Mountain advocate. (Barbourville, Ky.) 1904-1935, 1913-10-03
Will EXPLAIN TAX.
TREASURY DEPARTMENT TO GIVE
INFORMATION OF THE NEW
INCOME LAW.
HULL EXPLAINS OPERATION
'.sntstlyo Who Drew Measure
Those Familiar With Their
N Business Can Execute Return
Very Quickly.

Washington, Oct 1.-The new In
come tax will bring forth many In
quiries and the treasury department
is preparing to answer them.
one OF the first steps taken to get
general information before the public
will be TO distribute income tar
blanks through post Offices. internal
revenue officers and other federal
agencies.
Representative Cordell Hull OF Ten
nessee, who drew the income tax
provision Of the tariff bill, made pub
lie on Monday a detailed explanation
OF the tax plan as IL will touch the
individual citizen.
''The treasury regulations soon to
be prepared will make clear to every
taxpayer the requirements Of the law
and its application to income derived
from the various kinds of business"
said Mr.. Hull ANY person who
keeps familiar with his business af-
fairs during the year should have no
dificulty in executing his tax return.
'The income tax is divided into tRo
phases, the normal tax Of one per
cent on the whole income above 3d.
900 and the additional tax that begins
with an extra one per cent. above
$4,000 and. is graduated to six per
cent above 100000. Wherever the
income tax is paid at the source by
a corporation for its employees or in
similar cases, only the one per cent.
normal tax is so paid. The individual
has to pay any additional tax him
self The provisions OF the law re-
Quiring the tax to be withheld at the
source does not take effect until No
vember 1, 1918.
For the first year the citizen will
make return.to the local internal rev.
enue collector before March 1, 1914,
as to his earnings from March l, 1918,
to the end OF this year. The collec-
tor will notify him June 1 how much
he owes. and the tax must be paid by
June 80. After next year the tax will
apply on the full calendar year.
IF the income Of a person is under
$1,000 or IL the tax upon the same is
withheld for payment at the source,
or II 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.
..,r,,. -. "--ars all incomes ~ ~'t'
zens Of the United States whether
living here or abroad; those of for
eigners living in the United States
and the net incomes from property
owned or business carried on in the
United States by persons living
abroad.
The net income includes all In
come from salaries or any compensa-
tion for personal services; incomes
from trades. professions. business or
commerce; from sales or dealings in
personal property or real estate; from
interest, rent. dividends from secur-
tiles for all business carried on for
gain.
Requests will not be considered in
come. nor will life insurance paid to
beneficiary or returned to the IN
sured person as a paid up or sur
rendered policy be taxable. Interest
in such property will be included as
income. however.
The amount that may be deducted
from a total income includes the cost
OF carrying on business. actual losses,
depreciation allowances and tax ex.
empt or tar paid money. Living ex-
penses cannot be deducted nor can
money spent for permanent improve
ments TO property.
Firms. corporations and the like
having the handling Of interest. rents,
salaries or other portions OF the In
come OF any citizen are compelled to
deduct the tax for the individual and
pay It to the government. The indi.
vidual then will receive a receipt
allowing he has paid his tar"