Lincoln County times. (Jerome, Idaho) 1911-1919, 1913-10-09
Interest from state. municipal q
government bonds.
Must be Entire "Net Income"

anu tAtulpllOIo uHQtl INC Ia "
must be submitted TO the federal on
GERS for them to determine upon their
reasonableness or legality.
The amount of the income tax. as
finally agreed upon. follows:
From $1,000 TO $4,000. l per cent;
from $4,000 to $4,000. per cent;
from $4,000 to $4,000, per cent:
from $4,000 to 100000. 4 per cent:
500. 900 to s25O.OOO. per cent: $780,
900 to 100000. per cent: above
100000. per cent
A single man with an income OF
$4,000 for example. would pay l per
cent on sl7 900 and per cent on $500.
total tax OF 1870. II married. the
nrst tax OF per cent. would apply to
only $4,000 OF the income
Ready to Answer Questions.
The treasury department is prepar.
ing for a food OF questions about the
new income tax. realizing that this
feature OF the tariff bill about TO be-
come law strikes more intimately at
the tax paying citizen than do the
indirect taxes collected through the
customs duties
Representative Cordell Hull OF Ten
nessee. who drew the income tax pro-
vision OF the tariff hill which will soon
become law. made public detailed
explanation OF the tax plan as II will
touch the individual citizen.
The treasury regulations soon to
be prepared will make clear TO every
taxpayer the requirements OF the law
and It's application TO income derived
from the various kinds OF business"
Mr.. Hull said. Amy person who keeps
familiar with his business affairs. dur
ing the year should have no difficulty
in executing his tax return
How Tax ls Divided.
The income tax is divided into tvs
phases. the normal tax OF one per
cent. on the whole income above |
$4,000. and the additional tax that be |
gins with an extra one per cent above |
$4,000 and is graduated to six per
cent. above 100000. Wherever the
income tax is paid at the source by a
corporation for its employees or in SINH /
lar cases, only the one per cent. nor
NAL tax is so paid
The individual has to pay any a.
ditional tax himself The provisions
OF the law requiring the tax 10 be-
withheld at the source does not take
effect until November /. 1918
For the first year the citizen will
make return to the local internal reve-
nue. collector before March /. 1914
as to his earnings from March /. 1918.
10 the end OF this year The collector
will notify him June l how much
he owes and the tax must be paid
by June 30. After next year the tax
will apply on the full calendar year.
III the income OF person Is under
s5,VVO. or II the tax upon 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 Incomes Of All Citizens.
The tax covers all incomes OF citL
zens OF the United States, whether liv
Ing here or abroad; those OF foreign +
ers living In the United States. and
the net incomes from property owned
or business carried on In the United
States BY persons living abroad.
The net income includes all in.
CONS from salaries or any compensa
tion for personal services: incomes
from trades. professions. business. or
commerce. from sales or dealings in
personal property or real estate: from
interest. rent. dividends from securi
ties; for all business carried on for
gain.
requests will not be considered In.
come. nor will life insurance paid to
a beneficiary or returned to the in.
sured person as paid up or sur
rendered policy be taxable Interest :
on such property will be included as
income. however
The amount that may be deducted !
from total income includes the cost {
OF carrying on business, actual losses.
depreciation allowances. and tax e1-
empt or tax paid money. Living ex-
penses cannot be deducted. nor can
money spent for permanent improve
ments to property
Forms to Be Ready Soon.
The form that is to be filled out
by the taxpayer will be drawn up
soon by the commissioner OF internal
revenue. The taxpayer will have to I
give his gross revenue and then speci.
~ and claim the deductions TO which s
he feels entitled J
Unless mans income tax is paid
at the source he must hunt up a tax
blank. fill 1t out. and see that It finds
Its way to the proper federal official ;
In his district before March l. 1914 I
Firms. corporations. and the like
having the handling OF interest. rents. 4
salaries, or other portions OF the in
come of any citizen are compelled to
deduct the tax for the individual and
pay 1t to the government The indi. II
vidual then will receive receipt
showing he has paid his tax" s.