Lincoln County times. (Jerome, Idaho) 1911-1919, 1913-04-17

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 or 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 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 shipwreck not compensated by in
surance or otherwise; debts actually
ascertained as worthless and charged
on; also reasonable allowance for
wear and tear on property; but no de-
duction will be allowed for expense
OF restoration or improvements made
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 o. 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 a state or
any political subdivision thereof.
System of Collection Framed.
1t establishes a system OF collection
OF the tax at its source, requiring all
persons, firms, partnerships, com
panies, corporations, joint stock com
panies, associations or insurance com
panies, and all trustees, executors. ad.
| to-
GERS and employees of the United
States havipy 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. AL
such persons or firms are made per
sonally liable for such tax.
Persons or corporations liable L
make return on incomes who fail Z
do so at a specified time. are mad
liable to a fine not exceeding $500 ant
the penalty for false or fraudulent re
turns is fixed at $1,000 or imprison
ment not exceeding one year. or both
In formulating this additional i'm
lOcls cdlQ 1Idil NH0tl NOOd IL
his report, the attempt has beel
made TO provide not only source o
revenue, but also a means of redress
ing in some measure the unequal ia,
burdens which result from the praC
tice OF basing the federal income er
tirely upon customs and internal reve
nue. duties. This is a system Of tas
oh - he htt,
den OF supporting the government W
on the shoulders OF the consumer:
1t correspondingly e1empts the me
OF larger income. whose consumptio
OF the ordinary necessaries of life
: subject to tariff taxation in a far les
aggregate degree than is that OF small
er income earners. who expend tn
greater proportion OF their resource
for the ordinary necessaries of life.
Underwood Defends Plan.
: Speaking OF the principle OF tax:
ton laid down and the graduated sy'
, tenn proposed. Mr.. Underwood d.
clared
The progressive principle alread
has been sustained by the Supren
court of the United States in the il
heritance tax cases and there can b
, no doubt that the same principle a.
> plies to the income tax included
this bill and will be fully uphel
ehould it ever be called into question
Owing TO defects in personal propert
taxation. the larger incomes in I'll
United States have for many year
: been able to escape with less tina
their share of the general burden
q, taxation. and this ineQuity will be.
is believed. in part overcome by III
, plan proposed
= The bill provides that all taxabl
persons shall be notified OF the amour
>, for which they are liable under tn
= law on or before the list day OF Jun
of each year and assessments must
paid on or before June so For della
y in making payments and ten days af
y er notice. there shall be added III
sum OF per cent Of the amount {
tax unpaid and interest at the rate
u per cent month from the time III