The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1913-06-27


sion of the Underwood bill, as
stands, is a decidedly complex bit @
Legislation, not entirely ineligible t
the average reader, and not readil
digested by those whose time is short
In order to make clear the provisions
purposes, and effects of this new tax
Representative Hull, author of the in
come tax provision, has prepared
digest which sets forth, in plain Ian
guage, the purport and scope of tn,
1 income tax section. The synopsis Il
i as follows:
| Income Tax-Personal.
Income Covered.
1 Those Of all citizens of the United
| States residing, at home or abroad.
Those of all persons residing in the
United States although not citizen:
thereof.
All net incomes from property
owned and from every business, trade
or profession carried on in the United
States by persons residing elsewhere
Normal Tax.
One per cent per annum upon the
amount Of net income over $4,000.
Additional Tax.
One per cent per annum upon the
total amount of net income from all
sources over $4,000, and not over
$4,000 per annum.
Two per cent per annum upon the
amount of net income over $4,000 and
not over 100000.
Three per cent per annum upon the
amount of net income over 100000
Net Income Includes.
All gains, profits and income de-
rived from salaries, wages or COM
pensation for personal services of any
kind and however paid
Professions or vocations.
Business, trade or commerce.
Sales or dealings in property, real
or personal, growing out of the own
ership or use of, or interest in prop
erty, real or personal.
Interest, rent, dividends or securi-
ties.
Transactions of any lawful business
carried on for gain or profit.
Gains or profits on incomes de-
rived from any source whatever.
Income, but not the value of prop
erty acquired by bequest, devise or de-
scent
Income, but not proceeds of life in
surance policies paid upon death.
Deductions Allowed.
Necessary expenses actually incur
red in carrying on any business.
All interest accrued and payable
within the year on Indebtedness.
All national, state, county, school
and municipal taxes.
Losses actually sustained during the
year, not compensated by insurance
or otherwise, arising from fire, storm
or shipwreck.
Debts actually ascertained to be
worthless and charged off during the
year.
A reasonable allowance for the eX-
haustiOn or wear and tear of prop
erty arising out of it's use or employ
ment in business.
All income the tax upon which has
been paid at the source.
Amounts received as dividends up
on the stock of any corporation, etc.,
which is taxed upon its net income.
Interest upon bonds and securities
guaranteed free from taxation.
Deductions Not Allowed.
All personal, living or family ex-
penses.
Taxes assessed against local ben
efits.
All expenses of restoring property
or making good the exhaustion there
of, for which an allowance has been
made.
Amounts paid for new buildings,
permanent improvements or better
ments made to increase the value of
any property or estate.
Exemptions.
Interest nnOn tbo 0hlipofjprc ~ q
state or any political subdivision
thereof.
Interest upon the obligations of the
United States the principal and inter-
est of which are now exempt from
federal taxation.
The compensation of the present
president during the term for which
he has been elected.
the supreme and inferior courts of
the United States now in office.
The compensation of all officers
and employees of a state or any poll
teal subdivision thereof.
Amount of Income Exempt.
Four thousand dollars shall be de-
Quoted from the net annual income.
as above ascertained, of each person.
be made from the aggregate income
of all members of family.
Family Consists of
One or both parents and one or
more minor children, or of husband
and wife.
Exemptions.
A wife living permanently apart
from her husband
Guardians are allowed to make de-
auctions in favor of each and every
ward when same are not comprised in
one family having joint property in
terests.
Time of Going Into Effect.
The tax shall be computed upon the
remainder of the said net income for
the year ending December 81, and for
each calendar year thereafter.
Return of Income.
A true and accurate return of all
net incomes of $4,000 or more shall be
made under oath or affirmation.
1t must be made to the collector of
internal revenue for the district in
which said person resides or has his