The river press. [volume] (Fort Benton, Mont.) 1880-current, 1913-10-15
OF THE
INC M Tx Law
EirIH,..~1 tye'T~'!cH Is Placed
H1.000 ffCFsE fn:: Ekssu lES
re m r"- ',-.-.'.,
~ -..ts

mum Of 6 Per Cent IL Reached on
the Excess Above $5oo,ooo-PenaItiss
For Failing to Make Reports.
The income tax feature of the new
tariff law, made possible by the adOp-
ton Of an amendment to the federal
constitution, marks a new feature In
tariff legislation. 1t is expected to
yield an annual revenue exceeding
$1OO,OOO,OOO. which makes possible the
reduction of tariff duties.
Under the terms of the new law q
tax of / per cent will be levied on all
incomes in exces Of $4,000 with GER
tain exemptions. The bill provides
that there shall be IAN additional tax
Of l per ent per annum upon the
amount by which the total net income
exceeds $4,000 and does not exceed
$4,000, and 2 per cent per annum
upon the amount by which the total
net income exceeds $4,000 and does
not exceed $4,000. 3 per cent per an
III upon the amount by which the
total net income exceeds $4,000 and
does not exceed 100000, 4 per cent
per II upon the amount by which
the total net income exceeds 100000
and does not exceed $25O,OOO, 5 per
cent per mum upon the amount by
which the total net income exceeds
$25O,OOO and does not exceed $5OO,O0O
and 6 per cent per annum upon the
amount by which the total net income
exceeds 100000"
lndividuals to Make Returns.
Every person subject to the income
tax must make a report of his income
to the collector Of internal revenue in
the district in which he lives or in
which his business IL carried On.
In defining what shall be considered
income for taxation. the bill says:
Subject only to such exemptions
and deductions as are hereinafter al
person shall include gains, profits and
income derived from salaries, wages
or compensation for personal service
| Of whatever kind and In whatever FORM
paid, or from professions, %vocations,
businesses. trade, commerce or sales or
dealings in property, whether real or
personal, growing out OF the ownership
or use Of or interest in real or personal
property; also from interest, rent, divi.
dends, securities or the transaction of
any lawful business carried on for gain
or profit or gains or profits and income
derived from any source whatever, in
Guiding the income from but not the
value of property acquired by gift, be-
quest, devise or descent. provided that
the proceeds of life insurance policies
paid upon the death of the person in
sured or payments made by OF credited
to the insured on life insurance, en-
dowment or annuity contracts upon
the return thereof to the insured at the
maturity Of the term mentioned in the
contract or upon surrender of the con-
tract shall not be included as income"
The provisions of the bill for exemp-
lions as finally agreed on are:
There shall be deducted from the
amount Of the net income of each of
said persons. ascertained as provided
herein, the sum of $1,000 plus $1,000
additional If the person making the re-
turn be a married nan with a wife,
living with him and being herself not
taxable under the income tax law, or
plus the sum of $1,000 additional If the
person making the return be a married
woman with a husband living with her
and being himself not taxable under
the income tax law, but in no event
shall this additional exemption Of ST.
600 be deducted by both a husband
and a Wife"
Foreign Residents to Be Taxed.
The bill contains provisions for thu
taxation of the incomes Of citizens re
siding in foreign countries on incomes
derived from property owned OF bust
ness carried on in the United States
The bill also provides:
"That If any person, corporation
joint stock company, association or in
surance company liable to make tn
return or pay the tax aforesaid shall
refuse or neglect to make a return a
the time or times hereinbefore specl
fed in each year. such person shall b.
. liable to a penalty of not less than 80
nor more than $1,000. Any person o
!. any officer Of any corporation requires
by law to make. render, sign or verif,
any return who makes any false O
!, fraudulent return or statement with ir
tent to defeat or evade the assessment
> required by this section to be mad
, shall be guilty of a misdemeanor an
> shall be fined not exceeding $4,000 o
be imprisoned not exceeding one yea
or both. at the discretion of the cour1
with the costs of prosecution"
The first tax is to be levied and col
lected on incomes from March l. 1911:
to Dec. 81, 1919. Thereafter the i,
come shall be computed for calenda
years ending with Dec. 81.
{ The bill also provides that the il
, come of states, territories or polite;
subdivisions shall not be taxed, an
, there shall be no tax levied on income