Smyrna times., 1922-01-04
MANY Of SO-CALLED NUISANCE
END WITH THE OLD YEAR
TRANSPORTATION AND FREIGHT
TAXES OFF-SO is ICE CREAM
Taxes on Many Luxuries Are RemOv-
ed-MOvies Where Admission is
10 Cents or Less No Tax

Sam offered almost everybody New
Years present in the form of reduced
taxes. The gift was rendered at mid
night, but deliveries will be made
gradually throughout the year.
Treasury Department experts esti-
mated that, if every man, woman and
child could share equally i'll the re-
duction of tax burdens, it would mean
81 more in each pocketbook at tile end
of the year 1922.
The new Revenue bill, signed by
President Harding on November 23,
carries a number of rates which be-
comes effective now.
Transportation taxes alone will be
decreased 1920, 100000 during 1922 as
the result of reductions effective Janu-
ary l. This is entirely apart from q
further reduction in transportation
charges, effective the same day, by |
reason of lower freight rates on agri- |
cultural products, which will lop off |
$9O,OOO,0OO from the earnings of the |
roads in the year.
Should not more persons travel dur
ing 1922 than did in 1921 they would
save $80,000,000 on their passenger
tickets and Pullman charges alone.
The railroads have reported that their
passenger and Pullman revenues this
year aggregated S1,0O0,O0O,OO0, and
the reduction provided for January 1
IN the new law is eight per cent.
Tax reductions of three per cent are
carried in the same measure on all
freight, express and parcels post
rates.
Many of the tax reductions will not
be felt by the average American con-
sumeer, but the changes in the rates
on income taxes are expected to have
a direct appeal to larger number of
taxpayers than any other class.
Reductions in the income tax rates
and the surtax rates will be applica-
BILE to the earnings of individuals dur
ing 1921, 50 the decreases will be felt
with the payment of the next income
tax installment.
That is not true with reference to
the excess profits tax repeal, applica-
BILE to business. Excess profits tax
must be paid at the old rates on bust
ness done in 1921. Business will not
enjoy any effect of the excess profits
tax repeal until 1923, when it pays
taxes on business done in 1922.
With reference to individual income
taxes the greatest percentage of re-
duction in taxes comes in to married
men with incomes of $4,000 year and
less. Heads of families in that class
are allowed exemptions from all taxes
on the first $4,000 of their income, in
stead of $4,000 as heretofore. In ad-
dition, an exemption of $400 instead
of 5000 is allowed for each dependent
child.
The normal tax rate on the smallei
incomes being A per cent, a marrieC
man is saved 500 on his income ta1
by reason of the $500 increased ex
emption allowed by the new rates eff
fective January /. If he should hap
pen to have two children he is allow
ed a further reduction of SIG.
Thus a married man having twr
children, who had an income of $500
a year, paid income taxes of $104 thi
year, whereas next year he will pa,
S68, a saving of $36 brought about b.
his increased exemptions.
A married man without dependent;
having an income of $500 year, pai
income taxes of $40 this year. In 1872
he will pay $50 on that income a re
duction of so per cent.
If his income is $4,000 a year, n
paid taxes of $50 under the old rate
and will pay $50, a reduction of
per cent, under the new.
If his income is $4,000 year an
he had no dependents, ne paid S12
a year under the old rate and will pa
$100 under the new. If $4,000, b
paid S17O and will pay $3.50.
Above that figure the saving is nel
ative until the income reaches $50,c
and above. A married man wlthol
dependents with an income of $4,000
now pays income taxes of 1919
where as next year he will pay $8,46
If it is S1,OOO,OOO he has been payir
1868, 100, but will pay $550,640.
Other taxes which will be missed
a large number of people are the .
called nuisance taxes, such as the pc
ny taxes on a 10-cent glass of 500
water, and the tax of few cents (
a box of rouge or tooth paste.
Taxes which have not been repeal
entirely, but which will be cut, a
those on candy, cereal beverages al
works of art.
Luxury taxes, such as have be-
paid on silk shirts and silk ,tockin
of the higher grades, are repealed.
Despite the cut made in one fol-
or another, the new revenue bill
expected to yield during the new ye
s3,25O,0OO, 900.
Kent Levy Court Meets at Dover
I holI