The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-10-08
FEATURES OF THE
INCOME TAX LAW
Minimum Exemption Is Placed
at $4,000 Annually.
$1,000 MORE FOR FAMILIES

Additional Taxes For Incomes Above
$4,000, Increasing Until the Maxi.
mum of 6 Per Cent Is Reached on
the Excess Above $5oo,0oo-PenaIsies
For Failing to Make Reports.
Inc income tax feature Of the new
tarlH law. made possible by the adop-
uon OF an amendment to the federal
constitution, marks q new feature in
tarlH legislation. 1t is expected to
yield an annual revenue exceeding
$lOo,OOOOO0, which makes possible the
reduction of tariff duties.
Under the terms of the new law n
tax of 1 per cent will be levied on all
incomes in excess of $4,000 with Ger.
tain exemptions. The bill provides
that there shall be IAN additional tax
or 1 per cent per annum upon the
amount by which the total net income
exceeds $4,000 and does not exceed
$oo,oOO, 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 Der cent per an.
mum upon the amount by which the
total net income exceeds $4,000 and
does not exceed 100000, per cent
per annum upon the amount by which
the total net income exceeds S1O0 OOC
and does not exceed $25O,OOO, 5 per
cent per annum upon the amount by
which the total net income exceeds
$2oO,OOO and does not exceed S5OOOOO
ana q per cent per annum upon the
amount by which the total net income
exceeds $5OOOOO." i.
individuals to Make Returns.
Every person subject TO the income
tax must make report of his income
TO the collector of internal revenue in
the district in which he lives or in
which his business is carried on.
In defining what shall be considered
income for taxation, the bill saws:
Subject only to such exemptions
and deductions as are hereinafter al
lowed, the net income of a taxable
person shall include gains, profits and
income derived from salaries, wages
or compensation for personal service
Of whatever kind and i'm whatever form
paid, or from profess ions, vOcations.
businesses, trade, commerce or sales or
dealings in property, whether real or
personal, growing out of the ownership
or use of or interest i'm real or personal
property; also from interest. rent. diyi-
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
cluding 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 or credited.
to the insured on life insurance. en-
dowment or annuity contracts upon
the return thereof to the insured &c the
maturity Of the term mentioned in tie
contract or upon surrender of the con-
tract shall not be included as income"
The provisions Of the bill for exemp-
tions 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 $4,000 plus $1,000
additional if the person making the re-
turn be a married man with q wife.
living with him and being herself not
taxable under the income tax law, or
plus the sum of 81 900 additional if the
I, Il
woman with husband living with her
and being himself not taxable under
the income tax law, but i'm no event
shall this additional exemption Of ST.
600 be deducted by both a husband
and wife,"
Foreign Residents to Be Taxed.
The bill contains provisions for the
taxation Of the incomes of citizens re-
siding in foreign countries on incomes
derived from property owned or busi-
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 the
return or pay the tax aforesaid shall
refuse or neglect TO make return at
the time or times hcreinbefore Speci-
fed in each year, such person shall be
liable TO Il penalty of not less than $50
nor more than $1,000. Any person or
any officer Of any corporation required
by law to make, render, sign or verify
any return who makes any false or
fraudulent return or statement with in
tent TO defeat or evade the assessment
required by this section to be made
shall be guilty of n misdemeanor and
shall be fined not exceeding $1,000 or
be imprisoned not exceeding one year,
or both. Mt the discretion of the court,
with the costs of prosecution"
The first tax is to be levied and COL
lected on incomes from March l, 1913.
to Dec. 81, 1913. Thereafter the in
come shall he computed for calendar