The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-04-08
Propose to Keep Party Pledge of Downward Revision

and In whatever form paid. or from
professions. vocations. businesses,
| trade, commerce. or sales or dealings
In property. also from interest. ront.
dividends. securities. including income
from property: income from, but not
the value OF, property acquired by DO
quest, devise or descent. and also pro
cecds of life insurance policies paid
upon death or persons insured.
me Dill allows. as deductions, In
computing not income. all necessary
expenses actually incurred In CARRYING
on any business. not Including per-
sonal living or family expenses. In
terest accrued and payable within tho
year by taxable persc<.-.on Indebted
| ness; all national. State, county, school
and municipal taxes. not includins
local benefit taxes: losses incurred I'm
trade or from fires. storms or shin
wreck not compensated by insurance
or otherwise: debts actually ascertain
co as worthless and charged off: also
reasonable allowance for wcnr and tear
OH property. but no deduction win no
allowed ;or expense or restoration or
improvements made to increase prop
erty value.
1t excerpts. also. In computing net in
come. amounts received as dividends
! upon the stock of any corporation.
1oint stock company. association or
insurance company which Is taxable
upon us not income under the corpo-
'"''ch 'hS PROVISIONS the DILL
The bill excludes the compensation
of the President OF the United States
during his term. judges OF the Supreme
and inferior courts OF the United
States. and compensation Of all officers
and employees OF q state or any politi-
cal subdivision thereof
1t establishes system OF collection
OF tho tax at its sources requiring all
I persons firms. co-partncrshis -. COM
nanies. corporations. joint-stoclz conn
panies, associations OF Insurance com
panics. and an trustees executors. nd
mfnistrators, receivers. etc. and officers
and employees OF the United states hav-
ing the control or disposal OF salaries
wages. interest and other profits and
I income OF another person. 10 withhold
and pay to the Collector OF Internal
Revenue the amount OF income tax
due from such person. All such per-
sons or firms are made personally
liable for such tax.
Penalties Provided.
Persons corporations liable 10
make return on incomes who Tall 10
do 80 at n specified time, arc made
liable TO a fine not exceeding $500 and
the penalty for false OF fraudulent re-
turns IS fixed at $1,000 or lmprison-
nent not exceeding one year. or both.
In formulating this additional Inn
post" said Chairman Underwood In
his report. the attempt has been
made 10 provide, not only n source of
revenue. but also mems or redress
Ing IN gone measure the UNEQUAL tax
burdens. which result from the p-ac-
ticc OF basing the Federal income on
ttrely upon customs and internal reve-
nue. duties This is a si'stcm Of tax
alton which Inevitably, throws the
burden OF supporting tho government
upon the shoulders OF the consumers
1t correspondingly exempts tho men
OF larger income. whose consumption
OF the ordinary necessaries or life il
subject to tariff taxation in far less
aggregate degree than Is that OF the
smaller income carneTs. who expend
the greater proportion OF their re
sources for the ordinary necessities OF
nfe."
Speaking OF the principle Of taxi.
alton laid down and the graduated
system proposed, Mr.. Underwood de-
clared:
The progressive principle ALREADY
has been sustained by the supreme
Court OF the United States in tho in
heritance tax cases, and there can be
no doubt that the same principle APP
plies TO the income tax included ia
this bill, and vill be fully upheld
should il ever be called into question
owing TO defects in personal property
taxation. the larger incomes in tho
United states have for many wears
been able TO escape with lees than IN 0ir
share OF the general burden of taxa
ton. and this iniquity VIII be it ia be-
lieved. in part overcome by tho plan
proposed"
The bill provides that ali taxable
persons shall be notified OF the amount
for which they are liable under the
law on or before the first day of June
OF each year and assessments be paid
on or before June 80. For delay in
making payments and ten days after
notice, there shall bo added the sum
o! per cent on tho amount of tax
unpaid and interest at the rate of l
per cent a month from the time the
tax fell due.
The corporation tax provision. II Is
directed. shall be computed upon in
come for the year ending December 81,
1918 and for each calendar year there.
after. II is provided however. that cor
porations may designate the last day
OF any month az the day OF the closing
of the fiscal year, and may have the
tax computed on the basis of net in
come ending on its designated day. All
labor. agricultural. horticultural. fra
ternal. religious and mutual benefit
societies are made exempt from this
proposed tax.