Clearwater Republican. [volume] (Orofino, Idaho) 1912-1922, 1913-10-03
NEW|NCOME TAXLAW
FIRST PAYMENT WILL BE FOR
MONEY RECEIVED BETWEEN
MARCH AND DECEMBER, 1918
HALF ANIuION PEOPLE MUST REPORT

Expects to Bring In $s2, 2os, 900 Year
Tax on $4,000 and Up-Minimum
for Married Men $4o0o-1oo
Pay on Over $1yooo,ooo
NEUTRALITY-SUSPICIOUS. to estimates
by treasury experts $4,000 American
residents must report to the income
tax collector next spring exactly how
much they owe the government under
the new income tax law.
The tariff bill, in which the law is
embodied. will be signed this week and
the first returns do not have to be
made to the internal revenue collect
ors before March l. 1914. But when
the returns are made they will cover
tn income of citizens from March /,
1918, to December 81, and the first pay.
ment Of tax will be for money received
during this period.
Every unmarried person (citizen or
foreign resident) whose annual income
exceeds $4,000 and every married per-
son with an income above $4,000 Is ex-
pected to report his or her receipts in
detail to the government agents March
l OF each year. The estimate just
completed indicates that the income
tax will produce $82.29S,000 from the
425,0O0 persons taxed. To this will
be added the $35.000.000 or more pro-
duced by the present corporation tax,
which is continued as part of the law.
President Wilson. the federal judges
Of the supreme court and inferior
courts now holding office and en-
ployes "of state or any political sub
division thereof are the only persons
specifically exempted from the tax by
the new law.
The president and judges now in Of
flee were made exempt to escape any
questions Of the constitutionality of
the nav and their SUCCESSORS in office
will be compelled to pay the tax.
Two Methods Of Collection.
Two primary methods Of collecting
the tax are contained in the law. One
is the individual return made by the
taxpayer; the other the returns by
corporations and other employers who
pay their employees taxes "at the
source"
Under the law, as 1t will be signed
by President Wilson, every large com
pany employing labor will be com
PEELED to report any regular salaries
1t pays In excessof the $500 figures
and will pay the taxes for It's employees
and deduct the tax from their pay en-
velopes.
This payment at the source" will
apply to salaries, rent, interest, roy
alties. partnership profits and some
other sources of income, and persons
receiving such incomes must be pre-
pared to show that the money has
been paid at its taxation source.
Exemptions Allowed.
In figuring up his net income fol
the taxpayer the American business
man, after deducting $4,000 for him
self or $4,000 Of married. will have The
right to claim the following additional
exemptions:
Necessary expenses Of carrying OF
business. not including personal, liv
ing or family expenses.
Interest paid out on Indebtedness.
National, state, county, school o.
municipal taxes paid within the year.
Trade losses, or storm or fire losses
not covered by insurance.
i Worthless debts charged off during
the year.
A reasonable allowance for the de
probation of property.
Dividends from companies, the In
come Of which has already been taxed
Interest from state. municipal O
government bonds.
It Is q clear provision of the Law
however, that the taxable person mus
make return to the internal revenu
collector for his "entire net income
and exemptions claimed under the Law
must be submitted to the federal off
GERS for them to determine upon thei
reasonableness or legality.
The Graduated Scale.
The amount Of the income tax a
finally agreed upon follows: Fror
$4,000 to 10000, 1 per cent; from $50
900 to $4,000, per cent; from $50
.. 5000 to $500. 8 per cent; $4,000 t
. 100000. 4 per cent; 100000 to $3.50
900. & per cent; $250.000 to $500. 900,
per cent; above 100000. Z per cent.
An unmarried man with an incom
Of $4,000, for example. would pay
. lper cent on 1000 and Z per cent o