Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-06-19
NEW j. s. TAXES
|NFORCE TUESDAY
Majority Of Leyies Under
Revenue Act of 1882
Effective Then.
Nv the Associated Press.

By the Associated Press.
A Nation of 120, OO0, 900 persons, from
children to their grandparents. Will
start digging into their pockets TUESDAY
for an additional Sl,1l8, 100000 in new
taxes to aid the Government balance
its budget.
The 1882 revenue act, signed on June
6 by President Hoover and designed to
raise a total of S3,26l 100000 to meet
the Governments expenses in the 1888
fiscal year. puts most Of the new leVleS
in force at that time.
Nearly every citizen. from five-and-
ten-cent store girl clerks to the multi
millionaire, will start contributing TO
the increased levies.
Rich Are Hardest Hit.
They apply to a long list of articles
and product, ranging from candy.
chewing gum and electric light bills to
automobiles and conveyanceS OF prop
erty. The wealthy will be the hardest
hit because they purchase more Of the
articles taxed and because OF increased
levies on income in the higher brackets.
The largest part of the new duties
will be upon articles not taxed since
war days The manufacturer will pay
the tax. but in number of cases Will
pass the cost along to the ultimate pur-
chaser These levieS are designed to
raise $457,000,000 in revenue.
The new income taxes are as high
as those paid in 1921, with the normal
rates at per cent and per cent and
the exemptions cut to $4,000 for mar
ried person and ST 900 for single per-
son.
The bill eliminates the earned in
come credit which has been allowed
for several years. The Surtax rates
start at / per cent in excess Of SCI 900
and increase to SIS per cent on incomes
of more than S1,00O,000.
The higher rates are expected to raise
an additional $l78,000,000, while in
creased corporation taxes are counted
on to bring in SAL 100000.
Miscellaneous and stamp taxes will
add S197. 100000 to the Nations tax
bill. while increased postal revenue will
changes and limitation on security
losses account for the remainder of the
$1,11S.500 900.
Part of the levieS do not become eff
fective Tuesday, including the increase
in first-claSS postage from to 8 cents
which begins July 6; the second-class
postal rates on July /: the tax on boats,
July l the increased income and cor
poration taxes, which are effective from
last January /, and the estate and gift
taxes, which were effective June after
pm.
Luyuries and articles and products
not directly necessary to living bear the
brunt of the new taxes beginning Tues
day. Those levied on the manufacture
ers of the articles are listed under the
heading of manufacturers excise taxes.
In addition there are levies on mis-
cellaneous articles, including telephone
messages costing more than so cents.
Admissions to places Of entertainment
also will be taxed, along with new rates
on issues of bonds or capital stock,
transfers of stock, transfers of bonds
and conveyance of property.
Persons leasing safety deposit boxes
will have to pay 10 per cent more. the
additional cost going to the Govern
ment, and every check calling for pay
rent Of money will bear a tax Of 2
cents.
Income in Sharp Decline.
The increased rates were made neces-
sary by sharp decline in the Govern
ment's income due to falling of in
all forms of present taxes.
Income levieS, which had been the
base of the tax system, declined rs per
cent in 1881 and this year have fallen
off nearly so per cent more.
From total of 50 400 100000 In 1880,
the taxes have decreased until for IL
months and Is days Of the present fiscal
year they amount to only $3.50, 1923.
in the same period of last year they to-
tailed S1.611 $4,000.
Customs receipts and miscellaneous
taxes also declined. and Government ex-
penditures mounted due to efforts to
provide employment through public
works construction, aid to farms and
other rehabilitation moves
With but half month left Of the
fiscal year. the Government has a def
cit Of s2,781 .3o3,3l6, having collected
from all sources onlyl Sl,839, 914, 1898,
while spending $4621 .218,314.
June 80. the end of the fiscal year.
will see the second deficit in a decade
in the Treasury. Last year the Gov
eminent concluded the year with a
deficit of s903. 100000, the first since
1919. and it will end this year with a
of ,oor1v, nm nm nm