Evening journal., 1921-09-15
JUST HOW IT'LL
AFFECT USNOW
Highspots of Changes Made
in Present Federal Taxa
ton Scheme
$500 EXEMPTION
FOR EACH CHILD
BY HARRY HUNT

BY HARRY HUNT
WASHINGTON.-It's going TO be
cheaper to scrub your teeth, once
the Republicans get their new rev.
enoe bill enacted. than it was when
the Democrats were in power.
Also. it will cost less to decorate
your home with art bronzes or stat
uary. or to buy Sonny that baseball
bat and glove.
And every time you take your wife
or Sweetheart fve-pound box Of
chocolates you'll be a whole dime
ahead. II the confections plays
square with you and gives you the
beneft Of the 2 cents per pound tax
reduction Of the new lawl
An analysis Of the new revenue
bill in the form in which IL was
passed by tho House. shows that the
bigger spendcr you have been the
bigger savings you may be able to
make under the new tax schedules.
II you've been living close TO the
line. holding down on the number
of ice cream sodas and the amount
of candy you consume, denying your
wife fancy fummeries and cosmetics,
travelling little and putting you pipe
in shirt sleeves instead of a smoking
jacket, the bill holds only one relief
for you. That is;
II you have a big family, youn get
s400 exemption on each child, for
income tax purposes instead of 5000,
as allowed by the Democratic law.
On the other hand. while the new
tax schedules will save you that
2-cent tax on your weekly ice cream
soda. and ? cents on each pound OF
candy, not to mention tax-free tooth
paste aid lip sticks. the assessme ent
Of John ID. and other gentlemen
with incomes above the million
dollar mark will be reduced $3.50, 600
on each million Of net taxable in
come
The average citizen. however, with
income of from $1,000 TO $4,000 a
year, will feel some relief under the
provisions OF the law as passed by
the House
Taking income taxes first. the new
law increases the exemption Of the
head Of a family from $4,000 to
S2500. where the net taxable income
is less than $4,000 per year. Where
the net income is $4,000 or more, the
exemption as head Of a family re-
mains at $4,000.
The exemption for each depend
ent child under is, or for such other
person totally dependent upon the
head OF the family is increased from
S2oo to $i00.
with these exceptions, the income
tax law remains unchanged for thu
taxpayer on 5000 to S66.00O income
But il you are one of the super
taxpayers. with a net income exceed
ing s66.ooo. you will be more inter
ested In the amendment whic
strikes out all higher surtaxes tha
the 80 per cent. fixed for incom
above that amount
President Harding and judges o.
the supreme and Inferior courts ar,
relieved from any tax on their Fed
eral salaries.
Omcers in the army and navy
however who have been allowed
exemption up to $500. are returned
to the status of the ordinary civilian
Corporation income taxes are
amended. to provide a tax Of II y
per cent. instead Of 10 per cent on
net income. effective in 1922.
The graduated excess profits tas
on corporations is repealed, effective
January I, 1922.
Taxes on insurance companies
are fixed at 10 l-2 per cent. of theii
net income, beginning with 1922. in.
stead of cents on each 500 of in
surance written and 81 for eacf
$1,000 of surplus and reserves.
The transportation tax OF s PEI
cent on passenger business and
per cent on freight Is repealed, ef
fectlve January /, 1929.
OF the excise taxes, those on sof
drinks and ice cream. considered oh
jectionabie because so obtrusive. ar
repealed.
The tax on candy Is reduced fror
5 cents to cents a pound.
Taxes on sporting goods are re
duced from 10 TO per cent.
Art goods are assessed at s pc
cent. instead Of 10 per cent. and IN
A"A( 'H Nh' hAnI'A AANIAo IA Tic g
else list scaled down.
While the rate on yachts is r,
duced from 10 to per cent. how
ever. a luxury tax is placed on man
articles beginning at figures consit
erabiy lower than those now
force.
For instance, the tax will go q
carpets and rugs at a value OF S3.E
per square yard, instead of S5; c
umbrellas at $3.50. instead Of s
on grips at SIS, instead OF S25, etc.
However it is altogether too soc
to attempt TO compute how muC
you viii pay Uncle Sam in tax
under the new bill. For the Sena
has not had its say as yet, and q
bill that emerges from the Sena
mill may differ radically from tn
passed by the House.