The Daily Alaska empire., 1935-09-23
THE REVENUE ACT OF 1885

Amend the existing revenue laws so as to yield estimated additional revenue of S250,000,000 from the following changes in tax rates:
 ESTATE TAXES-Increases the rates of the pres ent estate taxes, beginning the mpest at per cent net estates of s1o0o0 and ranging upward to 67 per cent on that part of the estate between S10- 900 and $20000000, 69 per cent that part be- tween s20O00 900 to S50O00000 and to a maximum of TO per cent all above $50000000. In addition the specific exemption is lowered from s5OOOO Gin exist ing law) to S40000 thereby providing for thorough y upward revision affecting every estate tax bracket (This section of the new act is complete substi- tute for the inheritance tax requested by the President and adopted by the House but rejected in conferenoe) Under existing law estate taxes begin at per cent on the first s1O,OO0 and range up to 60 per cent that part of the estate over Sl0- 100000. The new estate tax provision is effective as to decedents who die after the enactment of the Revenue Act of 1885.
 GIFT TAXBS-Revises the existing gift taxes so to make them three -fourths of the estate tax schedule The gift tax rates begin at 14 per cent on the first $10000 and range up to 50A per cent on $1OOO000O to s2oO00oO0 51% per cent on s200O0,OOO to $5OOOO00o and 52A per cent on gifts of than $5O,000,000. The gift tax exemp tion also is reduced from $50000 to $40.000 The gift taxes are effective to gifts in the calendar year 1886 and thereafter. Under the existing law the first bracket rate is % of l per cent the first $1000O ranging upward to 45 per cent upon net gifts in excess of $l0000O00
 INDIVIDUAL INCOME SURTAxES - Increases the surtaxes individual incomes, beginning with surtax of 31 per cent in the bracket for net in- comes between s5oOoO and s56,00O, graduating up ward through the brackets to 73 per cent net incomes between $l000000 and S2000000 "A per cents on S2,000000 to $500O000 and 75 per cent on over S5000000 The new individual surtaxes to become effective for the first taxable year ending after December 31, 1885. Under existing law the individual income surtaxes begin with tax of 30 nar rent n cket for hatm and s56,000 and range upward to 59 per cent in- come in excess of $1,O00,O00.
 GRADUATED INCOME TAX ON CORPORA lTIONS-Imposes a graduated income tax on corporations to be levied follows: 129 per cent on net corporation income up to S2000, 13 per cent lon s2000 to S15,000, IA per cent $15000 to $4O 900 and Is per cent on net corporation income in excess of S40000 The tax is to become effective for the first taxable year ending after December 31, 1885. Under existing law the corporation income tax is flat rate of 13A per cent and there is no graduation of the rate
 CAPITAL STOCK TAX Increases the capital stock tax, levied under existing law at the rate of lS1 per 1000 the declared value of corporation stock, to a new rate of $l.40 per $1,000. new declaration of value also allowed with respect to the capital stock tax. The new tax takes effect beginning with the fiscal year ending June 30 1886.
 EXCESS PROFITS TAx-Levies a graduated tax lon excess profits of corporations as follows per cent on profits exceeding 10 per cent and not IS per cent, and 12 per cent profits exceeding 15 per cent of the declared value of corporation stock The new excess profits tax takes effect with the first income taxable year that ends after June 30, l936 Under existing law there is flat rate of l5 per cent on porfits exceeding 121a per cent.
 INTERCORPORATE DIVIDENDS TAX = Under existing law intercorporate dividends of domestic corporations deducted entirely, from gross in come in computing net income subject to tax. Under the new Revenue Act 90 per cent of such dividends are deductble, leaving 10 per cent taxable at the new graduated corporation tax rate. This provision takes effect the first taxable year beginning after December 31, 1885.
 i PERSONAL HOLDING COMPANY TAX In- creases the rates of tax undivided profits of per sonal holding companies to make them conform tc the higher surtaxes. Existing law provided for 8 surtax on undistrbuted adjusted net income of per Sonal holding companies at the rate of 80 per cent | of the amount of such income not in excess oi $100000 and 40 per cent incomes in excess oi $lOOO0. Under the Revenue Act of 1885 the taz is to be 20 per cent such income not over 5000 plus 30 per cent of the amount thereof oyer $200t and not over $1000oo plus 40 per cent of the amount thereof $l00,0O0 and not over $5O000O plus 50 per cent on the amount thereof over $500- 900 and not over $l.000000 plus 60 per cent of tho amount thereof $l 100000 This provision take effect the first taxable year beginning after De cember 31, 1885
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