The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1921-12-16
AVERAGE CITIZEN is ONE BENZ.
FITTED MOSTLY BY NEW TAX
MEASURE.
Nearly All of the $685., 100000 Tax
Reduction Is Saved to the Com
mon People.

The American public is going to be
saved at least $685., 100000 by the
operations of the new tax law which
the special session of Congress passed
lust prior to it's adjournment. Prac-
tically all of the reductions made In
federal taxes by this new law repre-
sent savings to the average man. The
largest item of reduction is that in
transpor tation taxes. The new law
wipes out all taxes which have beer
paid by passengers in the purchase oil
tickets and by shippers, who have
paid taxes based on freight rates and
parcel post rates. The passenger tax
amounted to s per cent on every
ticket bought over AZ cents in value
The freight tax amounted to B per
cent on the face value of the freight
bills. The parcel post tax was one
cent on each 25 cents of postage. All
told, these taxes took out OF the
pocket of the American public $780,
100000 a year. All this will stop on
January 1st.. None of the taxes thus
collected went into the pockets of the
railroads, as it was all collected by
them on behalf of the government,
so that railroad revenues are not
affected by the repeal of these taxes
Nearly 100000 Families Benefited.
Outside of the travelling and ship
ping public the next largest class of
people affected are the heads OF
families and those who have depend
ents. The new tax law reduces the
amount they are to pay by S70,000,-
600. Under the old law married men
or heads of families having an income
less than $4,000 a year were allowed
an exemption of $4,000. Under the
new law this exemption is increased
to $1,000. This change goes into
effect on this years income. 1t will
affect over 100000 heads of families.
Under the old law heads of families,
or those who had dependents, were
allowed an exemption of 5000 for
each dependent. Under the new law
this exemption is increased to $500.
This will affect about 100000 individ-
uals in addition to the 100000 men
toned above.
Another feature of the law which
closely touches the average man is
the exemption of the first $500 of in
come which is derived from dividends
in building and loan association.
At the average dividend rate paid by
building and loan associations this
will enable people to invest between
$4,000 and $4,000 in building and
loan stock and have the income free
from federal taxes. There are at
present about 100000 members in
5000 building and loan associations
that will be affected by this provision
1t is anticipated that this provision
will also encourage people to invest
in building and loan stock. II so,
that in turn, will furnish stimulus
to the building of more homes and
houses and relieve the rent situation
in city districts.
Buying Public Relieved.
All taxes on wearing apparel, shoes,
etc. are repealed under the new law.
Although the new law did not repeal
the luxury" tax on household furni-
ture, trunks and other manufactured
goods, it did shift the tax from the
consumer to the manufacturer. Under
the old law the consumer paid the
tax on the basis of the retail price.
This retail price, Of course, repre-
sented all of the various profits made
by the manufacturer and the middle
men. Under the new law the tax is
all paid by the manufacturer upon
the basis of the manufacturing cost.
in the aggregate this tax
amounts to quite bit, as a rule it is
so small in each Individual case that
the manufacturer pays 1T without
passing it on.
The public is also relieved of the
taxes which have been paid on toilet
soaps, powders, etc. This tax amount
ed to one cent on every 25 cents
worth Of perfumery, cosmetics, toilet
proprietary (patent) medi-
cines, dental supplies, etc, etc.
The tax upon soft drinks and ice
cream is also repealed. The public
gains more by the repeal of these
taxes than the government loses, for
it was admitted that although these
taxes were collected of the public, a
very small per cent Of them were
ever turned over to the government
because Of the inability to establish
ing a system for checking up and en-
forcing their payment.
The tax upon insurance premiums
is also repealed.
The following table shows the total
income tax a married man without
or children) will pay
under the new tax law, together with
a comparison of what he has paid
under the old law.
Total tax Total tax
Income. old law. new law.
$ $500 ........S 20 None
5000 ......... 40 20
1000 ......... so 60
5000 ....... 100 100