Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-04-07

The person with $4,000 income
would pay 1 per cent on $4,000 and
per cent. on 100000 total tax of
$3.50. The man with an income of
| $780, 900 would be required to pay
per cent. on 1000. 2 per cent. on
$50, 900 and per cent. on $50, 900,
which would be $500. bringing his
total income tax to $3.50. The IN
dividual with net income Of mil
| lion would pay this $3.50 on his
| first $1,000 and in addition he
would pay per cent on 100000,
which would bring his total tax to
sss, ESQ
Would Exempt Partnerships.
The bill also would reenact the
present corporation tax law imposing
a / per cent. tax on the earnings of
corporations. stock companies. in
suranee companies and the like, but
it would exempt partnerships.
This IS fat tax, there being no
graduated scale as the earnings in
crease. The few changes from the
present corporation tax act, con-
corning chiefly the time of making
returns and the time for collection
The bill also includes under its pro-
visions the property and earnings in
this country of persons who live
abroad.
| 1t is estimated by members of the
ways and means committee that APP
proximately 500, 900 in revenue
may be derived from this new tax,
including the corporation tax, that
amount making up for the deficit in
revenues to be derived from imports
| by virtue of the greatly reduced
| tariff rates and the transfer to the
free list OF articles that are classed
as neeessaries of living.
Incomes OF taxable persons shall in
clude 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, vacations,
businesses, trade. commerce, or sales
or dealings in property. also from in
| terest, rent, dividends, securities, in
Guiding 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.
Business Expenses Deducted.
| The bill allows as deductions in
computing net income all necessary
expenses actually incurred in carry
| ing on any business, not including
personal living or family expenses, in
terest accrued and payable within the
year by taxable person on indebted
ness; all national, State, county, school
and municipal taxes, not including To-
cal benefit taxes; losses incurred in
trade or from fires, storms or ship
| wreck not compensated by insurance
or otherwise; debts actually ascer-
tanned as worthless and charged off;
also, reasonable allowance for wear
and tear on property, but no deduot
ton will be allowed for expense of re-
storation or improvements made to
| increase property value.
| 1t excerpts, also, in computing net
| income, amounts received as divi-
dends upon the stock of any corpora
| ton, joint stock company, association
or insurance company which is tax
able upon its net income under the
corporation tax provision of the bill.
The bill excludes the compensation
of the President of the United States
during his term, judges Of the SUI
preme and inferior courts of the Uni
| ted States, and compensation of all
officers and employees of a State or
any political ub.division thereof.