WAR REVENUE ACT Approved October 3, 1917 (PUBLIC-No. 50-65TH CONGRESS) (H. R. 4280) An Act to provide revenue to defray war expenses, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I.—WAR INCOME Tax. SECTION 1. That in addition to the normal War income tax tax imposed by subdivision (a) of section one of the Act entitled "An Act to increase the revenue, and for other purposes," approved September eighth, nineteen hundred and sixteen, there shall be levied, assessed, collected, and paid a like normal 1. Supplementary tax of two per centum upon the income of every normal tax of 2% individual, a citizen or resident of the United on individuals States, received in the calendar year nineteen hundred and seventeen and every calendar year there after. surtax on indi SEC. 2. That in addition to the additional tax 2. Supplementary imposed by subdivision (b) of section one of such viduals Act of September eighth, nineteen hundred and sixteen, there shall be levied, assessed, collected, and paid a like additional tax upon the income of every individual received in the calendar year nineteen hundred and seventeen and every calendar year thereafter, as follows: $5,000 to $7,500 to $10,000 to $12,500 to $15,000 to $20,000 to $40,000 to $60,000 to $80,000 to $100,000 to $150,000 to One per centum per annum upon the amount by which the total net income exceeds $5,000 and does not exceed $7,500; Two per centum per annum upon the amount by which the total net income exceeds $7,500 and does not exceed $10,000; Three per centum per annum upon the amount by which the total net income exceeds $10,000 and does not exceed $12,500; Four per centum per annum upon the amount by which the total net income exceeds $12,500 and does not exceed $15,000; Five per centum per annum upon the amount by which the total net income exceeds $15,000 and does not exceed $20,000; Seven per centum per annum upon the amount by which the total net income exceeds $20,000 and does not exceed $40,000; Ten per centum per annum upon the amount by which the total net income exceeds $40,000 and does not exceed $60,000; Fourteen per centum per annum upon the amount by which the total net income exceeds $60,000 and does not exceed $80,000; Eighteen per centum per annum upon the amount by which the total net income exceeds $80,000 and does not exceed $100,000; Twenty-two per centum per annum upon the amount by which the total net income exceeds $100,000 and does not exceed $150,000; Twenty-five per centum per annum upon the amount by which the total net income exceeds $150,000 and does not exceed $200,000; $250,000-30% Thirty per centum per annum upon the $200,000 to amount by which the total net income exceeds $200,000 and does not exceed $250,000; $250,000 to Thirty-four per centum per annum upon the $300,000-34% amount by which the total net income exceeds $250,000 and does not exceed $300,000; $300,000 to Thirty-seven per centum per annum upon the $500,000-37% amount by which the total net income exceeds $300,000 and does not exceed $500,000; $500,000 to Forty per centum per annum upon the amount $750,000-40% by which the total net income exceeds $500,000 and does not exceed $750,000; $1,000,000 Forty-five per centum per annum upon the $750,000 to amount by which the total net income exceeds 45% $750,000 and does not exceed $1,000,000; 50% Fifty per centum per annum upon the amount $1,000,000 upby which the total net income exceeds $1,000,000. of tax on under act of exemptions SEC. 3. That the taxes imposed by sections 3. Computation one and two of this Act shall be computed, levied, individuals assessed, collected, and paid upon the same basis Basis same as and in the same manner as the similar taxes im- Sept. 8, 1916 posed by section one of such Act of September eighth, nineteen hundred and sixteen, except that in the case of the tax imposed by section one of this Act (a) the exemptions of $3,000 and $4,000 Personal provided in section seven of such Act of September eighth, nineteen hundred and sixteen, as amended by this Act, shall be, respectively, $1,000 and $2,000, and (b) the returns required under Returns subdivisions (b) and (c) of section eight of such Act, as amended by this Act, shall be required in the case of net incomes of $1,000 or over, in the case Unmarried of unmarried persons, and $2,000 or over in the case Married person of married persons, instead of $3,000 or over, as therein provided, and (c) the provisions of subdivision (c) of section nine of such Act, as person $1,000 $2,000 Withholding on obligations containing a "tax free" clause Does not apply to supplementary war income tax of 2% until Jan. 1, 1918 Only one 2% tax shall be withheld at source 4. Supplementary war income tax on corporations. Rate 4% Basis same ав under Act of Sept. 8, 1916 amended by this Act, requiring the normal tax of individuals on income derived from interest to be deducted and withheld at the source of the income shall not apply to the new two per centum normal tax prescribed in section one of this Act until on and after January first, nineteen hundred and eighteen, and thereafter only one two per centum normal tax shall be deducted and withheld at the source under the provisions of such subdivision (c), and any further normal tax for which the recipient of such income is liable under this Act or such Act of September eighth, nineteen hundred and sixteen, as amended by this Act, shall be paid by such recipient. SEC. 4. That in addition to the tax imposed by subdivision (a) of section ten of such Act of September eighth, nineteen hundred and sixteen, as amended by this Act, there shall be levied, assessed, collected, and paid a like tax of four per centum upon the income received in the calendar year nineteen hundred and seventeen and every calendar year thereafter, by every corporation, joint-stock company or association, or insurance company, subject to the tax imposed by that subdivision of that section, except that if it has fixed its own fiscal year, the tax imposed by this section for the fiscal year ending during the calendar year nineteen hundred and seventeen shall be levied, assessed, collected, and paid only on that proportion of its income for such fiscal year which the period between January first, nineteen hundred and seventeen, and the end of such fiscal year bears to the whole of such fiscal year. The tax imposed by this section shall be computed, levied, assessed, collected, and paid upon the same incomes and in the same manner as the tax imposed by subdivision (a) of section ten of such Act of September eighth, nineteen hundred and |