The Lehi sun. [volume] (Lehi, Utah) 1913-1949, 1922-01-05
NEW.INCOME TAX
LAW IS IN EFFECT
WAR TAX rs REMOVED FROM
MANY ARTICLES ON THE
FIRST OF JANUARY
Tax ls Taken From Freight and Pas.
senasr Tickets, SON Drinks,
shoes and Clothing. New Tax
Placed on Some Articles


taxes voted by congress last month
became effective January LIST. Here's
how It will affect you.
When you ride on a railroad train
or an inland or coastwise steamer you
no longer viii have to pay the govern
ment 8 per cent Of the amount OF your
fire and 8 per cent Of the cost OF
your seat, berth or stateroom.
When you ship freight you will not
be assessed an extra 3 per cent OF the
cost Likewise you can send pack
ages by express or parcels post without
having to give up "war tax"
When you visit the corner drug
store for a bottle OF proprietary medi-
cine, a tube OF tooth paste, toilet
preparation or the like you will escape
the vexatlous stamp taxes.
When you 20 to soda fountain you
no longer will find Uncle Sam holding
out his hand for penny on each 10
cents or fraction that you pay the
clerk for a drink or n plate of ice
cream.
II you want to sport n pair OF shoes
costing more than $40 or n shirt cost
Ing more than 50 you will not have to
pay out n tax. These and all of the
other so-called luxury taxes on cloth
ing, as well as those on umbrellas,
parasols sunshades, picture frames,
trunks, vallses. pocketbooks, etc. went
into the discard Monday.
II you live In a place that still can
boast Of a 10-cent movie show or 9TH
er place OF amusement you viii not
be assessed n penny tax. n the charge
exceeds 10 cents, however. you will
continue TO pay a war levy at the
present rates OF n cent for each 10
cents or fraction.
All heads OF families with depend
ents will get slight reduction in
their income tax during the new year.
the extent being SO for each depend
ent as the result OF the increase from
$500 to $500 In the exemption on ac-
count OF dependents.
II you are married and your net In
come In 1921 was 5000 or less, how
ever you get still further reduc'
ton In taxes as the normal exemption
for married men In this class has
been increased from $1,000 to $4,000
Single men are given no additional
exemption and can deduct only $1,000
from their net income.
whether you nre single or married
n You made a gain from the sale OF
capital assets, such AZ building
or stocks or bonds, you can pay the
tax on this gain at the corporation In
come rate OF IL IL per cent, instead
OF at the surtax rate II you 80 elect
If your income Is such as to put you
In the surtax paying class you VIII
pay at the new rates, which become
effective Monday and which provide
for some reduction all along the line
with the maximum at 30 per cent
ON 5000 900. instead Of 05 per cent on
81 .OOO, 900 or more. -
Some classes OF business, big and
little. get some relief under the new
Tux bill. but other classes will have
their taxes increased. Corporations
which did not fall within the excess
understanding class during the wal
will have their taxes advanced through
the increase OF IL per cent In the
corporation income tax. Corporations
falling within this class include the
railroads and public utilities, the In
come OF which are regulated by fsier'
a, or state commissions through the
control over rates.
The excess profits tax Ii repealed
effective Monday. but the result VIII
not be reflected in federal revenues
unbII the calendar year 1923 a. nex'
year this tar will be paid on the basis
of the profits made In 1921. Likewise
corporations will not begin paying al
the increased normal income tax rate
until 1928.
Many OF the special or excise tax
es imposed upon manufacturers ~
many lines OF business also went BY
the board Sunday. The trainers Of the
new tax law believe this will lighter
the burden OF the public generally II,
they hold that these taxes, with bu
few exceptions, have been passed on
Manufacturers who have their taxei
repealed are those turning out chew
Ing gum, articles made Of fur, musica
Instruments, sporting goods includln'
billiard and pool tables and balls
pleasure boats and canoes costing les
thsn 500 each; electric fans and ther
mos bottles and jugs.
Has Modal of Old Ironsides