The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-09-24

- LNS 3N" III AN ol4~
To provide for a deficiency in revenue
which will undoubtedly result from 20.
per cent cut in the tariff, the democrat
ic majority in congress has enacted
the third federal income tax.
his measure which has beer agreed
upon in its various provisions by the
committee of conferees provides that
all incomes exceeding $4,000 will be
taxed l per cent. Incomes are defined
as the net profits from. business, inter-
est on money invested, or salary re-
ceived for services. In computing the
business income permanent invest
ments, such as improvements, are not
included in the expense item. Nor is
the cost of living of an individual or
any of his ordinary, expenses exempt.
All taxes paid the state, county, school
or nation are among the exemptions.
In addition to the l per cent there
are various other additional rates,
which together with it. make the fol-
lowing schedule:
From $4,000 to $4,000, 1 per cent.
From $40, 900 to $50, 900, 2 per cent.
From $780, 0 to $4,000, 3 per cent.
From $4,000 to 500, 900, 4 per cent.
From 100000 to $500 5 per cent.
From $250,000 to $500, 000, 6 per cent,
and all incomes above $500, 900, Z per
cent.
This tax applies to the income from.
but not the value Of property &C
Quired by gift, bequest, devise or
descent. Neither is it applicable to
proceeds of life insurance policies to
the insured or to his heirs at death.
In addition to the $4,000 exemption
there is an additional exemption of ST.
600 to married persons living with
husband or wife, also $500 for each
minor child, living with and dependent
Upon the parent, but the total exerap-
ton on account of children shall not
exceed $1,000. Such exemption to
operate only in case Of one parent,
where both parents have an independ-
ent income. So under the law
single person with an income in excess
of 49, 900 will be taxed; a married per-
son, but without children, will have
a $4,000 exemption and a married per-
son with two or more children a S.
900 exemption.
In computing net income under this
law the interest upon any obligations
of a state or any subdivision, and
upon the obligations Of. theS United
States Possessions; also the salary Of,
the present president Of the United
States for the term for which he has
been elected, and the Judges of the
supreme court and inferior courts of
the United States, now in Office, and
the salaries of employees Of the state
or any political subdivision, except
ing cases where the salaries are paid
by the government of the United
States, are exempt. This. of course,
eXempts all state officials, as well as
county and city officials, but federal
officials other that the president II
judges Of the supreme court for the
present terms are not exempt.
y The first tax will be computed on
the incomes beginning March 1 last
and running until Dec. 81 next in
elusive. This Is done in order that
the tax nay be computed on March I
each year.
Hereafter on March 1 beginning
March /, 1910 every person having
an income Of $4,000 or more for the
year which has just preceded must
make a statement, under oath, to the
collector of internal revenue for the
district in which such person resides,
or has his principal place Of business.
setting forth specifically the gross
amount of income from all separate
sources and his total income. deduct
ing the items Of expense allowable,
| and shall render to UGH official a re-
turn of his net income. If the collect
or has reason to believe that the re-
turn Is not correct, he shall serve no
t1ce on the person making 1t to show
cause why 1t should not be increased
and upon proof that his amount is un-
derstated, may increase it accordingly.
The case may be appealed to the COM
missioner Of internal revenue.
All assessments will be made by the
commissioner of internal revenue and
all persons notified of the amounts for
which they are respectively liable on
or before June l. The assessment
must be paid ON or before June 8. If
it is unpaid after June 80 and after
ten days notice a penalty of s per
cent will be added and interest will be
month until such tax is paid.
This income may be collected at the
| source. That is if ones income in ex.
cess of $4,000 O. other legal exemp-
tons are in the nature of interest on
bonds, the tax will be deducted be-
fore the dividends are paid.
The exemptions are very broad, The
| provisions of the act do not apply co
labor, agricultural, horticultural or
CARNATIONS, o to mutual savings
banks not having capital stock repre-
scented by shares. fraternal societies,
domestic building and loan associa-
lions. nor to cemetery companies. nor
to any organization operated exclus-
lively for religious, charitable or scien-
tific purposes, nor to business leagues.
chambers of commerce, nor boards OF
trade not organized for profit, nor any
civic league not organized for profit.
1t will also behoove the citizen to
make his statement to the internal
revenue collector on March /, other
| wise he only adds so per cent to the.
regular tax, and If he renders a false
| or fraudulent return, 100 per cent is
added.