South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-10-20


year, forget il. $500
If your income is E----=====.
ellison Gardner.
| above these figures you will have TO
pay l per cent on the margin be-
tween these figures and the top limit
OF your income. In addition, If your
net income exceeds $4,000 you pay
l per cent more up TO $4,000; on
$4,000 2 per cent more up TO $751;
600; on $4,000, 3 per cent more up
10 SlOO, COO; on 100000, per cent
more TO $25O,000: on $250.GOO. per
cent more 10 100000. and on all
over 100000, 6 per cent more.
Don't Wait for Blank.
Explanations Of the law are being
printed by the treasury department
and will soon be ready for distribu-
ton throughout the country They
can be had probably at every postof-
| flee. They will be sent to some peo-
pie by officials. but the fact that you
do not get blank form or an ex-
PLANTATION does not relieve you from
the law. You must get a blank form
and nil IL out.
incidentally, there are penalties. If
you delay too lOnN the tax is doubled
and If you try TO swear it off, you
run the chance Of a $4,000 fine or a
year in jail, or both!
OF course, your first returns are
| FOR proportionate part of the year.
and the figure for you to keep in
mind is not $4,000 or $4,000, but 81
500 and $3,3S3.33. That is because
you are to pay on your income for
that part of the year between March
1 and Dec. 80, 1913
Most people will not pay their in
come taxes themselves but will have
n
they get ii. The man on salary will
nave his tax deducted from his pay
and forwarded to the government by
MS boss. The man getting rents in
terms above $4,000 and $4,000 a year
Will have Ii held out by the man who
pays the rent. The man living on in
terest Will have the income tax held
out by the person, firm or corporation
whose bonds or other form of security
ne holds. A person living on divi-
dends or the profits Of a corporation
will have the income tax collected as
under the present law by the corpora
ton tax. In other words. there is no
new income tax on profits of corpora
lions. These are supposed TO have
been reached by the law already on
the books. The person living on the
income from government bonds. or
state, county or municipal bonds gets
off. Income from these sources is ex-
empt under the law, the purpose being
10 encourage investment in such pub
lie securities
There are lot Of other people who
have to make their own returns. Mer-
chants. farmers. professional men,
tradesmen, authors, inventors, etc,
belong TO a class whose incomes are
uncertain as to amount and times Of
receipt These persons are required
each to make personal return on his
income when il exceeds the specified
amount.
Must Claim Exemption.
For the benefit of the large class of
small investors whose incomes are
not large enough to be taxed, it should
be explained that they will be required
TO disclose themselves as the holders
OF certain bonds and TO claim ex-
! emption-as for example, a widow
with a $4,000 estate invested In the
bonds of an indsutrial corporation.
| These are merely numbered bonds 10
which are attached coupons for the
per cent dividends payable quarter
~. u der the law the corporation
would withhold the l per cent on all
these coupons and IL would be neces-
sary for the said widow 10 fill out a
form which can be secured from the
treasury department. claiming her
exemption, because the amount of her
total income falls below the legal
minimum. This would be forwarded
by her bank to the treasury and she
| will receive a check rebating her
share of the taxes.
Speaking Of the collection at the
source. Rep. Cordell Hull. author OF
the new law, says: That part of the
new law requiring collection at, the
source takes effect Nov. l OF this
year. After this date every person.
/ firm. or corporation through whose
| hands passes fixed annual or periodi-
cal taxable income of the individual
! during the months OF November and
December must withhold an amount
| equivalent to the tax due or TO become
due upon the amount Of such fixed
/ annual or periodical income as has
| thus passed to the individual taxpayer
since March /, 1913. in excess of
| $4,000. To illustrate: A man paying
| $1,000 a month rent would withhold
from the first rental payment made
after Nov l the tax due upon each
payment made from March 1. unless
the landlord should file notice of
! claim of exemption, in which event
the amount upon which the tax
should be withheld would be reduced
This rule would apply also 10 fixed
| annual salaries, interest, and so on"