The Birmingham age-herald., 1913-09-30

NS''A''Ast'o 6oNS MS ficWo oii tui City
Democratic Leader Underwood pre-
sented tariff bill conference report and
secured agreement for meeting of
House at IL clock Tuesday to debate
report
Adjourned at 1918 O'Clock. until Il
o'clock Tuesday.
Washington, September 29.-The treas
ury department is preparing for flood
of questions concerning the new income
tax, realizing that this feature of the
tariff bill about to become law strikes
more intimately at the taxpaying citizen
than do the indirect taxes collected
through customs duties.
One of the first steps taken to get gem
eral information before the public will be
to distribute income tax blanks through
postoffices, internal revenue offices and
other federal agencies.
However the fact that he does not re-
ceive blank or request to pay the tax
will not exempt a taxable person from
the penhilleS Oh the law
Representative Cordell Hull of Tennes-
see, who drew the income tax provision
of the tariff bill, today made public a
detailed explanation of the tax plan as
1t will touch the individual citizen.
Soon to Be Prepared
THE treasury regulations soon to be pre-
pared will make clear to every taxpayer
the requirements of the law and it's ap-
plication to income derived from the vari-
Gus kinds of business" said Mr.. Hull
neTfen who zseps familiar with his
business affairs during the year should
have no difficulty in executing his tax re-
turn.
The income tax is divided into two
phases, the normal tax of l per cent on
the whole income above s3000 and the adj
ditiona1 tax that begins with an extra l
per cent above $4,000. and is graduated
to 6 per cent above $4,000. wherever
the income tax is paid at the source by
a corporation for its employees or In sini-
lar cases, only the 1 per cent normal is
SO paid The Individual has nto pay an
additional tax himself The provisions
of the law requiring the tax to be with
until November |, 1913.
For the first year the citizen will make
return to the local internal revenue col
lector before March /, 1914, as to his earn
ings from March l, 1918, to the end of
this year. The collector will notify him
June how much he owes and the tax
must be paid by June 80 After next year
the tax will apply on the full calendar
year
If the income of a person is under
5000, or If the tax on same is withheld
for payment at the source, or II the
same is to be paid elsewhere in the
United States, AFFIDAVIT may be made to
such fact and thereupon no return will
be required.
Covers All Incomes
THE tax covers all incomes of citizens
of the United States, whether living here
or abroad, those OF foreigners living in
the United States and the net incomes
from property owned or business carried
on In the United States by persons liv-
Ing abroad.
1.-The net income includes all income
from salaries or any compensation for
personal services; incomes from trades,
professions, business or commerce; from
sales or dealings in personal property or
real estate; from interest, rent, dividend
and secuities from all lawful business
carried on for gain.
Gifts or bequests will not be consid-
cred income; nor will life insurance paid
to beneficiary or returned to the in
sured person as paid up or surren-
deed policy be taxable. Interest on such
property will be included as income, how
ever.
1.-THE amount that may be deducted
from a total includes the cost of carry
ing on business, actual losses, deprecia-
ton allowances and tax exempt or tax
paid money. Living expenses cannot be
deducted, nor can money spent for per-
manent improvements to property.
The form that Is to be filled out by
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