The Holly chieftain., 1924-06-05
II Nv TAX RATES
LOWEST SINCE II
individuals Get Greatest Benefit
From New Schedule. Law Creates
Tax on Gifts and Man Iongg Sets

The new revenue law scales down
federal taxes to the lowest level
since tthc start of the war.
since the start OF the war.
given the greater relief although
most Of the remaining special war
excise taxes either are wiped Off
the statutes or reduced.
At the same time the law creates
two new taXes-on gifts und nah
igngg sets and Increases the rate
Of taxes on estates and playing
cards.
Likewise the administrative pro.
visions are revised to plug gaps
in the old law for tax eyasions and
considerable additional revenue is
expected as a result.
The net reduction, which is eX-
pected Will be shown in government
revenue next fiscal year, beginning
July i, is S3Gl 100000 but the full
effect Of the tax relief afforded will
not be shown in government re-
ceipts until the following year,
when 1t j. estimated the total re-
duction will amount to more than
O.000,0G0.
Changes il Effect in 80 Days
Changes ordered in the excise
rates go into effect after 80 days.
OF course the provisions for a 25
per cent reduction on income taxes
payable this year is effective i'm
medately, while the cuts made il
the individual income taxes are ct
fective as of January |, this year.
on taxes which are payable next
year.
The following changes are ordered
in the income taxes:
A 25 per cent discount in taxes
payable this year.
General revision of both the nor
nal and surtaX rates, amounting to
80 per cent cut on taxes levied
against incomes of 5000 and under,
An additional reduction of % per
cent which may be made on earn
ed incomes For purposes of this re-
duction all incomes of $1,000 and
under arc defined as earned, The
cut may be made only on incomes
MP to $1,000.
Exemption for heads of families
with incomes of $J.GG0 and over is
increased from $1,000 to $500, the
Same as now allowed heads Of tami
hes with incomes eff $3.50 and under
No change is made in the present
law allowing an exemption OF S!,V9J
for single persons.
List of Taxes Repealed
The miscellaneous and excise
taxes repealed and the amount OF
revenue involved are:
Telegraph and telephone messages
S3t,0C0.GG0: beverages Sl00oO,GOO,
candy S13,0G0000; knives, dirks, dag
gers, etc. $4,000: liveries, etc, Sl40
600; hunting, shooting and riding
garments SlS0.C00: yacts and motor
boats lsalc $4,000: carpets, rugs,
trunks. purses, etc, SLS0OGO0: drafts
and promisory notes $2.150,WO; the
aters, shows, circuses floor spere
81 0OGG0.l
In addition numerous other OK.
else taxes are reduced. Theater
JiihtlS VI ~ N'lllS anu t1llh'I dI'
exempted; automobile trucks, the
chassis of which sell for $1,000 or
less and the bodies for $500 or less
are exempted from the 3 per cent
tax: while the per cent levy on
automobile tires. parts and aces
sOries is cut in half
Articles selling for $50 or less and
watches selling for $50 or less. are
exempted from the five per cent
iewelry tax, as are also surgical and
musical Instruments. eye glasses
spectacles, silver plated flat table
ware and articles used for religious
purposes. The tax of two cents on
each s100 sale on produce exchange
is cut in half. re-
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