The Dermott news., 1913-10-09
MANY WILL PAY INCOME TAX
Estimated That 45o.ooO Persons Are Affected, and That $82, ,298, GOO Will
 Be Raised
INCOME TAX SCHEDULE.

s3,ooo to $2o.ooo ..........t per cent s2o.ooo to S5o.ooo .........2 per cent s5o.ooo 10 s75,ooo .........3 per cent s75,ooo 10 sIoo.oo0 .... 4 per cent stooooo to s2soooo. .....5 per cent s25o 900 to s5ooooo ...a6 per cent More than $500 900. .......7 per cent
 ashington.- n.--Accordiug to esti- mates completed by the treasury ex. ports. 425,o00 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 the tarir law in which the law Is em- bodied will not be signed until next week. the first returns do not have 10 be made to the internal revenue col lectors before March 1. 1914 But when the returns are made they will GOV CT the income Of citizens from March 1. l9is. to December 3l. and the first payment of tax will be for money re ceiyed during this period
 Every single person tcitizen or for eign residenu whose annual income exceeds 5000, and every married per son with an income above q 0o0. is expected to report his or her re- ceipts In detail 10 the government agents March 1 of each year.
 To Produce ss2. GOO GOO.
 The estimate completed indicates that the income tax will produce ss2.. 29S 900 from the 425000 persons taxed. To this will be added the s35o0o0 0o0 or more produced by the present cor. poration tax, which IS continued as part Of the law
 President Wilson. the federal judges of the Supreme court now holding of flee and employees of d state or any political subdivision thereof are the only persons specifically exempted -rom the tax by the ueW law The president and judges now in office Were made exempt to escape any Ques- tons of the coustitutionaHty ot the IaW. and their successors in office VII be compelled to pay the tax
 First Burden Is on Citizen.
 The general pgbHc ls expected to give c.os~ stGdy t3 the aeW law n the next Jaw mou.h5. es tGa frs. bur den Of the tax payment Tests ~tth the individual citizen. and his failure to report h.s income is punishable by fine
 It is admitted that when first re- turns arc made many taxable persons probably will escape payments, but with each year the goyernmeats lists of persons with taxable incomes will 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 hy the citizen. the other the returns hy corporations and other employers who pay their employees taxes at the source Under the law as t will he signed by President Wilson next week. every large company employing labor Will be compelled t6 repor, any reEu. lar salaries it pays iR excess ef the $S.00o figures and will pay the taXcs for lts employees and deduct the tax from their pay envelopes
 This paymeu, at rhe source wgH apply to salaries. rents interests, sot= 4lttes rartoer-ap profits and some other sources aC income. and persons receiving such .ncoues must 5e pro. pared to show taa' tAe money has paid is tax at .'s source.
 In figuring up his uet Income for the taxpayer. tho American business man. after deduc,tug g. GOO for him selt CT S4opo. it married. will have tho right io claim the following addi. tiooal exemptions
 Necessary expense of carrying on business. not including personal. living or family expenses
 Interest paid 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 preciation of property
 Dividends from companies whose in- comes have already been taxed