Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1913-04-16

ISVSuu0S. 10 Uo u6TxN0u 1IOu AWpOIte
by virtue OF the greatly reduced tarif
and the transfer to the free list o.
articles that are classed as necessa
RES OF living. Nh. s, 4. II, Z.
Incomes of taxable persons shall
include gains, profits and income de
rived from salaries, wages or com
spensation for personal service o.
whatever kind and in whatever form
paid. or from professions. vocations
business, trade. commerce or sales OF
dealings in property. also from inter
est, rent, dividends, securities, ipclud
ing income from property. income
from but not the value Of property
acquired by bequest. devise or do
! scent, and also proceeds OF life insur
,snce 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 q 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 fres,, storms
or shipwreck not compensated by In
surance or otherwise; debts actually
ascertained as worthless and charged
OF; also reasonable allowance FOL
wear and tear on property; but no de
duction will be allowed for expense
OF restoration or improvements made
to increase property value.
It excerpts also. in computing net In
come, amounts received as dividends
upon the stock Of any corporation
joint stock company, association OF
insurance company which is taxable
upon its net income under the cor
poration tax provision. of the bill.
IN 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 0l
any political subdivision thereof.
System Of Collection Framed.
1t establishes = system Of collection
Of the tax at It's source. requiring all
persons, firms, copartnerships, com.
panies, corporations. joint stock com.
panies, associations or insurance com.
panies, and all trustees. executors. ad'
illustrators, 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 such person. All
such persons or Arms are made per.
soually liable for such tax. M
Persons or corporations liable to
make return on incomes who fail to
do SO at q specified time, are made
liable to fine not exceeding $500 and
the penalty for false or fraudulent re
turns is fixed at $1,000 or. imprison,
mant not exceeding one year, or both
I'm formulating this additional i'm.
post" said Chairman Underwood IN
his report, "the attempt has been
made to provide not only . source OF
revenue, but also means Of redress
inE in some measure the unequal tai
burdens which result from the prac'
tice of basing the federal income On.
tirsly upon customs and internal reve'
nue. duties. This Is . system Of tag
alton which inevitably throws the bur
den OF supporting the government up
on the shoulders Of the consumers
1t. correspo4dingly exempts the mer
Of larger income. whose consumption
Of the ordinary necessaries Of life Il
subject to tariff taxation in > far Less
aggregate degree than Is that of: small
or income earners, who expend the
greater proportion Of their resources
for the ordinary necessaries Of life.'
Underwood Defends Plan.
Speaking OF the principle Of taxa
ton laid down and the graduated sys.
tenn proposed. Mr.. Underwood do
clared:
"The progressive principle already
has been sustained by the Supreme
court OF the United States in the In.
;heritance tax cases and there can b
no doubt that the same principle ap
plies to the income tax included in
this bill and will be fully upheld
should 1t ever be called into question
Owing to defects in personal property
taxation, the larger incomes In the
United States have for many years
been able to escape with less than
their. share OF the general burden OF
taxation, and this inequity will be. II
is believed, in part overcome by the
plan proposed. s.S, n NJ, RI
The bill provides that all taxable
persons shall be notified CT the amount
for which they are liable under the
law on or before the LIST day Of june
OF each year and assessments must be
paid on or before June 30. For delay
in making payments and ten days aft
er notice there shall be added the
sum of s per cent. of the amount OF
tar unpaid and interest. at the rate Of
i per cent. a month from the time the
tax fell due. g5.
i. The corporation tax provision, 1t ID
directed, shall be computed upon In
come for the year ending December
81, 1918. and for each calendar year
thereafter 1t is provided. however
that corporations may designate the
last day. Of any month as the day OF
the closing Of the fiscal year and may
have the tax computed on the basis
Of net income ending on It's designated
day. All labor. agricultural. horti'
cultural, fraternal, religious and mu
tual benefit societies are made exempt
from the tax.
Has the Earmarks.
Guide-ln front Of you 10 the M
uonal capitol. ss
Miss Gush-Oh. isn't it angelic?
Mr.. Grouch-AnEelic? Why. youul
woman. how can you speak Of It q
being angelica Il