Alma record. (Alma, Mich.) 1878-1928, 1921-12-29
MANY CHANGES
/. III. IN TAX LAW
TRANSPORTATION AND SODA
FOUNTAIN TAXES GONE
AFTER JANUARY l..

washing lOH, Zee. ZJ.-lne new
revenue law as signed by the Pres
ident makes many changes of benefit
to the taxpayers and equalizes the
tax burden.
The bill retains the per cent nor
NAL tax upon the first $4,000 of net
income in excess of the personal
credits and the 8 per cent rate upon
the remainder of the net income, the
same as under existing law.
The surtaX rates are adjusted so
that the maximum rate after January
p /, 1922, shall be 80 per cent instead
of 50 per cent as under existing law.
The loss of revenue from this change
as compared with the receipts under
existing law for the year 1922 is es-
timated at $55,000,000.
The bill increases the personal
credit from $4,000 to $4,000 in the
case of married persons and heads of
families having incomes not in excess
of $4,000.
1t increases the exemption for de-
pendenst from 5000 to $500.
The loss in revenue as compared
with the receipts under exising law,
due to the increase in the personal
credit and the credit for dependents
is estimated at $70,000,000.
The excess profits tax is repealed
as of January /, 1922, and 5 per
, cent corporation income tax is substi-
tuted therefor. The loss in revenue
from the repeal of the profits
tax is estimated at S400,000,00O and
the gain in revenue from the per
cent income tax is estimated at $780,
100000.
The $4,000 exemption is limited to
corporations having incomes OF $25,-
900 or less. The gain in revenue
from this amendment is estimated at
S30,000,000.
The estate tax rates upon the
amount of estate over $l5,000000,
are increased as follows:
80 per centum of the amount by
which the net estate exceeds Sl5,000,-
coo and does not exceed S25,0000 900.
80 per centum Of the amount by
600 and does not exceed $4,000 600.
40 per centum of the amount by
which the net estate exceeds $4,000,
coo and does not exceed $780, 900.
80 per centum of the amount by
which the net estate exceeds $780,
100000.
Under existing law the rate upon
the amount of the net estate in excess
of S10,C00,000 is % per cent.
The passenger, freight, express,
pullman, and oil by pipe line trans
rcrtation taxes are repealed as Of
January /, 1922.
The stamp tax upon parcel-post
Apackages is also repealed as of Jan
uary /, 1922. ~
Under existing law the annual rev.
onue yield from the transportation
taxes is about S290,000,000 and from
parcel-post packages about $20,000,-
000
The bill imposes the following
taxes upon beer, wine and whiskey:
\ tax upon medicinal beer of GO
cents a gallon. The rate under exist
, ing law is So per barrel. A tax upon
medicinal wine at Sl.20 a gallon. The
rates under existing law vary accord
ing to the alcoholic content.
An additional tax upon whiskey
withdrawn for medicinal purposes OF
$420 per gallon.
1t is estimated that the additnal
revenue from the taxes on beer
wine and whiskey will amount t
about $52,O00,OOO.
The bill imposes tie following
taxes-upon soft drinks:
A tax of cents per gallon upor
cereal beverages, carbonated bever
ages, and still drinks. The existing
law imposes 10 per cent manufac
turers' sales tax upon cereal bever
ages and 10 per cent upon all othel
beverages.
A tax of 2 cents per gallon upor
mineral waters selling at over II
cents per gallon. Under existing Law
natural mineral waters selling at owe
10 cents per gallon are taxed at
cents per gallon and artificial minera
waters at 10 per cent Of the manufac
turer's selling price.
n tdA UDOil lIillolCu VI lOUfi
syrups of ~ cents per gallon, an
upon carbonic acid gas of cents pc
pound.
A tax upon finished syrups sold t
bottlers of cents per gallon. TIL
taxes imposed upon soft drinks an
syrups and carbonic acid gas are in
tended to place the taxes upon a
forms of beverages upon an equa
basis.
The bill exempts free admission
and admissions of 10 cents or les
from the admissions tax.
The excise taxes on the folowin
articles are repealed as of January
1922:
Musical instruments, sportin
goods, chewing gum, portable eleC
trio fans, thermos bottles, article
made of fur, toilet soaps, petroleum
je,ies, tooth and mouth washes, der
tifrices, tooth pastes and toilet pow
ders.
The tax on candy is reduced from