The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-05-10
Big REVENUE BILL
BECOMES LAW WHEN
PRESIDENT SIGNS
Measure Adds an Estimated
$417,ooo,ooo to Govern
ment's Annual income

Washington. May lO-P,-Presi-
dent Roosevelt added all estimated
SAT- 900 900 Thursday to the nations
annual revenue by signing into law
the 1894 tax bill.
The act increased tax levies al
ready amounting to $3.50 ,000, 900 by
strengthening existing law against
evasion and adding new sources Of
income.
Plugging loopholes disclosed by the
senate banking committee to be avail.
cble to the wealthy was congress mo.
tive in writing the new law, but be-
fore the bill went to the White House
some rates were boosted and the in.
come tax levies revamped.
The new law provides:
Heavier taxes on higher incomes
gifts, estate transfers. corporations
and personal holding companies.
Partial income tax publicity.
Elimination of consolidated corpora.
ton returns.
Repeal Of the eight percent normal
tax on individual net incomes above
81 900 with surtaxes to start at $4,000
instead Of $4,000.
A Scents pound tax on Philippine
cocoanut oil, the revenue to be re-
turned to the iSlanu treasury
Will BE Felt in 1885
Experts estimated the full effect Of
the law will not be felt until 1885
They counted on only $l67, 600 900 by
the end of the next fiscal year on
June 80. 1885.
A one-tenth Of one per cent tax on
the declared value OF corporation cap
ital stock and five-per-cent levy on
earnings above sos, 600, 0OC annually fo1
the largest single item in the act.
The new income tax schedules levy
q flat four percent normal rate on the
first $4,000 Of individual, net income
They retain the 81 900 exemption for
single persons, $500 for married and
$500 for each minor dependent, which
may be deducted from net income to
give the taxable income
A 1O-per-cent credit is allowed for
all earned net income up to $4,000
thereby reducing payment on small
incomes.
The old eight percent normal tax
on net incomes above $4,000 is elm
mated, but surtaxes now begin at
-, 900 instead OF $1,000.
% Brackets Listed
These surtaxes start at four per-
cent and swell through % brackets to
50 per cent on excuses over $1,000, 900
A new capital gains and loss pro-
vision was a direct result of senate
testimony that partners in ]. P. Nor
gan & Company and other New York
houses paid no income taxes in some
Of the depression years. From now
on, capital losses may be deducted
from taxable income only to the ex-
tent Of capital gains, with the excep-
ton that $1,000 Of any excess loss may
be charged off from ordinary income.
A new gift tax schedule runs three
quarters Of the estate taxes.
New language will seek to insure
that gasoline and oil taxes are paid
by the original producer.
The new publicity provision will
open to public inspection a separate
statement to be filed by income tax
payers giving the gross and net in
come. total deductions and credits and
the tax payable.
Taxes on candy and soft drinks,
furs valued up to SIS and jewelry not
worth more than $25 are repealed.
The five cents q 500 tax on the sale
OF produce for future delivery Is
slashed to three cents. January Is
set as the date for repeating the bank
check tax.