The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1913-04-10
|ALL INCOMES OVER
$4,000 FACE TAXI
Bill Is Included in New Tariff
Measure.
RATE ON MILLION sas,2eo'
Sliding Scale 10 Provided for Yearly
Earnings Over 10000 Mark
VIII Raise 100000. 900
Revenue Yearly.

Washington, April 8.--Included in.
the Democratic tariff revision bill in
troduced In congress ia an income tax
section. which would require every
resident of the United States who
earns more than $1,000 year to pay !
tax of one per cent on his earnings
In excess Of the exemption. |,
This would not require the man who
earns only $4,000 to pay q tax. but it /
would demand that the individual who
earned S4,100, for example. pay into
the government treasury an annual
tax of one per cent. on 500, or one
dollar.
Surtax 10 Added.
The bill also would provide higher
rates OF taxation for persons with
larger incomes, adding a surtax Of one
per cent. additional on earnings in ex-
cess Of $4,000; two per cent. addition !
al on earnings in excess of $4,000.
and three per cent. additional on earn
ings in excess OF 100000.
Under the surtax provisions the
man who earns only $4,000 would pay
rate of one per cent on $4,000 $4,000
exempt, or $3.50. II he earns $4,000
he would pay one per cent. on $4,000
still and two per cent. on $4,000, thus
making his annual tax $3.50. The per
son with $4,000 income would pay
one per cent. on $4,000 and two per
cent on 10000 total tax OF $3.50.
The man with an income Of 100000
would be required to pay one per cent.
on $4,000, two per cent. on $4,000
and three per cent. on $4,000, which
would be $1,000, bringing his total in
come tax to $4,000
Million Income to Pay $38,26o.
The individual with net income Of
a million would pay this $2,260 on his
first 100000 and in addition he would
pay four per cent. on 100000, which
would bring his total tax to $3s, $50.
present corporation tax law imposing
a one per cent tax ON the earnings Of
corporations, stock companies, insur-
ance companies and the like. but 1t
would exempt partnerships. This is a
nat tax, there being no graduated
scale as the earnings increase.
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 ap
proximately 3100,O00,000 in revenue
may be derived from this new tax. in
Guiding the corporation tax, that
amount making up for the deficit In
revenues to be derived from imports
by virtue OF the greatly reduced tarih
rates and the transfer to the free list
of articles that are classed as neces-
sarles OF living.
Bill Allows Deductions.
The bill allows as deductions in
computing net income all necessary
expenses actually incurred in carrying
Oh any business, not including person
al. living or family expenses, interest
accrued and payable within the year
by a taxable person on schol and mu-
nicipal taxes, not including local bene-
fit taxes; losses incurred in trade or
from fires, storms or shipwreck not
compensated by insurance or other
wise; debts actually ascertained az
worthless and charged off; also rea-
sonable allowance for wear and tear
on property, but no deduction will be
allowed for expense of restoration or
improvement made to increase prop
erty value.
The bill excludes the compensation
of the president Of the United States
during his term. judges of the Su-
preme and inferior courts Of the Uni
ted States, and compensation of all
officers and employees of state or
any political subdivision thereof.