The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-12-14

The following statement is issued
by Collector of Internal Revenue
John D. Mcneil, of Birmingham. Al
ALBANIA, district.
Enactment of new revenue leg
islation has brought to the offices
of collectors of internal revenue n
flood of inquiries regarding vari-
GUS provisions. The revenue act OF
1921 became effective November %,
1921, unless otherwise provided for
ITO avoid error in the preparation
OF their returns and later difficult
ties with the bureau of internal rev.
enue, taxpayers are advised to care
fully note the changes and when
they become effective.
The excess profits taxais repealed
as of January /, 1922. The rates for
1921 are unchanged.
THE surtaX rates for the calendar
year 1921 are unchanged, and range
from one per cent. on the amount
of net income between $1,000 and
$4,000 to So per cent. on the amount
of net income in excess of $1,000
600. For the calendar year 1922
the surtaX rates range from one per
cent. on the amount of net Sncome
between $4,000 and $4,000 to 80
per cent. on the amount by which
the net income exceeds 100000.
The exemption allowed for a de-
pendent is increased from $500 to
$500. Married persons living with
husband or wife and heads of fam
lilies are allowed a personal exemp-
tion of $500 dnstead of $4,000
unless the net income is in excess
of $4,000, In which case the personal
exemption is only $4,000. The act
provides that in no case shall the
reduction of the personal exemption
from $1,000 to $1,000 operate to in
crease the tax which would be pay
able If the exemption were $500 by
more than the amount of the net
income in excess of $4,000. This is
TO overcome the disparity in the
case of two taxpayers. one of whom
Is just within the lower $4,000 ex-
emption and the other Just within
tic higher $4,000 exemption.
Single persons, and married per-
sons not living with husband or
wife, are allowed an exemption of
$1,000. Nonresident aliens are al
lowed a single personal exemption
of $1,000. Persons having gross in
come for 1921 of $4,000 or over are
required to make a return, regard
less of the amount of net income.
Provision is made for the repeal
as OIL January 1, l922, of the tax
on stockholders of a personal SER
vice corporation as such. After that
date such corporations are to be
taxed in the same manner as other
corporations.
Corporation Tax Increased
THE income tax on corporations
for the calendar year 1922 and there
after is increased fromA10 70 1914
per cent. The $4,000 exemption here
tofore allowed corporations is to be
granted only to those corporations
whose net income is $4,000 or less.
Many persons are under the i'm
preston that the taxes on ice cream.
soft drinks. etc. monthly returns of
which are required, have been re-
pealed with the enactment of the
new act. These taxes remain In
force until the end of the calendar
year 1921.
mo change is made in the tax on
admissions, except that after Jan
uary !, 1922 there will be no tax
where admission is 10 cents or less |
Effective January 1, 1922 the follow
ing taxes are also abolished: on
musical instruments, sporting goods. |
chewing gum, portable electric fans,
thermos bottles, fur articles, pleas
ure boats and pleasure canoes |
tunless sold for more than 5000, |
toilet articles, medicines and num-
erous articles of apparel.
"0n and after January !, 1922 the
tax on various works of art is re-
duced from 10 per cent to per
cent, the tax on candy from per
cent. to 3 per cent. and the tax on
carpets, rugs, trunks, valises purses,