Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1913-04-18

and the transfer TO the free list Of f
articles that are classed m necessa /
rtes Of living
Incomes OF taxable persons shall !
include gains, pro1ts and income do /
rived from salaries, wages or com I
pensation for personal service OF /
whatever kind and in Whatever form
paid. or from professions, vacations /
business, trade. commerce or sales o.
dealings In property. also from inter
est. rent, dividends. securities. ihclud /
ing income from property. income /
from but not the value OF property .
acquired by beQuest. devise or dc
scent. and also proceeds OF life insur
Ance policies paid upon death Of per
sons insured.
Provision Made fer Deductions
The bill allows as deductions In
computing net income all necessary
expenses actually incurred In carrying
on any business. not including per
sonRl living or family expenses, inter
est accrued and payable within the
year by a taxable person on indebted
ness; all national. state. county
school and municipal taxes. not In
GLIDING local benefit taxes: losses In
CURED In trade or from fires storms
or shipwreck not compensated by In
surance or otherwise: debts actually
ascertained as worthless and charged
1 off: also reasonable allowance for
wear and tear on property; but no de
duction will be allowed for expense
| OF restoration or improvements made
to increase property value
Il excerpts also. In computing net in
come. amounts received as dividends
upon the stock OF any corporation.
joint stock company. association or
insurance company which Is taxable
upon its net income under the cor
poration tax provision OF the bill.
The bill excludes the compensation
| of the president OF the United States
during his term. that Of judges OF the
Supreme and inferior courts of the
| United States. and compensation II
all officers and employees OF a state or
any political subdivision thereof.
System Of Collection Framed.
1t establishes a system OF collection
of the tax at it's source, requiring all
persons, firms, copartnerships. com
panies, corporations, joint stock com.
panies, associations or insurance com.
panies. and all trustees, executors, ad.
ministrators. receivers. etc. and OH
GERS and employees OF the United
States having the control or disposal
of salaries, wages, interest and other
profits and income of another person
to withhold and pay to the collector
OF internal revenue the amount OF In.
come tax due from such person. All
such persons or firms are made per
sonally liable for such tax.
Persons or corporations liable TO
make return on incomes who fail TO
do so at a specified time. are made
liable to a fine not exceeding $500 and
the penalty for false or fraudulent re-
turns is fixed at 81 900 or impriBon-
ment not exceeding one year. or both.
In formulating this additional im-
post" said Chairman Underwood In
his report, "the attempt has been
made to provide not only source OF
revenue, but also means of redress.
Inc In some measure the unequal tax
burdens which result from the prac-
tice OF basing the federal income en-.
tireIy upon customs and internal reye-
nue. duties. This ID q system OF tax
alton which inevitably throws the bur.
den of supporting the government up.
on the shoulders of the consumers
II correspondlngly exempts the men
of larger income, whose consumption
of the ordinary necessaries OF life ia
subject to tariff taxation In a far less
aggregate degree than Is that Of small
er income earners, who expend the
greater proportion Of their resources
for the ordinary necessarles of life
Underwood Defends Plan.
Speaking of the principle Of taxa
ton laid down and the graduated sys
tenn proposed. Mr.. Underwood de
clared:
THE progressive principle already
has been sustained by the Supreme
court OF the United States In the in
herltance tax cases and there can BE-
no doubt that the same principle ap
plies to the income tax included II
this bill and will BIO fully upheld
should II ever be called into question
Owing to defects in personal property
taxation, the larger incomes in ths
United States have for many year,
! been able To escape with leas thar
their share of the general burden o.
, taxation, and this inequity will be. 4
liz believed. In part overcome by th'
plan proposed"
, The bill provides that all taxable
persons shall be notified OF the amoun
for which they are liable under th'
law on or before the LIST day Of Jun'
OF each year and assessments must b
paid on or before June 30. For delal
in making payments and ten days aft
: er notice, there shall be added thi
sum OF 5 per cent. Of the amount o
tar unpaid and interest at the rate o
. 1 per cent a month from the time th'
tar fell due.
The corporation tax provision. 1t 4
directed, shall be computed upon in
come for the year ending Decembe
81, 1918, and for each calendar yea
J thereafter It is provided however
that corporations may designate tn
, last day of any month as the day o
the closing Of the fiscal year and ma!
! have the tax computed on tbs basil
of nat fnc0nna ending on ita dnstRnatai