The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-01-28

coo profit mark is reached the
5000 exemption is absorbed and
no longer applies.
1t is important to understand
that the federal law collects dit
ferent rate for the profits that
were made during the year 1921
from what it will collect during
1923 from the profits made in 1922.
Under the South Carolina house
bill, now before the scndte commit
tee. corporations aresto be charged
a fiat rate of 3 per cent on all pro-
fits. \ credit is here also allowed
in section SO of $4,000, which is
likewise absorbed when the pro-
Sit is in excess Of $4,000. The
federal corporation tax is - 1-2
per cent on corporation income.
as against per cent in the s'outh
Carolina bill. and per cent Ia the
taxpayers suggestion OF amend
ment.
The proposed house bill provides
that the flat rate Of per cent shall
apply for the calendar year 1921
and for each calendar year there
after. Under the propose amend
mcnt Of the South Carolina Tax
payers Association, instead Of per
cent provided in the house bill. III,
suggestion is that per cent fat
rate be provided for all years. The
Taxpayers Association. through Mr.
Mcleod. made an important sug-
gcStion. by which it is proposed
to put teeth in the income tax bin.
and suggested by that an amend
ment of two paragraphs looking
to the enforcement Of the bill.
which provides:
Any taxpayer that makes an
income tax return to the state
under the provisions of this act
for Il less amount than is made to
other government authorities for
the same taxable period shall be
guilty Of miSdemeanor. and
shall be fined not more than $10,-
600. or imprisoned not more than
one year. or both. together with
the cost Of prosecution.
Any taxpayer may flc with the
Tax Commission Il copy Of the in
come tax return made TO the fed
cral authorities for the same tax
able period provided in this act in
lien of the state income tax re-
turns on forms prescribed by the
Tax Commission
Tho exemptions. deductions.
credits and allowances. the fling
Of returns and all OF the details
in the bill proposed by the South
Carolina house. now before the SEN
ate. are practically Identical and in
essential details arc absolutely
idcl.,ical with the federal statute.
\ material issue that is being
much discussed is contained in
these few words OF ;l" pending
house bill:
The first taxable year TO be
called the taxable year 1921, shall
be the calendar YEAR 1921.
And throughout tho proposed
bill this strain is continued. which
looks towards the collection OF an
income tax on incomes shown dur
ing the Year 1921.
The income 20 the state under the
pending ways and means commit
tee income tax bill is estimated by
its advocates at $l.Go0.0o0. Some.
not ovcr-tricndly to the bill. say at
the rates provided it ought To raise
$1,000 600 II WIS developed at
the hearing that. with Il Strict en-
torccmcnt. there would be raiSct!
under The TaXuaycrS' Association
amendments about $l,000,00U. Ad-
vocatcs OF the houS, bill argue that
i; the amendments suggested by
the Taxpayers Association be
adopted the net proceeds would
/ be about sl00. .oco--cSidently a
very vide difference OF computa-
ton
The income tax bill is still De-
, lo;.c the senate finance committee.