Abstract The Federal income tax chart for 1936 has been devised as an aid in visualizing the effect of the rates of income and excess-profits tax applicable to corporations for fiscal periods ending after November 20, 1936. A new declared value for capital stock and surplus is to be made as at June 30, 1936 and because the rates of excess-profits tax have been increased from 5 percent to 6 percent, the minimum amount at which such value should be declared warrants careful study. Each 1, 000 of declared value will be taxed at 1. 40, a failure to declare the necessary minimum means an excess-profits tax at 6 or 152 for each 11, 000 deficiency of declared value. The chart defines the various brackets in which the possible combinations of income and adjusted declared value will fall. In each bracket appears a formula from which the computation of the total tax may be made. Vertical lines represent adjusted declared values in thousands of dollars, the ratios of net income to adjusted declared values.
E. L. Kohler (Sun,) studied this question.