The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-09-02
TAX Law TO
AID PEOPLE
Who SPEND
How the New Revenue Bill
Will Affect You Is
Here Told
nY HARRY HUNT

ny HARRY HUNT
WASHINGTON. sept. Ats go.
ing TO be cheaper TO scrub your
teeth, once the republicans get their
new revenue bill enacted. than Il was
when the democrats were in power.
Also. II win cost less 90 decorate
your home with art bronzcs or stat.
nary, or TO buy Sonny that baseball
bat and glove.
And every time YOU take your
wife or sweetheart five-pound box
Of chocolates you'll be a whole dime
ahead. II the confcctioner plays
square with you and gives you the
benefit OF the two cents per pound
tax reduction OF the new law
MORE yOu SPEND
MORE YOU SAVE
An analysis OF the new revenue
bill. In the form In which II was
paxs<d by the house. shows that the
biRg<r spender 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 tho number
of Ice cream sodas and the amount
q candy you consume. denying your
wife fancy fiummeries and cosmetics.
travelling little and putting your pipe
IN shirt sleeves instead OF a smoking
Jacket. the bill holds only one relief
Tor sou. That Is:
IL you have big family. you'll
eet 4t0o exemption on each child.
tor income tar purposes. instead OF
~ an allowed by the democratic
NV.
On the other hand. while the new
TAI schedules viii save you that two
cent tax on your weekly Ice cream
ooaa. and two cents on each pound
of candy. not 70 mention taxfrc
tpoth-pa.te and npsticks. the assess
uent Of John ID. and other gentlemen
With Incomes above the million dol
lar mark will be reduced s3so.ooo on
each million OF net taxable income.
AVERAGE CITIZEN
10 GET RELIEF
The average citixen. however. with
Income Of from $1,000 to $1,000 a
yonr. win feel some relief under the
peosislons OF the law as passed by
the house.
Taking income taxes first. the new
nv Increases the exemption OF the
head Of = family from $4,000 to ga
~. where the net taxable income Is
leas than 5000 per year. Where the
not income Ii 5000 or more. the
assumption as head Of family re-
maine a $4,000.
The exemption for each dependent
child under Is. or for such other
person totally dependent upon the
b<od OF the family. Is increased from
~ to $500.
with these exceptions. the income
~ INV remains unchanged for the
taxpayer on 5000 to SEC. 900 income
But II you are not one OF the super.
eoxpayers. with a net income exceed.
~ 5000. you win be more inter.
o4<od b the amendment which
0ek1kas out all higher surfaces than
~ ~ per cent fixed for income
o1ove that amount.
President Harding and judges OF
N supreme and inferior courts are
tel3eved from any tar on their fed.
ogn1 salaries.
AMI AND NAVY
G0FJCERS HIT
Corporation income taxes are
nmended. TO provide a tar OF 1zh
7 per cent instead Of 10 per cent on
1T income. effective in 1922.
The graduated excess profits tar
- corporations Is repealed. effective
Ian. !. 1872.
Taxes on insurance companies are
1lxed 1t 1z4 per cent Of their net
income. beginning with 1872. instead
- tax Of eight cents on each 800
- insurance written and 81 for each
~1.ooo Of surplus and reseryes-
The transportation tax OF eight
pr cent on passenger business and
uve per cent on freight Is repealed,
e6ective Jan. 1. 1922.
o. the excise taxes. those on soft
drinks and ice cream, considered oh.
tectionabie because so obtrusive, are
repealed.
the tax on candy IL reduced from
nve cents to three cents a pound.
0PORTING GOODS
TAKES REDUCED
Taxes on sporting goods are re.
auccd from ten TO five per cent.
Art goods are assessed at five per
cent instead Of ten per cent. and the
rate on the major items In the ex.
c1se Hist scaled down.
While the rate on yachts is re-
ouced from ten to five per cent. how
ever. luxury tax IL placed on many
ARTICLES beginning at figures cons,d.
ererably lower than those now in
force.
For instance. the tax viii 20 nm
carpets and rugs at value of 81 90
PEI square yard instead Of 81: ON
umDrelias at $3.50 Instead OF 81: ON
Grips at SIS instead OF SIS. etc.
However. It is altogether too soon
20 attempt to compute how much
you Will pay Uncle sam in taxes
under the new bill. For the senate
mas not had its say as yet. and the
Dill that energies from the senate
mill may differ radically from that
passed by the house