FROM THE

WAR REVENUE ACT OF 1917

1. Individual Income Tax

2. Corporation Income Tax

3. Tax on Excess Profits

4. Federal Estate Taxes

INCLUDING

DIGEST AND TEXT

JAN 22 1918

FOREWORD

Through the joint agency of the individual income
tax, the corporation income tax and the tax on the
excess profits of individuals and corporations, a large
part of the war cost will be paid outright from the
current earnings of the American people.

The War Revenue Act of October 3, 1917, levies many
taxes in other forms, such as stamp taxes, additional
taxes on liquor and tobacco, and taxes on amusements
and the manufacture of certain articles, but in most cases
such taxes affect particular industrial groups or interests
only and do not fall directly upon the general public.

On the other hand, income and excess profits taxes
apply to practically all individuals and businesses, of
every class and kind, and must be understood by the
whole public. The law imposes direct obligations and
affirmative duties, especially in connection with the in-
come taxes, upon many who have not heretofore been
concerned with the operation of the tax but must now
inform themselves if they are to escape the severe pen-
alties to which they are liable in case of failure or
neglect.

The digest published herewith is arranged in simple
form to show in each case how the tax is assessed and
levied, and when it is due, and will supply the informa-
tion necessary to understand the effect of the taxes
described herein.

For further information on the subject of the in-
come, excess profits and estate taxes, and the other taxes
levied by the Act of October 3, 1917, persons interested
are invited to call upon the

TRUST DEPARTMENT OF THE SAVINGS UNION
BANK AND TRUST COMPANY,

which will seek to facilitate in every way possible an
understanding of the law, and of the new regulations
of the Treasury Department, which are expected to
appear within a short time.

October 15, 1917.

Copies of this pamphlet may be obtained upon appli-
cation at the Savings Union Bank and Trust Company,
Grant Avenue and O'Farrell Street, San Francisco.

Copyright, 1917,

by

Savings Union Bank and Trust Company,

San Francisco, California.

Digest of Income and Other Taxes

As Revised and Amended by the

WAR REVENUE ACT OF 1917

The War Revenue Act approved October 3, 1917, effects many changes in federal tax laws, including important amendments to existing laws.

The following is a digest of the laws, as revised and amended, relating to the following taxes:

1. The Individual Income Tax;

2. The Corporation Income Tax;

3. The Tax on Excess Profits of Both Individuals

and Corporations; and

4. The Federal Estate Taxes.

The digest in each case will afford a comprehensive view of the nature and effect of the said taxes, but inasmuch as there are numerous special provisions and exceptions, the texts of the acts should be read carefully, together with the regulations and rulings of the Treasury Department, which will shortly appear. (Texts are published herein, beginning page 25.)

I.

THE INDIVIDUAL INCOME TAX.

It should be understood that the War Revenue Act of 1917 does not repeal the Income Tax Act of September 8, 1916. The old tax remains in force (with certain important amendments relating to assessment and administration), and to it is added a new War Income Tax having a far wider application. The main effects of the new Act, therefore, are first, to increase the rates on incomes already subject to tax, and second, to assess a tax upon incomes not heretofore taxable.

Although the two taxes-the old and the new-are technically distinct from each other, the new Act provides that the War Income Tax shall be computed, levied, assessed, collected and paid upon the same basis and in the same manner as the Pre-War Income Tax.