The Washington times., 1932-04-01
HOW NEW TAX
BILL RAISES
BILLION
Measure Increasing LevieS
Before House Today
For Final Action

Following is a summary of
the new billion dollar tax in
crease bill as it was before
the House today for final
action:
INDIVIDUAL INCOME TAXES
Increased all along the line,
with exemption for single man
cut to $1,000 and married man to
$2,50O. Rates, 2 per cent on first
$4,000, 4 per cent on next $4,000,
7 per cent on all above $4,000,
with surtax beginning at $4,000
and rising until it reaches IS per
cent on incomes of $5,000,000.
Total additional yield, $780,
900, 900.
ESTATE AND GIFT TAXES
$4,000 exemption. Estate tax
begins with 1 per cent on first
$4,000 above $4,000 and reaches
maximum of IS per cent upon
estates Of $4,000, 100. Gift tax
rate three.fourths of estate tax,
reaching maximum Of 3312 per
cent, or total of $2,030,250 on net
gifts of $10,000,000 under the
graduated scheme.
Yield first year, $4O,000,000.
MISCELLANEOUS TAXES
Lubricating oil, cents gallon;
imported oil, cent gallon; tele-
phone and telegraph messages, 5
cents on messages costing 80 to
so cents, 10 cents on those cost
ing more than so cents; imported
coal, So a ton; stock sales, one
fourth of / per cent; produce
sales, cents per $100; bond
transfers, one-eighth Ct ! per
cent; capital stock and bond is
sues, 10 cents per $100; real
estate and other conveyances, SO
cents per $500; amusement ad-
missions, 10 per cent over Is
cents; oil pipe lines, per cent
transportation charge.
Total yield, $312.500,000.
Wort, liquid malt, malt syrup
and malt extract containing less
than IS per cent of solids, 5 cents
gallon; if containing over Is per
cent solids, 35 cents gallon, and
on grape syrup and concentrate
containing over 35 per cent sugar,
a 40 per, cent tax is levied.
ADMINISTRATIVE CHANGES
-RepealS for net losses follow
ing year, 1881 to 1888; makes
dividends paiG from Surpluses
accruing Lefore 1881 taxable, re-
arrangeS mining depletion allow
ance, limits stock losses to stock
gains, and .'rohibits use Of for
eign tax credits to reduce Amer
lean Corporation tax below nor
NAL figur", total yield, $14S,-
100000.
EXCISE OR SALES TAXES
Candy, 5 per cent; safe deposit
boxes, 10 per cent rental; cos
1netics, 10 per cent; furs, 10 per
cent; jeGelry, 10 per cent; sport
ing goods md cameras, 10 per
cent; cereal beverages and soft
drinks, 1921 rates which affects
soda fountain drinks; matches, 4
cents per 1000; chewin,; gum, 5
per cent; radios, monographs, 5
per cent; mechanical refrigera-
tors, 5 per cent; automobiles, 3
per cent; t.ucks, Der cent; &C
ceSsories, per cent; yachts and
motorboat5, ETC., above SIS in
value, 10 per cent; firearms and
shells, 10 Pc! cent.
POSTAGE RATES-Three cents
postage except on drop letters
where there is no delivery service.
Total $135,000,000. Added yield
of $29 5000 expected in mis-
cellaneous postage rate changes
being made separately from tax
bill.
ECONOMY-Saving of $780,
00O, 900 to $24S, 100000 in Gov
ernment expenses expected.
OBSERVATION-DISCLOSURES tax
raised from IL to 1879 per cent,
with added penalty Of ~ per
cent for filing consolidated re-
turns. Exem otion for corporation
with income Of $4,000 a year or
less cut rom $4,000 to $1,Cc0.
Total Weld, $43,000,000 a year.