Evening star., 1926-03-14
BENEFITS OF NEW
!. TAX RATES MANY
Regulations of Internal Reve-
nue Bureau Show Changes
in 40 LevieS.
By Consolidated Press.

BY Consolidated Press.
While somewhere around five million
individuals, subject to filing F'ederai
income tax returns this year, VIII nave
completed the duty tomorrow nisht
with more or less joy at discovering
The effects of the lower rates OF the
new revenue act, regulations prepared
this week by the Internal Revenue gu
reau make plain that all the dement's
Of the new law are not to be feapeu AT
one harvest.
The thrill of pleasure experienced
by the fact that Uncle sam this year
rates a wife as worth 81 900 more in
deductions than he did last year may
he tempered somewhat by wonder why
a child or other dependent has not m
creased above the old S400 deduction
value, but the individual taxpayer
probably will find some consolation Tor
this perpleXity III eliminattonS or re-
ductionS in various sales and occupa-
tional taxes. which more or less aftect
the cost of living. Nor are these latter
benefits confined solely to those who
pay income taxes.
40 Ievies Affected.
During consideration by Congress
OF a new revenue bill, attention nat
urally is focused upon income tax
rates, corporation taxes and other
items which are major from the
standpoint of revenue to the Gov
ernment. AS 1t matter OF fact, the
1926 tax law affects changes In some
10 taxes imposed by the United
states Government.
In the regulations prepared by the
bureau. all these changes are
brought together closely so as TO
int, nf
OF the new law.
Not only does this new act provide
lux changes scattered as to effective
dates from the hour 1t was signed by
the President. 1929 am, FebruarS
IS, reaching forward to January l,
1928, but il goes back into the past
and provides for refunds in certain
taxes as far as the middle OF IVA.
$4,000, 900 Saved OH Autos.
The tax on tires. tubes and auto
mobile accessories was repea ed ell
Yective with the signing of the new
law, and thereby $25,000,0o0 will be
saved taxpayers in the ensuing II
months. The s9,0O0,000 which would
have been collected by the Treasury
from sales of motor trucks In the
next year also disappeared on the
same date.
Here are some Of the other tax
i.ems which were eliminated Febru.
. ary 26, together with the revenue 1t /.
estimated they would have produced
in the next year: Cameras ana lenses,
500, ,00O; Photographic f'r's ""'
plates, S750,000; firearms and aminuhi'
ton excepting revolvers), s5,sou,ooo;
smokers articles, $4,000; WORKS or
art, $650,000; and jewelry, SS.o00, ,OoO.
y, i.lV,
was imposed when that game was the
fad of the moment, has been repealed,
it's revenue having dropped to an In
significant $1,000.
Refund for Dealers.
The decrease in the tax on passen-
ger automobiles from TO 3 per cent
OF the manufacturers selling price
will soon become effective on and after
March 20, with a refund of the Ia:
raid on cars remaining in dealers
hands on that date. This will save
motorists SAG, 400, 900 in the folowtn
II months. The lower rates on cigars
looping off S17,000,000 revenue in
wear. becomes effective March 20 also
but the special tax on tobacco manu-
facturers yielding S1,120,0O0, is not
eliminated until June 30.
The stamp taxes on deeds and con
veyances, proxies and cuStomhouse
papers are eliminated on and afte
March %. saving taxpayers $5,25o,OOO.
Occupational taxes on brokers, op-
orators OF automobiles for hire. bowl
ing alleys, billiard halls, shooting gal
leries and riding academies are elimi-
mated after June 80, saving the per-
sons interested some $4.o00.000.
Theater Ticket Limit Raised.
Extension Of the exemption from
TAX 10 theater tickets costing not more
than IS cents the old figure was 81
cents) will become effective March 29,
and will affect a saving of s9,000,0Oo
in q year.
The gift tax was repealed as of last
January /, with provision for refund
Of a percentage back to June, 1924
The new rates of the estate tax be
came effective February 26, with re
fund on amounts paid ON estates tax
able after June, 1926.
The new alcohol tax became opera
tive February 26. but there will be
4 further reduction on January l.
1923.
On the other hand, corporation