The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-09-30
INCOME TAX IS
EXPLAINED BY
C0RDELL HULL
Author of Provision in Tariff
Bill Gives Details of Plan
for Benefit of Individual
Citizens.
TREASURY EXPECTS
FLOOD OF QUERIES
Department Will Distribute
Blanks in Order to Get the
Necessary Information
Before Public.

w nSiii Wv, Sc't. 20 " uc
treasury department is preparing for a
flood Of questions about the new In
come tax, realizing that this feature
of the tariff bill about TO become law
strikes more intimately at the tax
paying citizen than do the indirect
taxes collected through the customs
duties.
One of the first steps taken to get
general information before the public
will be to distribute income tax blanks
through postoffices, internal revenue Of
fees and other federal agencies. How
ever the fact that he does not re,
ceive blank or a request to pay the
tax will not exempt taxable person
from the penalties of the law,
Representative Cordell Hull of Ten"
nessec, who drew the income tax pro-
vision Of the tariff bill, which will
soon become law, made public today
detailed explanation Of the tax plan,
as it will touch the individual citizen
Rules Will Be Clear.
"The treasury regulations soon to be
prepared will make clear to every tax
payer the requirements of the law and
its application to income derived from
the various kinds of business said
Mr.. Hull. "Any person who keeps ia
miliar with his business affairs during
the year should have no difficulty in
executing his tax return.
1.-THE income tax is divided into two
phases, the normal tax Of l per
cent on the whole income above $4,000
and the additional tax that begins with
an extra | per cent above $4,000
and is graduated to 6 per cent above
$500, 900. Wherever the income tax is
paid 'at the source by corporation
for its employees or in similar cases
only the ! per cent normal tax is
so paid. The individual has to pay
any additional tax himself. The pro-
vision Of the law requiring the tax to
be withheld at the source does not take
effect until November l, 1918,
Plan for First Year.
For the first year the citizen will
make return to the local Internal reve-
nue. collector before March l, 1914, as
to his earnings from March /. 1913, to
the end Of this year. The collector will
notify him June how much he owes. and
the tax must be paid by juno 30 After
next year the tax will apply on the full
calendar year.
IF tho income OF a person is under
$4,000. or II the tax On the same is with
held for payment at the source, or If the
same is to be paid elsewhere In the
United States. affidavit may be made to
such fact and thereupon no return Will
be required.
THE tax covers all incomes OF citizens
OF the United States. whether living here
or abroad; those of foreigners living in
tho United States. and the net Incomes
from property owned or business carried
on In the United States by persons liv-
ing abroad.
Net Income.
"The net income includes all Income
from salaries or any compensation for per-
sonal services; incomes from trades, pro-
YeSsionss business or commerce; from
sales or dealings In personal property or
real estate; from Interest, rent, dividends
from securities. for all business carried
on for gain.
"Bequests will not be considered In
come. nor will life insurance paid To n
beneficiary or returned to the insured
person as a 'paid-up' or Surrendered pol
ICY be taxable Interest on such prop
erty will be included as Income. how
ever
"The amount that may be deducted
from total income includes the cost OF
carrying on business, actual losses
depreciation allowances and rax-eXempt
or tax-paid money. Living expenses can
not be deducted nor can money spent for
permanent improvements to property
Duty of Taxpayer.
1.-The form that Is to be filled out by
the taxpayer will be drawn up soon bv
the collector OF Internal revenues The tax
payer Will have 10 give his gross revenue.
and then specify and claim the deduc-
tons TO which he feels entitled, Unless
mans income tax Is paid at source
he must hunt up tax blank, I'LL II out
and see that II finds It's way to the
proper official In his district before March |
/. 1914.
Firms, corporations and the like hav-
Ing the handling of interest, rents, SAL
aries or other portions OF the Income OF |
any citizen are compelled to deduct the |