The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-11-01
INCOME TAX WENT
into EFFECT
TODAY
Much Confusion Is Sure at the
Start
MANY LAWSUITS ARE LIKELY
Until the Provisions Of the Law are
Known and Understood Questions
Sure to Arise.

Washington, Nov 1.-The income
tax. the most revolutionary revenue
raising power conferred on the Amer
lean government since its foundation
starts today upon the path that is to
bring millions into the public treas
ury. Although an income tax has
been agitated for many yea 5 and
its existence was assured by an
amendment to the constitution
agreed 10 by the necessary number
OF states early las spring, its collec-
ton by a government which has not
tried ii will strain the resources of
the fertile minds In the treasu y de-
partment ait Washington and will be
accompanied, il is not doubted at
Washington, with a thousand com
plicatons not now forseon. Ever
since President Wilson signed the
tariff bill with its income-taX provis-
ion early in October. the machinery
of the treasury department has been
at ok upon the regulations that
are 10 govern the collection Of the
tax. It has been task that has
kept Assistant Secretary Williams.
Deputy Commissioner of Internal
Revenue Specr and ether officials
constantly a, work and the end is
not in sight
Mr.. Williams said last night that
the regulations OF the department
al L.. nd htrf
some other officials in the depart
meni do not agree. Thousands OF
letters and kilograms bringing up
for settlement points in the new law
have poured into the department.
They have come from eye-y con
ceiyabe source, and added TO the
labor of making regulations, have
made the task OF the experts one
lot to be enyied.
No one in the t,easury depar ment
believes that the regulations so far
formulated are absolutely perfect,
but they will stand until someone
proves that they should be changed,
and officials are not inclined TO be-
lieye that expert lawyers employed
by big corporations particularly con
ce.ncd with collection lat the
source" Of income on bonds, mort.
cages, salaries. etc. have failed to
understand them.
Since the administration Logan
framing an income tax law, the talk
has gone the rounds in Washington
that 1t would lead to many fights in
the courts. and as the tariff bin
progressed through the Senate many
senator quietly expressed the view
that every line OF the income tax
! provision was subject for q lawsuit.
With the lawsuits the treasury de-
partment has little concern. Il is
not looking for them; its BUSINESS is
to so our and get the money and
that is what it is trying TO do. OFF
cials believe that the regulations
they have put out are framed, not
with an idea of causing trouble "a
those who must pay but in the only
way they could be framed to safe
guard the governments interest.
The man in the street who knows
he makes more than $4,000 year
and who is personally responsible
fer his share of the tax does not
need to begin worrying about his
payment TO, the present. The oper
alton OF the law today affects only
banks. corporations and others re-
sponsible for payment on bonds
mortgages. salaries. etc. For such
part as they are bound by Law they
must withhold "at the source. The
amounts so withheld are not p5yabl,
Immediately 20 the treasury and tn,
money from the tax will not begir
flowing in.o the treasury vaults fol
many months. The tax for 1913 is
to De collected from March l. soor
after the constitutional amendment
was ratified until December 81. witt
holding agents. however. must begiI
deduciing the normal tax OF pc
cent az the source today. Withholding
agents. however. must begin deduct
Ing the normal tax o. / per cent a
the source today. Withholding it TO
/ November and December. with Ger
tain exceptions. The individual re
/ porting upon his own income O
more than $1,000 a yea makes hi
return To- the collector Of intens
revenue in his district next March.