The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1913-04-16
THE Income TAXI
BILL TO PROVIDE FOR IT BEFORE
THE HOUSE
Will Raise LARGE sum
The Act Provides for Graduated
Tax on ALI Incomes Over and
Above Four Thousand Dollars Per
Annum Derived From Salaries or
Money That is Invested.


Included in the Democratic tariff
revision bill introduced in congress
Monday is an income tax section,
which would require every resident
of the United States who earns more
than $4,000 year to pay a tax of
one per cent. On his earnings in ex-
cess of the exemption. This would
not require the man who earns S4,-
900 to pay tax, but it would de-
mand that the individual who earned
s4,100, for example, pay into the
government treasury an annual tax
of one per cent on 81, or 81.
The bill also would provide higher
rates of taxation for persons with
larger incomes, adding a sur-tax of
one per cent. additional on earnings
in excess of $4,000, two per cent.
additianal on earnings in excess OF
$4,000, and five per cent. additional
on earnings in excess of 100000.
Under the sur-tax provisions the
man who earns only $4,000 would
pay to the government each year at
the rate of one per cent. on $4,000
(s4,0O0 exempt), or $3.50. If he
earns $4,000 he would pay one per
cent. of $4,000 still and TWO per
cent. on $4,000, thus making his
annual tax $3.50. The person with
a $4,000 income would pay one per
cent. on $4,000, and two per cent.
on s30,O00-a total tax of $3.50.
The man with an income of $780,
600 would be required to pay one
per cent. on $4,000, two per cent.
on $4,000, and three per cent. on
s5O,0o0, which would be $1,000,
bringing his total income tax to s2'-
200. The individual with a net in
come of s1,OO0,0O0 would pay S2,-
$50 on his first 100000, and in addi-
ton he would pay four per cent. on
ssO0,0O0, which would bring his
total tax to s3S,2S0.
The bill also would re-enact the
present corporation tax law, lmpos-
ing one per cent. tax on the earn
ings of corporations, stock compa-
MES; insurance companies and the
like, but it would exempt partner
ships. This is fat. rate, there be-
ing no graduated scale as the earn
ings increase. The few changes from
the present corporation tax act con-
Germ chiefly the time of making re-
turns and the time for collection.
The bill also includes under its pro-
visions the property and earnings
in this country or persons who live
abroad.
II is estimated by members of the
ways and means committee that ap-
rroximately s1O0,OO0,000 in revenue
may be derived from this new tax
including the corporation tax, that
amount making up for the deficit IN
revenues to be derived from imports
by virtue of the greatly reduced tarlh
rates and the transfer to the free list
of articles that are classed as neces-
saries Of living.
Incomes of taxable persons snail
include gains, profits and incomes de-
rived from salaries, wages or COM
pensation for personal service or
compensation for personal service OF
whatever kind and in whatever form
paid, from professions, Vocatlons'
businesses, trade commerce or sales'
or dealings in property, also from IN
terest. rent, dividends, securities, IN
Guiding income from property, income
from but not the value Of preprty ac-
ouired by bequest, and also proceeds
of life insurance policies paid upon
death of persons insured.
The bill allows as deductions IN
computing net incomes all necessary
expenses actually incurred in carry
ing on any business, not including per
sonal living or family expenses; IN
terest accrued and payable within
the year by a taxable person or IN
aebteduess; all national, State, coun-
ty. school and municipal taxes, not
including local benefit taxes; losses
incurred in trades or from hres'
storms or shipwrecks not compensat-
ed by insurance or otherwise; debts,
actually ascertained as worthless ana
charged off; also reasonable allow
ance for wear and tear on property
hut no deduction will be allowed 1or
expense of restoration or improve
ment made to increase property
value.