900 and $40, 900 to so per
cent on the amount by which the
net income exceeds 100000.
The exemption allowed for a
dependent is increased from 5000
to S4O0. Married persons living
with husband or wife and heads
of families are allowed a personal
exemption of $500 Gnstead of
So, 000) unless the net income is
in excess of S., 600, in which case
the personal exemption is only
$4,000 The act provides that
III no case shall the reduction of
the personal exemption from
So, 500 to $4,000 operate to in
crease the tax which would be
payable if the exemption were
So, 500 by more than the amount
of the net income in excess of
5000. This is to overcome the
disparity in the case of two tax
payers, one of whom is just
within the lower $40 eXemp-
ton and the other just within the
higher S2, 500 exemption.
Single persons, and married
persons not living with husband
or wife, are allowed an eXemp-
ton of $1,000. Nonresident
aliens are allowed a single per-
sonal exemption of 81, 900. Per-
sons having gross incomes for
1921 of S., 600 or over are reQuir-
ed to make a return, regardless
of the amount of net income.
Provision is made for the re-
peal as of January l, 1922 of the
tax on stockholders of a personal
service corporation as such.
After that date such corpora
ations are to be taxed in the
same manner as other corpora
tions.
THE income tax on corpora
tions for the calendar year 1922
and thereafter is increased from
10 to 12a per cent. The $4,000
exemption heretofore allowed
corporations is to be granted only
to those corporations whose net
income is S25, 600 or less.
Many persons are under the
impression that the taxes on ice
cream, soft drinks, etc., monthly
returns of which are required,
have been repealed with the en-
actment of the new act. These
taxes remain in force until the
end of the calendar year 1921.
No change is made in tax on
admissions, except that after
January l, 1921 there will be nc
tax where admission is 10 cents
or less. Effective January /
1922, the following taxes are alsc
abolished: on musical instru
ments, sporting goods, chewing
gum, portable electric fans, ther
mos bottles, fur articles, plea
sure boats and pleasure canoes
unless sold for more than $l0O
toilet articles, medicines, an,
numerous articles of apparel.
"On and after January l, 1925
the tax on varions works of or