The law, which provides for the aboved mentioned exemptions, in addition, has other items of inter~ eat in general. Although the full text is mot available, certain reductions were incorporated before the final committee reading. They believed to be accurate also. merce and the allied chambers, 0 both corists, who were interested in Asiatic shipping.
The general point of protest, although not immediately applicable, was that commercial men had. to pay an income tax to both foreign home governments, while in China it was pointed out that other rationals were free of all such taxes. Congress, it is believed denied the first principle, og _deductions were permitted on such outside taxes. The other was unanswerable, however, and is thought to have been the point which parently has gained the day.
The income tax rate was reduced and the personal exemptions were raised from $1,000 to $1,500 in ease of a single person and from $2,600 to $3,500 in ense of the head of 4 family, The rate for normal taxes was reduced from 2 to 15 per cent. on the first $4,000 of taxable income, from 4 to 3 per cent. on the next $4,000 and from 6 to 5 per cent. on' all over $8,000, The first $5,000 of income is automatically " considered earned, and $15,000 additional may proved us such. The former limit way $10,000 for earned income. Farned income is also subject to a 25 per cent. deduction. The bill provides for a new schedule of surtax rates, starting with T por cent. on incomes of $10,000 to $14,000 and running up to 20 per cent. on incomes above $100,000, Under the former Inw the maximum rate was 40 per cent. on incomes: above $500,000, The revenue bill was introduced in the House of Representatives on December 7, and after much deivate went to the Senat. struck out the post the income broad, as was in the "North China Daily News." Since that time pressure was evidently brought to bear and it would sem that the proponents have been successful.
The new law was so framed, however, that it does not exempt from taxation those who receive all or part of their income from American sources, nor does it exempt income for which personal service not actually rendered, such as me terest on securities. Therefor the measure falls short of that asked by Americans abroad because persons living abroad but. receiving income from American sources will not be exempt from taxation on such income:
Text read from the printed page and cleaned; old type leaves the occasional error.