Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-04-17
EXPLAINS
THE INCOME TAX
Believes It Will Affect More Than
100000 Persons and Net
$S0,00O,OO0.

Washington, April 13.-Tho author Of
the income tax that seems sure to be i'm
posed on the people Of tho United states
is Congressman Cordell Hull of Tennessee.
| Here is the way tho author outlines the
effect upon the average citizen:
First, estimate that more than 900,
600 people will contribute to the tax.
About 100000 will pay the normal tax.
that. one per cent. on incomes In excess
OF $4,000 per year md loss than 10000
| per year The number of contributors 10
the higher tax for incomes more than
! 500 900 per year ] cannot even rucs.
Naturally. the number will he relatively
small, but there Is so much wealth widely
scattered through tho United States that.
accustomed MS We are to reports of rich
men, We may be surprised at the returns
Let me make clear at the beginning
certain definitions. The language OF the
bill refers to the normal tax and to the
additional tax The normal tax TO the
minimum rnte, namely one per cent. and
| applies to all Incomes amounting to more
than $4,000 per year, subject to certain
! deductions
The additional or supertax is the
higher rate that applies to income,
amounting TO more than 100000 per ycnr.
Tho bill provides FOR total Of two per
| cent tax on incomes between 800. 900 and
$4,000 per year; three per cent. on in
comes between $4,000 and 100000 per
more than 100000 per year.
NORMAL AND ADDITIONAL TAN.
There are certain Distinction. between
the normal tax and the additional tax
which should be- kept In mind Provision
is made for certain deductions Of income
| for the normal tax, but the bill provides
that every person subject 10 this add
| tional Tux shall, for the purpose Of 1t.
assessment and collection. make n persona
return OF his entire net income from al
| sources.
| Now, assuming that the bill become.
a law, and think there Is no doubt abou
It, here Is what will happen to concern
tho average citizen amendnblc to taxation
! Between January and March I. 1914
n report must he made to the collectors o
| internal revenue in the several districts o
individual and corporation income for thu
calendar year 1913. The collector vii
have prepared in advance n printed form
| to be filled ont and he will send this Il
| MS many corpora lions and business firm
in hi, district as he has reason to believe
arc amendahle to the tax
ALSO he will send blanks to executors
| guardians. trustees. agents, and all per
| sons having control or disposition Of gains
| profits and incomes. Individuals suppose
70 have incomes will he put on the list an,
| blanks sent to them
These blank forms will have explicit
| directions printed upon them so that tn
recipients will know Just what is required
| For example. corporations and bushes
firms will be required to report their ne
earnings for tho preceding year. on whc
must be paid INK Of ono per cent Til
| law prescribes how. these net earning
are to he computed.
SINGLE PAYMENTS AT SOURCE.
This payment by corporations exempt
stockholders OF such corporations fror
having TO pay the normal tax again o.
dividends derived from capital stock Thu
a single payment at the source serve
the purpose Of the tax moro erectivcl
than TO attempt collection from the thor
sands Of stockholders after dividends hav
been distributed.
Guardians, trustees. agents and tho Xix
are directed to withhold from trust fund
and accounts in their charge the tax in