Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1922-01-11
TAX ON MANY
ARTICLES LIFTED
Radical Changes in Revenue Laws
Inaugurated With New Year.
Tax on Automobiles Re-
Mains Undistrubed.
RAILWAY TICKETS AND
SOFT DRINKS HEAD LIST
Toilet Preparations and Wearing APP
parel Also Included Among Nu-
merous Articles Which
Now May Be Pur-
chased Tax r
Free. 81

washington, IL. C.-lIhPoftaiie 'an
changes became effective Jan. l, un-
der terms of the new revenue act.
Many of the alterations, apply
ing to business and private IN
comes during the coming year, al
feet payment to be made during
1928. This is true of the excess
profits tax repeal, reductions in
surtax rates and the new corpora
ton tax.
Other changes apply TO payments
to be made during 1922. Repeats OF
taxes collected currently-ike those
on transportation-are of course at
once effective.
This change is retroactive, apply
ing to incomes during this year and
will apply on returns to be made
Immediately after the first of the
year.
Changes effective Jan. /, 1922,
which will be Immediately reflected,
include:
Repeal of transportation taxes on
freight rates, passenger fares, pull
man fares, express packages and
transmission of oil by pipe lines;
| the abolition of the freight tax is
equivalent to 3. per cent reduction
in freight rates.
Repeal of the insurance taxes. :
| Elimination of taxes on musical
instruments, sporting goods, chew
ing gum, electric fans, thermos bot
ties, furs, toilet soaps, leased picture
films, where admission is 10 cents or
less. IN
Reduction of the, lax on art works
to 5 per cent on sale to CONSUMER
Ionly. s an ~. .sat
Changes in the luxury taxes Ton
shoes, hats, stockings, etc.,). so SIN
classes of articles are taxed = u
pei cert 81 ttas sls sas pro,
n where before twenty classes pait
! 10 per cent on the retailers price.
Elimination, of parcel post tax Of
cent on each Is cents charge.
J Elimination of tax on bonds OF
indemnity and surety.
Taxes which become effective Jan
1, 1922, and which will apply to pay
ments made during 1923, include:
Repeal of the excess profits tax
Reduction in surtax rates from q
maximum of 60 per cent to a
maximum Of 80 per cent, reductions
extending to incomes of all sizes
and benefting small incomes the
most.
The internal revenue bureau al
ready has sent to its agents
throughout the country instructions
to stop the collection of the taxes
affected with the beginning of the
new year.
The reduction during the "first
full year." in which all the changes
will be effective is calculated at
SS15, 100000. This is the amount
that tax payers will keep in their
pockets under the new law. The
"first full year." however, is not the
calendar year 1922, because payment
of surtaxes, excess profits taxes and
other levies, based on 1921, will con-
tinue.
Treasury experts insist that a
calculation of the actual saving dur
ing 1922 under the new law is inn
possible, because of the difficulty in
predicting the trend of business and
the "hang over" of various levies
But they figure the governments in
come under the revenue law will be
as follows:
During the fiscal year 1922, July
/, 1921 to June 30, 1929, $3,214,-
900 100000.
During the fiscal year 1923, (July
/, 1922 to June 30, 1929, $751;
600, 100000.
| During the calendar year 1923, 81
$50 900 100000.