The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1913-10-03
GET READY FOR THE
INCOME TAX MAN
EARLY NEXT SPRING
THAT is IF YOU HAVE MORE
THAN THREE THOUSAND
INCOME.
MARRIED, IT IS $4,000
Only 425,o00 In the United States II.
able, and Will Bring $s2,2ss, 900.
President and Lot of Other Officials
Are Made Exempt.

President and Lot of Other Official.
Are Made Exempt.
WASHINGTON, d. c., Sept 49,
According to estimates completed to
day by treasury experts, 425,O0C
American citizens must keep such &C
curate accounts of their incomes this
year that they will be able to report
to the income tax collector next
spring exactly how much they owe
the government under the new in
come tax law.
So far as he taxable American is
concerned the income tax law is now
practically in force against him.
While the tariff bill in which the law
is embodied will not be signed until
next week, the first returns do not
have to be made to the internal rev.
enue collectors before March /, 1914.
But when the returns are made they
will cover the income of citizens
from March l., 1918, to December 81,
and the first payment Of tax will be
for money received during this pc
riod.
Every single person (citizen or for
eign resident, whose annual income
exceeds $4,000 and every married per-
son with an income above $4,000 is
expected to report his or her receipts
in detail to the government agents
March l each year. The estimate
completed today indicates that the
income tax will produce $S2,29S, 900
from the 425,00O persons taxed. To
this will be added the $35,000,0O0 or
more produced by the present cor
poration tax, which is continued as a
part Of the law.
President Wilson, the federal judg-
es of the supreme and inferior courts
now holding Office and employees Of "a
state or any political subdivision
thereof" are the only persons specif-
ically exempted from the tax by the
new law. The president and judges
now in Office were made exempt to es-
cape any question Of the constitu-
tionality of the law, but their success
sors in Office will be compelled to
pay the tax.
Under the law as it will be signed
by President Wilson next week, ev-
cry large company employing labor
will be compelled to report any reg
ular salaries it pays in evcess of 49,
900 and will pay the taxes for their
employees and will deduct the tax
from their envelopes.
In figuring up his net income the
American business man after deduct
ing $4,000 for himself and $4,000 II
married, he will have the right to
claim the following additional ex-
Necessary expenses for carrying on
business, not including personal liv-
ing or family expenses.
Interest paid out on indebtedness.
National, state, county, school or
taxes paid within the year.
Trade losses or storm or fire losses
not covered by insurance.
Worthless debts charged of during
the year.
A reasonable allowance for the de-
probation of property.
Dividends from companies whose
incomes have already been taxed.
Interest from state, municipal and
government bonds.
1t is a clear provision of the law,
however, that the taxable person
must make a erturn to the internal
revenue collector for his entire net
income, and exemptions claimed un-
der the law must be submitted to fed
eral officers for them to determine
upon their reasonableness or legali-
ty.
The amount of the income tax as
finally agreed upon follows: From
SO 900 to s25O,OOO. 3 per cent; $780,
900 to 100000. per cent; above
100000, Z per cent.
A single man with an income of
s25 900, for example, would pay l per
cent on $4,000 and per cent on $5,-
900, total tax of s270. II married
the first tax of l per cent would APP
ply to only $4,000 of the income.