The Waterbury Democrat., 1941-09-18

earned income credit on the norma tax, this means that income taXe. normal and surtax together-start at 10 per cent instead of the present 4 per cent.
 After the first $2,0OO of taxable income the surtax rate jumps to per cent, and by $2,000 bracket. thereafter 1t increases progres. sively to 13, IT, q, 25, 29, 32, 35, 3t and Al per cent. After $22000 O. taxable income the rate goes up ii bigger jumps to IT per cent or income in excess of $5,00o,000.
 There will be no special 10 pel cent special defense tax to calcu, late next year. It Is integrated intt the surtaxes and made permanent
 The present 10 per cent credi for earned income is continued ir computation of the normal tax. Bu the surtaxes begin with the frs dollar of taxable income, withou any such credit
 Next year, for the first time. tax. payers whose incomes do not tota more than $3,000 can allow the government to compute their taS for them. Charts will be posted showing what the average tax is fol each $25 bracket between $750 ano I $3000. Tn this chart deductions fo, contributions, etc, are arbitrarily averaged at 10 per cent of income A taxpayer may fill out check fo, the tax listed, answer four simple questions, swear to the return and file 1t.
 Corporation Income and Excess
 Profits Taxes
 Corporations whose net earnings total more than 5000 a year will continue to pay a 24 per cent nor- mai tax. Those with earnings up to $25,0o0 will pay as, follows: On the first $5,o00 IS per cent: on the next $l5,000, IT per cent: on the remainder, l9 per cent. Here, too, the present 10 per cent special defense tax has been integrated and made permanent-in this case With the normal tax.
 Corporations will pay new sur tax: 6 per cent on income up to $25,000; 2 per cent on the rest.
 Corporations will continue to pay excessive profits taxes, which do not apply to individuals. The rates have been increased by 10 per cent in each excess profits bracket.
 Corporations have been required to file, every three years, a declafa- ton of the value of their capital stock, on which the tax rate has been $1,l0 per $l.ooo of valuation. This tax is raised to SIPS.
 Yield of all the corporation tax changes. $l,4o4 ,000, ,o00.
 Estate and Gift Taxes
 The bill integrates the 10 per cent defense tax into the estate and gift structure and increases the rates.
 A $40,444 exemption is allowed on estates, after which the tax be- gins at 3 per cent on the first $S,- 900 of taxable estate. and increas- es to a maximum of 70 per cent on that portion of estates over $i0,000,- coo. Gift tax rates are 75 per cent of estate tax rates. Yield, $l57 ,ooo,- 900.
 Excise and Miscellaneous Taxes
 Many existing taxes are in- creased, and new ones added. They become effective Oct. except where otherwise indicated. Most are payable by manufacturers, but the cost is passed on to the con. surner.
 Automobiles-The 3 i-2 per cent excise tax Is increased to 2 per cent. This tax is paid by the man. ufacturer and applies only to new cars. Yield, $72,2o0,0o0.
 A new $5 annual use" tax or federal license fee applies to all automobiles. Also a use tax on boats-$5 to $2o0-a-year Is levied.
 Auto and boat use taxes effective Feb, 1, l942; yield $l60, 100000.
 Trucks-Excise doubled to 5 per cent; truck and bus trailers, form erly not taxed, are taxed at 5 per cent. Yield, $l6,l00,000.
 Radios, Establishing law taxes radio and photograph parts and musical instruments. The new bill includes tax on all new instruments and increases the rate from 1-2 per cent to 10 per cent. Yield, $l7,- 5O0000.
 Refrigerators and air condition ers-increased from 1-2 to 10 per cent. Yield, $16,600,O00.
 Playing cards, increased from Il to 13 cents a pack. Yield, $1,00O,O00
 Safe deposit boxes, increased from Il to 20 per cent of rental charge. Yield, $1,70O,000.
 Distilled spirits, increased from s to $4 a gallon; brandy from $2.75 to $4; yield, $123 900, 900.
 Wines and Liquors: Still wines, tax increased from 2 to 15 cents per gallons: sparkling wines, increased from to cents per half-pint. Artifically carbonated wines, in- creased from l 1-2 to 1-2 cents per half pint. Liquors, cordials, in- creased from 1 1-2 cents per half pint to l-2 cents. Yield, $l0,400,- GOO.
 Tires, increased from 9 1-2 to cents a pound. Tubes, from 4 1-2 cents a pound to g cents. Yield, $4460O, 900.
 Theaters, etc.--One cent for each 10 cents of admission price or frac- ton thereof. Yield. s62.400OOO.
 Cabarets and Roof Gardens
 Levy of s per cent of the bill replaces one of 20 per cent on that portion attributable to the admig- sion charge. Yield. $2OOO.O0O.
 Club Dues Existing law taxes dues exceeding s25 a year. now re- duced to si0. Tax remains q per cent. Yield. &2,S00O00.
 Afatches-Fancy wooden matches now are taxed 5 Ia cents per thou sand. The bill adds all other matches at 2 cents. Yield, es.2O0,- 900.
 Telephone seFvlce-A new c per cent tax on every monthly phone rental bill. Yield. eS2. 800. .o0O.