Evening star., 1921-11-26

erable In her cost OF living under the
new tax law, and heads of families
will get additional exemptions. but in
dividuals without dependents get no
! relief from income taxes, although
they will share In the payment OF
taxes tackled onto articles which they
buy.
The revenue will be lessened $425.-
0O0. 900 by the new act. according to
| the figures of the government actua-
they will have that much less In taxes
to pay. But the man in the street and
milady, too, wants to know just how
he and she will save by the law.
Income Tax Provision.
The provision Of the new law which
probably affects directly the greater
number Of people is the income tax:
| The unmarried person, as stated, stiii
pays a tax of 4 per cent on the net
der the old law, but above $5,000' .
per cent.
The head of a family-that Is, mar
ried men, or even any single person with
dependents-has had his exemption in
creased from $4,000 to $500. ana an
minor child or dependent other than
his wife. The exemption for this
cause in the present Is 5000 for each
, dependent. This income tax feature
! Of the law goes into effect December
| 81, of this year. and covers the income
| for the current calendar year. In 9TH
| er words, those who have to pay in
come taxes will feel the benefit of the
new law when they file their returns
next March.
The excess profits tax. which was a
source of much complaint, has been
oh hut
/ added to the corporation tax an addl-
, tional 2h per cent in it's place, max
| ing the total corporation tax now 124a
per cent, instead of the 10 per cent
| under the current law. This feature
| also applies to the calendar year OF
i 1929.
Tax On Soft Drinks.
The tax of per cent on passenger
transportation. including Pullman
becomes imperative January l next
as well as the 5 per cent tax or
| freight. Passengers by rail and
shippers will feel the effect of this
tax beginning next year.
When one goes to the soda fountain
or soft drink emporium for a drink
no longer will he have to dig in his
pockets for the necessary pennies to
! pay for the drink. The tax has been
materially reduced and is paid by the
manufacturer.
On nom alcoholic beverages, called
| cereal beverages, such as beer ano
malt, from which the alcohol has been
/ extracted to comply with the prohi-
| bition laws. and on which the present
| tax is Is per cent, the tax will be
"a cents a gallon. The 10 per cent tax
Ton soft drinks has been reduced to
! cents a gallon for the sirups and
cents a pound for the carbonic acid
gas used. The tax of 1 cent for each
drink costing 10 cents or. fraction
thereof is abolished by the new law
and it's effects will be felt with the
beginning Of the new year.
No Levy on Furs.
Table and mineral waters selling
| for 10 cents or more gallon are
taxed under the new law at cents
a gallon. Bottled goods. so-called
| pop" which sold over the soda foun-
| tains, is to be be paid for at the rate
| or 9 cents a gallon on the sirups
i used and cents a pound for the
, carbonic gas. while the botuers will
pay only cents a gallon tax on the
sirups. This is one Of the discrim.
nations pointed out in the law. A
| manufacturer might make sirup for
both the druggist and the bother
| On that he sells to the druggist ne
| must pay 8 cents q gallon tax ano
; on that he sells to the bother ne
must pay only cents salion hs TAX; \
| Milady will not have to pay the lo
per cent tax after the first OF the
| wear for the fine furs she wears Tor
| warmth. BY this one repeal alone
the government figures that 1t Will
lose SS,00O,000 a year.
| The tax of 3 per cent on tolIe'
! soaps and powders is eliminated by
| the new law on January 1 next as
| well as the 10 per cent tax on Works
| Of art. Under the present law, every
, time a work of art changed nands
! it was taxed 10 per cent, but unoel
tax of per cent, to be paid by the
| ultimate buyer" or art collector.
| Luxury Taxes Removed.
| The so-called luxury taxes on cloth.
! ing costing above certain amounts
were abolished, but the tax on rugs
carpets, trunks, suit cases, purses
! etc, was allowed to remain, the tas
applying to above certain mlnimums
specified in the law, based on the
on the retail price. The tax on silk
| stockings, shoes, wearing apparel Of
all sorts is removed.
Congress put a tax of S per cent or
carpets costing more than $3.50
square yard, and on rugs costing 81
and above, in place of the present II
per cent tax. The application of the
tax also was changed to the manu-
facturer's cost instead of, as now. ap.
plying it to the retail selling price
with it's numerous additions OF profits
as it passes through the several mid.
dlemen to the retailer.
! 1t substituted for the 10 per cent
tax on trunks one of per cent or
| those of $35 or more. cost at the fac.
tory, and in the case Of valises. ha,
boxes, suit cases, etc, the tax is or
| a basis of $25 or more, manufacturer's
selling price. These taxes are on the
amounts in excess Of the exemption.
Levy ON Theatefs.
| The tax on admissions to theaters
or shows was abolished on those en-.
tertainments where the charge Is II
cents or under, but the present tax OF
cent on each 10 cents of admission
above the exemption remains in force
| The per cent tax on musical in.
struments was removed, as also was
! the 10 per cent tax on sporting goods
and the per cent tax on chewing
gum, and the tax OF 10 per cent or
moving picture releases.
On candy the tax was not abolished
but was reduced from per cent to :
per cent.
The per cent tax on electric fans
and thermos bottles was eliminated.
| Pocketbooks, shopping and hand
bags, taxed on a basis Of 5 per cent
on the manufacturers selling price
in excess of IS.
Portable lighting fixtures, incIud-
ling lamps, shades, etc, s per cent on