The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1922-01-02
TAKING OFF SOME
Of THE TAXES
Al the Opening of the Year Federal
Burdens Will Become, If Not
Lighter, Less Annoying

Washington, Jan.-2. 2.-fBy the Asso-
ciated Press1 Changes in federal
taxes voted by Congress last month
came into full force yesterday. Here's
how they will affect you
When you ride on a railroad train
or an inland or coastwise steamer
you no longer will have to pay the
government eight per cent or the
amount of your fare and eight per
cent of the. cost of your seat, berth or
,stateroom.
When you ship freight you will not
be assessed an extra three per cent of
the cost Likewise you can send pack
ages by express or parcels post with
out having to, give up war tax"
When you visit the corner drug
store for a bottle of proprietary med
icine, tube of tooth paste, toilet
preparation or the like you will escape
the vexatious stamp taxes.
When you go to a soda fountain
you no longer will find Uncle Sam
holding out his hand for a penny on
each ten cents or fraction that you
pay the clerk for drink or a plate
of ice cream.
If you want to sport pair of
shoes costing more than $40 or a
shirt costing more than So you will
not have to lay out tax. These and
all of the other so-called luxury taxes
on clothing, as well as those on UNI.
brelias,. parasols, sun shades, picture
frames, trunks, yalises, pocketbooks,
ETC., went into the discard.
If you live in place that still can
boast of a ten-cent movie show or
other place of amusement you will not
be assessed a penny tax. If the charge
exceeds ten cents, however, you will
continue to pay war levy at the
present rates of cent for each ten
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 result of the increase from
5000 to $400 in the exemption on ac-
count of dependents.
If you are married and your net
income in 1921 was $4,000 or less, how
ever, you will get a still further re-
Iduction in taxes as the normal exemp-
tion for married men in this class has
been increased from $1,000 to $500.
Single men are given no additional
exemption and can deduct only $1,000
from their net income.
Whether you are single or married,
if you made a gain from the sale of
capital assets, such as building or
stocks or bonds, you can pay the tax
on this gain at the corporation income
rate of 1919 per cent, instead of at the
surtax rate if you so elect.
If your iacome is such as to put
you in the surtax paying class you
will pay in 1922 at the old war rates,
but in 1928 you will pay at the new
rates, which become effective tomor-
row, and which provide for some re-
duction all along the line with the
maximum at so per cent on 100000
instead of 65 per cent of 81 ,000,0 900 or
more.
Some classes of business, big and
little, get some relief under the new
tax bill, but other classes will have
their taxes increased. Corporations
which did not fall within the excess
profit making class during the wal
will have their taxes advanced thru
the increase of 212 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 fed
eral or state commissions through the
control over rates.
The excess profits tax is repealed
effective tomorrow, but the result will
not be reflected in federal revenues
until the calendar year 1923 as next
year this tax will be paid on the basis
of the profits made in 1921. Likewise
corporations will not begin paying at
the increased normal income tax rate
alntil 1928.
Many of the special or excise taxes
imposed upon manufacturers in many
lines of business also go by the
boards. The trainers of the new tax
law believe this will tighten the bur
den of the public generally as they
hold that these taxes, with but few
exceptions, have been passed on
Manufacturers who have their taxes
repealed are those turning out chew
ing gum, articles made of fur, mus