Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1913-04-09
Will LIFT
A BURDEN
FROM POOR
And PLACE ON THE Rich
New Income Tax is a Vital
Law

income tav section which would re-
quire every resident of the Unite
States who earns $4,000 to pay tax,
but it would demand that the individ-
ual who earned $4,1O0 for example, to
pay into the government treasury an
annual tax of l per cent on 500, or 81
on every hundred.
The bill also would provide higher
rates of taxation for persons with
larger incomes, adding sur-taX of :
per cent additional on earnings in ex-
cess of $4,000; 2 per cent additional
on earnings in excess of $4,000, and
per cent. additional on earnings in eX-
cess of 100000.
Under the sur-tax provisions, the
man who earns only $4,000 would pay
to the government each year at the rate
o. l per cent. on $4,000 $4,000 ex-
empt, or $3.50. If he earns $4,000,
he would pay 1 per cent on $4,000 still
and 2 per cent. on $4,000, this MAX
ing his annual tax $3.50.
The person with a $4,000 income
would pay 1 per cent on $4,000 and 2
per cent on $4,000 total tax of
$3.50.
The man with an income of 100000
would be required to pay l per cent.
on $4,000, 2 per cent on $4,000 and
) per cent. on $4,000, which would to-
tai $500, bringing his total income tax
to $2,26O.
The individual with a net income o:
a million would pay $2,260 on his first
100000 and in addition he would pay
4 per cent on 100000, which wouli
bring his total tax to $38,260.
For Corporations, Too.
The bill also would re-enact the pre-
sent corporation law, imposing a l.
per cent. tax on the earnings of corpo-
rations, stock companies, insurance
companies and the like, but it would
exempt partnerships. This is fiat
rate, there being no graduated scale
as the earnings increase. The few
changes from the present corporation
act concern chilly the time of makius
returns and the time for collection.
The bill also includes under it's pro-
Visions the property and earnings ia
this country of persons who, Ii 80
abroad. 1t is estimated by members of
the committee that approximately
$100,000,00 in revenue may be derived
from this new tax including the cor
loration tox, that amount making up
for Il e deficiency in revenues to be de.
rived from imports by virtue of the
greatly reduced tariff rates and tie
TRANSFER to the free list of articles that
are classed as necessaries of living.
Incomes of taxable persons shall in
clude gains, profits and incomes deriv-
ed from salaries, wages or compensa-
ton for personal service Of whatever
krd and in whatever form paid, or
from professions, vocations, business,
trade, commerce or sales, or dealings
in property; also from interest, rent,
dividends, securities, including income
from property, income from but not
the value of property acquired by be-
guest, devise or descent and also pro-
cceds of life insurance policies paid
on death of persons insured.
How to Trim Taxable Income.
The bill allows as deductions in COM
putting net income all necessary ex-
penses actually incurred in carrying
on any business, not including personal
Iivig, or family expenses, interest &C
crued and payable by the wear by Il
taxable person on Indebtedness; all
national, state, county, school and mu-
nicipal taxes, not including local benc-
fit taxes; losses incurred in trades OF
from fires, storms or shipwreck,a mo-
compensated by insurance or other
wise; debts actually ascertained q.
worthless and charged off; also reas