Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1922-01-04

Tax On ZEE Cream and Soft Drink.
Now Reno vel. Other In !.
terestiing Change.

The following statement is issued
by Collector Of Internal Revenue for
1.-The District Of Mime sota:.. .s. :
"Ena ctment Of new revenue legis-
lation has brought to. the. Offices of
Collectors Of Internal Revenue a, flood
of..inquiries regarding various: provis:
lions. The Revenue Act Of 1921 be-
came effective November %, 1921, ''un-
less: otherwise provided for.
+ To. avoid error. in. the preparation
of their returns and later difficulties
with: the, Bureau of Internal Revenue,
taxpayers are advised to carefully note
the changes, and when they become
effective. ~. =.
+ The excess profits tax is: repealed
as of january. 1922: The rates for
1921 are unchanged. = =, b.
The surtaxs rates for the calendar
year 1921 are unchanged, and range
from l, per cent on the amount. of net
income between $4,000 and. $4,000 to
Is per cent on the amount: Of net is
come in excess Of $1,000, 900. For the
calendar year>.1922 the surtax. rate, I
per cent on the amount ofsnet income
between $4,000 and, $4,000 to SO per
cent on the amount by: which; the. net
income exceeds $200,O00.0o:
/ "The exemption allowed for. de-
pendent: is increased from $500 to $500.
Married persons living with husband
or. wife and heads of, families are al
lowed personal exemption of $4,000
(instead of $4,000 unless the net in;
come is in, excess of $4,000, in which
case the personal exemption is only
$4,000. The act provides: that in no
case shall: the reduction of the per.
:sonal exemption from $500 to $4,000
operate to increase the tax, which
would be- payable. if the exemption
were $4,000 by more than the amount
of the net: income in excess of $4,000.
This is to; overcome the disparity in
|the case Of two taxpayers, one Of whom
is Just within the lower $4,000 exemp-
|tion and the other just within the
higher $4,000 exemption -
Single persons. and married per-
sons not living with: husband. or wife,
are allowed an exemption Of $1,000.
Nonresident aliens are allowed sin
|.gle. persons exemption Of 81 1000. Per-
|ssons having. gross income. for 1921 of
$4,000 or over are required to make
a: return, regardless Of the amount Of
net income. TX ....
+ provision is made for the repeal
as of January. 1, 1922, Of the, tax on
/ stockholders Of a personal s service
corporation as SUCH. After that date
/ such corporations are to be taxed in
the same manner as other corpora.
tions. s. -,
/ .'The income tax on corporations for
the calendar year 1922 and thereafter
is increased from 10 to 121s per cent.
The $4,000. exemption heretofore al:
lowed corporations is to be granted on
~ to those corporations whose net in
come is $25, 900 or less.
!. MANY. persons are under the inn
preston that the tax: on ice cream,
soft drinks. etc, monthly returns of
which are required, have been repeal
ed with, the enactment Of the new act.
These taxes remain; in. force until the
end Of; the calendar year 1921.
mo change is made in the tax on
admissions, except that after January
]. 1922, there will be no tax where ad-
mission is. less than. 10 cents. Effective
January 1, 1922, the following taxes
are also abolished: on musical instru.
.m p nts, sporting goods, chewing. gum,
,portta b electric fans, thermos bottles,
fur articles, pleasure boats. and pleas
Esure canoes, unless sold for. more than
$500, toilet articles, medicines and
numerous articles of apparel.
ION and after January /, 1922, the
tax on various works of art is reduced