94 THE FISCAL PROBLEM IN MISSOURI

between 80% of the amount imposed by the Federal Government
 and the total tax levied according to the Missouri rate
schedule is levied by the State of Missouri. The principal
effect of this provision is to increase the taxes levied by the
state on shares passing to the husband or the wife and children
 in the case of very large estates.
Missouri has also enacted a law! providing for inheritance
tax reciprocity in the case of personal property other than
tangible personal property having a situs in the state, when
the transferer at the time of death was a resident of a state
or a foreign country that had a similar reciprocity statute
on its books or did not impose a transfer tax or death tax
of any character on such property of residents of Missouri.
The Income Tax
The Missouri income tax may be termed a general income
tax. The same rate of tax, 19, is levied on the incomes of
residents received from sources within and without the state,
the incomes of non-residents from sources within the state,
and the incomes of corporations, both foreign and domestic,
from sources within the state. The 19} rate has been in
effect since 1921. Prior to 1921 the rate was 1249}, for two
years, and from 1917 to 1919 the rate of 159, as fixed in the
original law? was in effect.
The statutes® provide that the incomes of fifteen distinct
classes of organizations, associations, or corporations shall
not be taxed. Included in the exempt list are labor, horticultural,
 and agricultural organizations; co-operative marketing
 associations; mutual savings banks not having a
capital stock represented by shares; non-profit fraternal
orders providing benefit payments to members; domestic
building and loan associations and non-profit co-operative
banks operated without capital stock; cemetery companies
operated exclusively for the benefit of members and without
profit; non-profit religious, charitable, scientific, or educational
 organizations; chambers of commerce, business
leagues, and the like; civic leagues, and other social welfare
1 Session Laws, 1929, pp. 102 ff.
% Missouri levied an income tax during the Civil War period. “Original law,” as
here used, refers to the modern period, that is, beginning with the law of 1917.
1 Session laws, 1927. p. 476.