Evening star., 1932-03-06

(Continued From First Page)
number of persons in the country sub
3ect to the income tax.
The maximum rate on incomes. he
said. would be 40 per cent, to be levied
on incomes in excess of 100000. The
normal income tax rate levied on in
comes up to $4,000 would be per
cent on the first $4,000 of net income,
4 per cent on the second $4,000 and
6 per cent on the next $4,000. The
surtax rates on incomes are graded up
TO the maximum of 40 per cent.
The earned income provisions Of the
present law permitting reduction on
the first $4,000 of earned income has
been changed so as to make the reduc-
ton apply only on the first $4,000 OF
earned income.
Mr.. Crisp estimated that 100000
manufacturers would have to be
licensed under the provisions Of the
manufacturers sales tax.
Sales Tax Exemptions Listed.
The exemptions to this sales tax, he
gave as follows: Farm and garden prod
ucts, fertilizers an ingredients OF fer
tilizers, garden and field seeds, meat,
fish, shellf1Sh and poultry, fresh, dried,
frozen, chilled, salted or in brine. bacon
or ham not packed in alright con-
tainers, butter, oleomargarine, cheese,
milk and cream in any form, eggs in
the shell, bread, flour and meals sugar,
tea, coffee, tobacco and tobacco prod
ucts paying internal revenue taxes,
water not contained in sealed bottles,
newspapers, magazines and periodicals,
books for the blind, text books for
Schools, Bibles, hymn books. prayer
books, rosaries, affairs, shrines and other
objects particularly used in religious
worship.
Manufacturers will be asked to pay
q 50 license fee. They will not be
compelled to pay the tax on goods
which they contracted to sell prior to
March l. On such goods the purchaser
will be expected to pay the tax.
Mr.. Crisp, in his statement on the
bill, said the Treasury had estimated
$1,241 100000 would be needed to bal
ance the budget by the close of the
fiscal year 1888. He said the estimates
of the increased taxes plus the saving
OF $125,000,000 in expenditures and
saving due to postal legislation now
proposed would total $1,246,000,000.
THUS We will have a $5,000,0 900
surplus in the Treasury, with the deficit
wiped out, at the close of the fiscal
year 1888 if the estimates are correct, :"
said Mr.. Crisp. II have no doubt that
the estimates are conservative. I hope
and believe conditions will improve in
the country with the knowledge that the
budget is to be balanced. If they do
improve, the returns from the taxes
levied may be In excess of the estimates
and larger surplus possible"
expectation of death" or not.
Big 1884 Surplus Forecast.
Mr.. Crisp explained that the bal
ancing of the budget would be exclusive
of the statutory debt retirement pro-
visions, amounting to $497 ,ooo, 900. This,
he explained, was not obligatory on the
Government if it did not have the
funds. He predicted big surplus in
the fiscal year 1884, making 1t possible
to reduce some of the taxes now pro-
posed to be levied.
Mr.. Crisp estimated the increase from
the revised income tax rates would be
S112,000,000.
The corporation tax, he said, is in
creased from IL to Is per cent, and
this should add $21 100000 increased
revenue. He explained that under ex-
1sting law corporations with an income
of less than $4,000 are allowed an
exemption of $4,000. Under the new
bill, corporations with an income of
less than $4,000 will receive an ex-
comes in excess of $4,000 will have
no exemption.
The estate taxes have been doubled,
with q maximum of 40 per cent on
estates in excess of 100000. The
increase derived from the additional
estate taxes are to remain in the Fed
era1 Treasury, although the States
which are allowed to claim so per cent
OF the Federal estate tax will continue
to have that privilege. He estimated
that the new estate taxes would pro-
duce $35,000,000 additional revenue.
A gift tax, Mr. Crisp said, has been
rate of 80 per cent on gifts of $10,-
100000. He pointed out that the gift
tax rates were lower than the estate
tax rates, and expressed the hope that
this fact would persuade owners of
large estates to make gifts to their
heirs at present. He said a donor
would not have to declare under the
gift tax whether the gift was made lin
expecta ton OF DEATH" or not.
WolId Tax All Admissions.
The bill proposes a 10 per cent tax
on all admissions of Is cents or over
Under the present law, tax of 10 per
cent Is levied on admissions above So.
This tax on admissions will apply to
all kinds Of performances for which ad-
mission is charged and is expected to
net the Government an additional 500
o00, 900 in revenue
A stock transfer tax of 4 cents on
each share transferred is levied This
is an increase from cents in the exist
ing law. Mr.. Crisp explained that the
stock transfer tax is made to apply
also to short selling" to which the
present tax does not apply He said he
hoped this might have a deterrent eff
feet on short selling, which is now
under criticism. The estimate. he said
Of additional revenue from this stock
transfer tax was $29,000,0O0.
The bill also provides an excise tax
OF cents gallon on lubricating oil
from which s25 100000 of revenue is ex-
pected. There is no tax now on lubri-
eating oil. Another excise tax is to be
35 cents gallon On malt syrup, a 40
per cent tax on grape concentrate and
cents gallon tax on wort From
these excise taxes, he said. a total Of
S5O,OOO,000 additional revenue is ex-
pected.
The bill levies taxes on telegraph,
telephone and radio messages as fol-
lows: On messages for which the charge
is 81 to 40 cents, a scent tax; on mes
SageS for which so cents or over is