The Bridgeport evening farmer., 1913-04-07

w 2En1ngIOn, ApTll G-N1LCO1no IdA1 Included in the Democratic tariff revision bill introduced in Congress today is an Income tax section which would require every resident of the United States who earns more than s4OOO a year to pay a tax of one per cent on his earnings in excess of the exemption.
 This would not require the man who earns only $4,0OO to pay a tax, hut it would demand that the indi- viduaI who earned s4,10o, for example, pay into the government treasury an annual tax of one per cent on S1oO, or ST.
 The bill also would provide higher rates of taxation for persons with larger incomes, adding surtax of one per cent additional on earnings in excess of $20,O0O; two per cent add1- tional on earnings in excess of $5o,- 900; and three per cent additional on earnings in excess of $100OO0-
 Under the surtax provisions the man who earns only $2o,oO0 would pay to the government each year at the rate of one per cent on $16,OOo, CS4,- 900 exempt) or $160. If he earns ESQ., OOO he would pay one per cent on SIS 900, still and two per cent on $1O,- GOO thus making his annual tax $S6O
 The person with a $o0,o00 income would pay 1 per cent on $16,OOo ana two per cent on $3o,0o0-a total tax of $7eo.
 The man with an income of S1o0, coo would be required to pay one per cent on $16, 900, two per cent on $S0,ooO and three per cent on $500 which would be $1. 800, bringing his total income tax to $2,2e0. The individual with a net income of million would pay this s2,2e0, on his first s1o0Ooo and in addition he would pay four per cent on s9Oo 900, which would bring hts total tax to Sas,26o-
 The b8z1 also would re-enact the present corporation tax law impos- ing a one per cent 4ex on the earn inRs Of corporations, stock companies, insurance companies and the like, out 1t would exempt partnership. This IS a flat tax, there being no graduated scale as the earnings increase. The few changes from the present cor poration tax act concern chiefly the time of making returns and the time for the collection The bill also 1n- ciudes under it's provisions the prop erfy and earnings in this country Of persons who live abroad.
 It is estimated by members of the Ways and Means committee that ap- proximateiy S1oo, 100000 in revenue may be derived from this new tax, including the corporation tax, that amount making up TOT the deficit in revenue to be derived from imports by virtue of the greatly reduced tariff rates and the transfer to the free list Of articles that are c1asSed as necessaries 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 cluding income from property, income from but not the value of property acquired by bequest. devise or des- cent, and also proceeds of life in surance policies paid upon death of persons insured.
 The bill allows as deductions in computing net incomes all necessary expenses actually incurred in carry ing on any business not including peronaI living or family expenses, in terest accrued and payable within the year by a taxable person on indebt- edness; all nation, state, county, school and municipal taxes, not in cluding local benefit taxes, loss as in cured in trade or from fires, storms or shipwreclx not compensated by in surance or otherwise; debts actually aecertained as worthless and charg- ed off; also reasonable allowance for wear and tear on property, but no deduction will be allowed for expense Of restoration or improvements made to increase property value.
 It excepts also, in computing net income 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 compensati ton of the president of the U. $. durin g hIs term, judges of the Supreme and inferior courts of tn United States and compensation of all officers and employees of a State or any political Ub-dtvision thereof.
 It establishes a system of collection of the tax a it's source, requiring all persons, firms, o-partnerships, com panies, corpora tions, joint stock com pauies, associations or insurance com panies and all trustees, executors, ad- Ininistrat tors, receivers, etc, and off1c- CTS and employees of the United States having the control or disposal of sal aries, wages, interest and other prof it's 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 firms made per sonaIy liable for such tax.
 Persons or corporations liable to make return on incomes who fail to do so at a specified time are made liable to a fine not exceeding $500 and returns is fixed at s1.0OO or imprison- EnAnt nat exceeding one year. or