Evening star., 1941-10-01
Heaviest j. ). Taxes
Ever Imposed Taking
First Cash Today
Levies Double Those of
World War Era to Ruise
$4,000. .000, 900 q Yeor
By the Associated Press.

By the Associated Press.
The heaviest taxes in American
history-double those of the World
War era-took their first big hand
ful Of cash from the public's pocket
book today and 1t was only the be-
ginning.
The new excite Ievies which be-
came effective at midnight gave
consumers their initial-if incom-
plete-idea of what the recently
passed defense revenue tax bill is
going to mean in dollars and cents.
Although the Treasury Depart
ment is counting on the excise taxes
for the pretty penny of $4,000 900 a
day, they represent only a small
part of the whole revenue program
which is expected to raise about
$4,000 100000 a year.
Income Exemptions Lower.
Yet to come is the day of reckon
Ing on the new income and excess
profits taxes, already in effect and
applying to l941 returns. These
levies are of the delayed action
variety, with the payoff to Uncle
Sam deferred until next March Is.
The new order of taxes contrasted
with the supposedly burdensome
levies of the World War era. which
yielded only s6,694, 900 900 in their
banner year. However, the Nation
now has about 100000 more in
habltants to share the burden.
In 1918 income tax exemptions
were $4,000 for a family head and
$1,000 for single person. The new
figures are s1,500 and $3.50. How
ever, in 1918 dependents were 5000
credits and now are S400 apiece.
The tax rates in both cases range
up to II per cent, but the new law
sets heavier levies in the lower and
medium brackets than the 1918 stat
ute.
The corporation income tax in
1918 was 6 per cent and now is q
to 81 per cent.
Profits Taxes Higher.
The excess profits tax on corpo-
rations has been raised from a
range of s to so per cent to a
bracket Of IS to so per cent.
Estates were taxed then at 2 to 25
per cent and now are to - per
cent.
Liquor that was nicked 1920 a
gallon when the country sang over
There" now contributes 81. The beer
tax has increased from So to s6 a
barrel.
Changing times have altered many
OF the methods and sources of taxa
ton. Now important revenue comes
from radios. mechanical refrigera-
tors. electrical appliances. These
things either didn't exist or were not
dated consumer luxuries in those
days.
On the other hand. the new tax
act doesn't have taxes. as they did
in 1918, on soft drinks. player
pianos. silk shirts and other ex-
pensive clothing, candy, patent med
icine and riding academies.
Although the theater admission
tax rate remains the same under
the 1940 law. the new act removed
the 1910 exemption for admissions
under 81 cents. In addition to SUBJ
jecting admissions to tax regardless
of price. the new law removed ex-
emptions previously provided for
county and State fairs, charity
bazaars. etc. The only exemption
provided was admissions less than
10 cents for children under IL.
In addition to the manufacturers
excises on liquor. wines, tires, tubes
and matches. the new act provides
a floor stock tax in general equiva-
lent to the increased manufacture
ers excises on those commodities
to cover stocks on hand at retail
and wholesale outlets. The floor
stock levy was imposed to prevent
such wholesalers and retailers from
stocking up in advance of enact
ment of the new law, to escape the
higher rates.