The copper era and Morenci leader., 1913-06-06

revenues to be derived from imports
by virtue OF the greatly reduced tariff
and the transfer to the free list of
articles that are classed as necessa-
ries OF living
Incomes of taxable persons shall
include gains, profits and income de-
rived from salaries, wages OF com
pensation for personal service Of
whatever kind and in whatever form
paid, or from professions, vocations,
business, trade. commerce or sales or
dealings In property, also from inter
est, rent dividends, securities, includ-
ing income from property. income
from but not the value of property
acquired By bequest, devise or de-
scent, and also proceeds of life insur-
ance policies paid upon death of per
sons insured.
Provision Made for Deductions
The bill allows as deductions In
computing net income all necessary
expenses actually incurred in carrying
on any business, not including per-
sonal living or family expenses, inter
est accrued and payable within the
year by a taxable person on indebted
ness; all national, state. county,
school and municipal taxes, not in
Guiding local benefit taxes; losses in
CURED in trade or from fires, storms
or shfpwreck not compensated by In
surance or otherwise; debts actually
ascertained as worthless and charged
off; also reasonable allowance for
wear and tear on property; but no de-
ductton will be allowed for expense
n I'm 10
to increase property value.
1t excerpts also, in computing net in
come. amounts received as dividends
upon the stock of any corporation,
joint stock company. association or
insurance company which is taxable
upon its net income under the cor
poration tax provision of the bill.
The bill excludes the compensation
of the president of the United States
during his term, that of judges of the
Supreme and inferior courts OF the
United States, and compensation Of.
all officers and employees of state or
any political subdivision thereof.
System Of Collection Framed.
1t establishes system of collection
of the tax at its source, requiring all
panies, corporations. joint stock com
panies, associations or insurance COM
panies, and all trustees, executors. adj
receivers. ETC.. and ON
GERS and employees OF the United
States having the control or disposal
OF salaries. wages, interest and other
profits and income of another person
to withhold and pay to the collector
Of internal revenue the amount Of in
come tax due from snch person. All
such persons or firms are made per
sonalIy liable for such tax.
Persons or corporations liable to,
make return on incomes who fail to
do so at . specified time. are made
liable to \ fne not exceeding $500 and
the penalty for false or fraudulent re-
turns Is fixed at $1,000 or imprison-
ment not exceeding one year. or both.
I'm formulating this additional Inn
post" said Chairman Underwood In
his report, "the attempt has been
made to provide not only = SOURCE OF
revenue. but also q means Of redress
ing In some measure the unequal tax
burdens which result from the Drac-'
ice Of basing the federal income en-
.lrsly upon Customs and Internal revS-
nue. duties. This IL a system of tax
.tion which inevitably throws the bur
len of supporting the government up
IN the shoulders of the consumers.
t corrsspondingiy exempts the men
II larger income. whose consumption
II the ordinary necessaries of life 10
ubject to tariff taxation In q far less
degree than is that of small
,reater proportion of their resources
or the ordinary necessaries of life"
Underwood Defends Plan.
Speaking OF the principle of taxa
lon laid down and the graduated sys-
en- proposed. Mr.. Underwood do
Jared:
The progressive principle already
as been sustained by the Supreme
curt of the United States in the in
eritance tax cases and there can be
o doubt that the same principle APP
lies to the income tax included in
MS bill and will be fully upheld
hould it ever be called into question.
wing to defects in personal property
axation, the larger incomes in the
nited States. have for many years
cen able to escape with less than
leir share of the general burden of
lxation, and this inequity will be, 1t
believed. in part overcome by the
Ian proposed"
The bill provides that all taxable
ersons shall be notified of the amount
IT which they are liable under the
w ON or before the 1st day of June
each year and assessments must bs
lid on or before June 30. For delay
making payments and ten days aft
notice, there shall be added the
I'M Of 5 per cent. of the amount of
Z unpaid and interest at the rate of
per cent a month from the time the
Z fell due.