The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1922-03-16
Income Tax Bill
Now Law of State

income tax Dill. This has been prl-
marily a session devoted to an effort
towards doing something definite for
the reduction of the tax levy on Wis
ible property.
The two legislative branches were
at decided variance over what is
known as the committee bill and
what has been called the McGhee
substitute. Until early this morning
the members of the free conference
committee were in a deadlock, but a
compromise and agreement was ef-
fected evidently along these lines:
Those who advocated the committee
or house bill surrendered that text
and machinery to the advocates of the
McGhee substitute, by their consent
ing to increase the rate from 70 per
cent. to 33 1-3 per cent. for the state.
based on what is paid to the fed
eral government.
First, net incomes of over $4,000
for married person derived on busi-
ness incomes during the year 1921
will be taxable and collectable this
year.
For the first year, that is, for the
taxes collected this year on the rev.
enues of 1921, an affidavit is to be
submitted to the tax commission,
stating what amount has been paid
to the federal government, and the
income taxpayer will be due the
state one third of the amount paid
the federal government for his in
come tax. A copy of the receipt
from the federal government must
be submitted, together with the af-
idavit and payment based upon one
third of the federal tax.
After this year, that is, upon in
comes derived subsequent to 1921,
the taxpayer must submit dupli-
cate of his federal income tax re-
turn. The idea is that the state
and federal income tax returns, that
is, as far as returns themselves are
concerned, should be duplicates.
The taxpayer here again pays the
state one-third of what he pays the
fodara1 ooyernment
These personal and corporation
returns are to be made in the same
method, that is, either by affidavit
or duplicate returns, and the same
basis of payment is applicable on
net incomes.
The exemptions, allowances, cred
it's, deductions and everything else
along these lines are absolutely
identical for the state as they are
for the federal government, except
that provision is made that the state
shall not tax federal incomes, pen
sions, interest from government
bonds and other exemptions that the
state must recognize.
The exemptions for individuals,
corporations, dependent children,
taxes, losses and the like are iden-
tical in the free conference bill,
which will be. the law, and the fed
eral statute.
The free conference bill refers to
and enacts for this state as did the
McGhee substitute, the federal in
come tax statute of 1921 and all of
the rules and regulations of the in
ternal revenue department., on the
subject.
The free conference committee late
this evening added several sections to
the income tax bill.
First, it included excess profits,
that is, under the bill as adopted
this state will collect the 33 1-3 per
cent. of what excess profits are paid
the federal government. A penalty
is provided for not making returns at
the proper time.
A new section was added to pro-
vide that any person or corpora
ton doing business in several
states shall pay an income tax on
all net earnings accrued from opera
tions or other sources in this state.
The income tax act was ordered
ratified and its friends figure it
will, as amended, raise at least a
million and a half dollars.
There are no rates provided for
in the bill, either as to normal or
surtax, the basis being simply one
third of what is paid to the federal
government, either for normal or sur
tax.
Insurance premiums, insurance
dividends and the profits of insurance
companies are not taxable. There was