The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1913-09-30
TWO PHASES TO
THE INCOME TAX
Representative Hull Who Drew
Provision Makes Public
Detailed Explanation.
TO DISTRIBUTE BLANKS
Information About New Law
To BE Given Out Through
{ Several Federal Agencies.

Washington, Sept. 3O-The treasury
department is preparing for a flood of
questions about the new income tax
realizing that this feature of the tariff
bin about to become law, strikes more
ultimately at the tax paying citizen
than do the indirect taxes collected
through the customs duties.
One of the first steps to get general
information before the public will be
to distribute income tax blanks
through postoffices, internal revenue
offices and other federal agencies.
However. the fact that he does not
receive a blank or a request to pay
the tax will not exempt a taxable per-
SON from the penalties of the law.
Representative CordeH Hull, of
Tennessee, who drew the income tax
provision of the tariff bill which will
soon became law. has made public n
detailed explanation of the tax plan,
as it will touch the individual citizen.
The treasury regulations soon to
be prepared will make clear to every
tax payer the requirements of the law
and its application to income derived
from the various kinds of business
said Mr. Hull. Amy person who
keeps familiar with his business af-
fairs during the year should have no
difficulty in executing his tax return.
phases, the normal tax of one per
cent on the whole income above three
thousand dollars and the additional
tax that begins with an extra one per
cent. above $4,000 and is graduated
to six per cent above $500, 900. Wher-
ever the income tax is paid at the
source by q corporation for its en-
ip1oyes or in similar cases, only the
loue per cent normal tax is so paid
The Individual has to pay any add1-
4ional tax himself. The provisions of
the law requiring the tax to be with
held at the source does not take eff
fleet until Nov. l. 1913
For the first year the citizen will
make return to the local internal rev.
cue collector before March 1, 1914,
as to his earnings from March l, 1913.
to the end of this year. The collector
will notify him June l., how much he
owes and the tax must be paid by
June 80. After next year the tax will
apply. on the full calendar year.
IF the income of a person is under
$4,000, or if the tax upon same is
withheld for payment at the source,
or if 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.
."The tax covers all incomes of citi-
zens of the United States whether
living here or abroad; those of for
the net incomes from property owned
or business carried on in the United
States by persons living abroad
The net income includes all in
come from salaries or any compensa-
Kion for personal services; incomes
from trades. professions, business or
commerce; from sales or dealings in
personal property or real estate; from
Interest, rent. dividend and securities,
from all lawful business carried on
for gain
sidered income; nor will life insur-
Rnce paid to a beneficiary, or re-
turned to the insured person as a
paid up or surrendered policy be
taxable. Interest on such property
will be included as income, however.
Living expenses cannot be de-
Quoted nor can money spent for per-
manent improvements to property.
The form that is to be filed out
by the taxpayer will be drawn up
Eoon by the commissioner of internal
revenue. The taxpayer will have to
give his gross revenue, and then spe-
city and claim the deductions to
which he feels entitled. Unless a
mans income tax is paid at the
source he must hunt UP a. tax blank,
fiji it out and see that it finds it's way
to the proper federal official in his
district before March 1, 1914.
Firms, corporations and the like
having the handling of interest, rents,
salaries or other portions of the in
rome of any citizen are compelled to
deduct the tax for the individual and
pay it to the government. The in
dividual then will receive a receipt
showing he has paid his tax