The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1913-10-09
MANY WILL PAY INCOME TAX
Estimated That $4,000 Persons Are
Affected, and That sa2,2ss,ooo VIII
30 Raised.
INCOME TAX SCHEDULE.


MISUNDERSTANDING to esti-
mates completed by the treasury ex-
perts. $4,000 American citizens must
keep such accurate account Of their
incomes this year that they will be
able to report to the income tax col
lector next spring exactly how much
they owe the government under the
new income tax law.
So far as the taxable American is
concerned, the income tax law Is now
practically In force against him. While
tho tariff law In which the law is en-
bodied will not be signed until next
week. the first returns do not have to
be made to tho internal revenue col
lectors before March /, 1914. But when
the returns are made they will COW
er the income OF citizens from March
/, 1918, to December 81. and the first
payment OF tax will be for money re-
ceived during this period.
Every single person (cltlzen or for
eign resident) whose annual income
exceeds $4,000. and every married per
son with an income above $4,000, IL
expected to report his or her re-
ceipts in detail to the government
agents March 1 OF each year.
To Produce So, 200, 600.
The estimate completed indicates
that the income tax will produce sS2,-
29S, 900 from the $4,000 persons taxed.
To this will be added the $35.000,o00
OF more produced by the present cor
poration tax, whi6S Is continued rs
part OF the law.
President Wilson, the federal judges
OF the Supreme court now holding Of
nee and employees 'of state or any
political subdivision thereof" are the
only persons specifically exempted
from the tax by the new law. The
president and judges now in Office
were made exempt to escape any ques-
tions OF the eonstitutionality of the
law, and their successors in Office win
be compelled to pay the tax.
First Burden lie on Citizen.
The general public ia expected to
give close study to the new law in
the next few months, as the first bur-
den OF tho tax payment rests with the
individual citizen, and his failure to
report his income ia punishable by
fine.
1t is admitted that when first re-
turns are made many taxable persons
probably will escape payments, but
with each year the governments lists
OF persons with taxable incomes win
be made more nearly complete.
Methods Of Collecting Tax.
Two primary methods of collecting
the tax are contained in the law. One
is that the individual return made BY
the citizen; the other the returns by
corporations and other employers who
pay their employees taxes at the
source" Under tho law as It will be
signed by President Wilson next week,
every large company employing labor
will be compelled to report any regu-
lar salaries It pays In excess OF the
$4,000 figureB, and will pay the taxes
for It's employees and deducs the tax
from their pay envelopes.
This payment at the source" will
apply to salaries, rents. interests, roy.
alt!es. partnership profits and some
other sources of income. and persons
receiving such incomes must be pre-
pared to show that the money has
paid its tax at Its source.
In figuring up his net income for
the taxpayer. the American business
man, after deducting $4,000 for him
self, or $4,000. II married, will have
the right to claim the following add
tional exemptions:
Necessary expense of carrying on
business, not including personal, living
or family expenses.
Interest psid out Of Indebtedness.
National, state. county, school or
municipal 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 In
comes have already been taxed.
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