The Red Cloud chief., 1913-10-09
Interest from state, municipal o.
government bonds
Muat bo Entire met income"

II Ia q clear provision OF the law,
however. that tho taxable person must
make . return to tho internal revenue
collector for hs entire net income"
and exemptions claimed under the law
must be submitted to tho federal off,
GERS for them to determine upon their
rsasonnbleness or legality.
Tho amount Of the income tax. a.
finally agreed upon. follows.
From $4,000 to 10000. l per cent?
from $4,000 to $4,000, 3 per cent;
from 100000 to $4,000, 8 per cent;
from $4,000 to 100000. I per cent;
500. 900 to t250.O00. 6 per cent; $780,.
900 to $500 900. 8 per cent: above
100000. 7 per cent.
A single man with an income OF
&25.0O0. for example. would pay per
cent on $4,000 and 2 per cent on $500.
u total tax OF $?7O. II married. the
first tax Of per cent. would apply to
only $4,000 OF the income.
Ready to Answer Questions.
The treasury department Ia prepar>
ing for food OF questions about the
new income tax, realizing that this
featurs OF the tarir 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 Cordoll Hull Of Ten
nessee. who drew the income tax pro-
vision of the tariff bill which will soon
become law. made public a detailed
explanation OF the tax plan AZ It will
touch tho individual citizen.
The treasury regulations soon to
be prepared will make clear to every
taxpayer tho requirements Of the law
and It's application to income derived
from tho various kinds Of business"
Mr.. Hull said. ANY person who keeps
familiar with his business AFFAIRS. dur
Ing the year should have no difilculty
In executing his tax return.
How Tax 10 Divided.
Tho income tax IL divided into two
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
$40. 900 and IL graduated to six per
cent above $500O00. Wherever the
income tax Is paid at the source by .
corporation for It's employees or In simi.
lar cases. only the one per cent. nor
NAL tax Is so paid
"The individual has to pay any q
ditional tax himself The provisions
of the law requiring the tax to be
withheld at the source does not take
effect until November 1. 1913.
For the first year the citizen will
make return to tho local internal reve-
nue. collector before March 1. 1914.
as to his earnings from March l. 1918.
to the end Of this year. The collector
will notify him Juno I 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.
III the income Of . person 10 under
$4,000. or n tho tax upon same 10
withheld for payment at the source,
or II the same IL 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 cltixens.
The tax covers all incomes Of citi-
gems OF tho United Staten. 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.
come from salaries or any compensa.
ton for personal services: incomes
from trades. professions. business. OF
! commerce.; from sales or dealings In
} personal property or real estate: from
interest, rent. dividends from securi.
: ties: for all business carried on fol
gain.
, "BeQuests will not be considered In
} como. nor will life insurance paid q
. q beneficiary or returned to the In
: sured person - . paid up or sur
rendered policy be taxable. Interest
, on such property will be included q
} income. however.
I "The amount that may be deducted
from Q total income includes the coS'
l OF carrying on business. actual losses
: depreciation allowances. and tax ex
. empt or tax paid money. Living sx
. penses cannot be deducted. nor caE
= money spent for permanent improve
. ments to property.
Forms to 6e Ready Soon.
r "The form that 10 to be filled ou
8 by the taxpayer will be drawn vi
!. soon by the commissioner of intsrna
3 revenue. The taxpayer will have u
i give his gross revenue and then speci
fy and claim the deductions to whicl
q he feels entitled.
3 Unless q mans income tax 10 'pai'
at the source he must hunt up ta,
blank, fill 1t out. and see that 1t find
r its way to the proper federal ofhcia
:. In his district before March I. 1914.
Q Firms. corporations. and the lik'
having the handling OF interest, rents
3 salaries. or other portions OF the In
come OF any citizen are compelled tt
J. deduct the tax for the individual ant