Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1913-10-10

National. state. county. school or
municipal taxes paid within the year.
Trade losses. or storm or Ere
losses, not covered by insurance.
Worthless debts charged Oh during
the year
A reasonable allowance for the de-
probation OF property.
Dividends from companies whose in
comes have already been taxed.
Interest from state, municipal or
government bonds.
Must be Entire "Net Income"
II IL q clear provision Of the law.
however. that the taxable person must
make q return TO the internal revenue
collector for his entire met income"
and exemptions claimed under the law
must be submitted to the federal ON
cers for them TO determine upon their
reAsonAbleness or legality.
The amount OF the income tax. az
finally agreed upon. follows:
From $4,000 to sac 1000, l per cent
from $4,000 to $4,000. per cent:
from $4,000 to $4,000. 3 per cent:
from $4,000 to 100000. per cent:
500, 900 to $3.50 900. per cent; $780,
900 to 100000. per cent: above
100000, per cent
A single man with an income of
$4,000. for example. would pay 1 per
cent on $4,000 and per cent on $500.
a total tax of 1910. III married, the
hrst tax OF per cent, would apply to
only $4,000 of the income.
Ready 10 Answer Questions.
The treasury department is prepar,
ing for flood Of questions about the
new income tax. realizing that this
feature OF the tariff bill about 10 be-
come Law strikes more intimately at
the tax paying citizen than do the
indirect taRes collected through the
customs duties,
Representative Cordeil Hull OF Ten.
nessee, who drew the income tax pro
vision OF the tariff bill which viii soon
become law, made public a detailed
explanation or the tax plan as It will
touch the individual citizen.
The treasury regulations soon 20
be prepared will make clear to every
taxpayer the requirements OF the law
and its application to income derived
from the various kinds of business. .
Mr.. Hull said ANY person who keeps
familiar with his business affairs. dur.
Ing the year should have no difficulty
In executing his tax return.
How Tax Is Divided.
The income tax IL divided into two
phases. the normal tax of one per
cent. on the whole income above
$1,000, and the additional tax that be-
gins with an extra one per cent. above
$4,000 md is graduated to six per
cent. above $50O.0O0 Wherever the
income tax 10 paid at the source by n
corporation for its employees or in SINH
lar cases, only the one per cent nor.
NAL tax 10 so paid.
1.-THE individual has to pay any O.
| ditional tax himself. The provisions
of the law requiring the tax to be
withheld at the source does not take
effect until November /. 1918.
"For the first year the citizen will
make return TO the local internal revo-
nue. collector before March /. 1914,
as to his earnings from March /. 1919.
to the end of this year. The collector
will notify him June 1 how much
he owes and the tax must be paid
by June 80. After next year the tar
will apply on the full calendar year.
IF the income OF a person Is under
$4,000, or II the tax upon same iz
withheld for payment at the source
or IL the same IL to be paid elsewhere
in the United States. afIidRvit may be
made to such fact and thereupon nc
return will be required.
Covers Incomes OF All Citizens.
The tax covers all incomes OF citi
zens Of the United States. whether liv
ing here or abroad; those of foreign
ers living m 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 II
personal property or real estate; from
interest. rent, dividends from securi
ties: for all business carried on fol
gain.
Firms, corporations, and the like
having the handling OF interest. rents
salaries. or other portions OF the in
come OF any citizen are compelled Il
deduct the tax for the individual ant
pay II to the government. The indi
yidual then will receive receip
showing he has paid his tax"