The Bridgeport evening farmer., 1913-11-14
BOndhOlderS
Can't Dodge
Income Tax
Landlords viii Find Evasion
A Most Difficult
Task

Washington, D. C., Nov. 14-When
the treasury officials began making
regulations for the collection of the
income tax at the source they framed
up'' one against the tbloated bond
holder" which puts him absolutely at
the mercy of the tax collector. There
is not q chance in the world for the
bondholder to get his interest with out
disclosing the value of his holdings
and it will be a sorry day for the per-
sons who have been pleading poverty
If the local assessors ever get a chance
to go over the income tax books that
Uncle Sam is going to keep
There is just one way for persons
who have capital invested to go on
conceaIfng their wealth and that is to
own stocks. The income tax law pro-
vides that dividends from stock are
exempt from collection at the source
and the person who is anxious to keep
his name off the income tax boks can
do so by selling his bonds and rein
vestfng the proeeedszin dividend pay
ing stocks
Unless the treasury officials miss
their guess there is going to be slump
in the bond market and a consequent
boom in the stock market, after the
income tax really gets to working and
the people begin to find out that their
dividend checks come along without
any deduction for the income tax,
bond coupons every time they are
cashed- ttt II
OF course, this applies only to those
persons whose incomes are over So, 600
IL unmarried and more than $4,000 if
married and living with their wives.
It viii apply, however, to the unnar-
rfed person who has salary of $4,000
and an added income of a thousand or
two from his bond, Investments, about
which he may. brag to his friends bur
which he is careful enough to conceal
from the assessor of personal prop
erty. -t
Dividends from stock are exempt
from collection of the income tax at
the source because the corporation it.
self is taxed on the net income out of
which the dividends are paid, but the
owner OF these securities will not be
greatly exercised over the payment Of
the tax by the corporation, SO long as
he gets his per cent, whereas the
owner OF q per cent bond is liable
to look upon It as q personal grievance
IL he has 1 per cent. of that income
taken away from him when he cashes
in his coupon
There is one thing about the income
tax, however, that will appeal to that
great GLASS of persons known as ten
ants" In the income tax he will have
a chance to get back at the iulper1olis
landlord who from time in1nleihorfA1
has had everything his own way.
OF course, this applies only to ten
ants who pay $4,000 or more a year
rent, but undoubtedly it will be some
satisfaction to such persons to deduct
the normal income tax from their
monthly check or else to have the
landlord come crawling to them to
make afadavit that he is a poor man
and therefore exempt from the pay
ment of the tax
There is a large class of persons on
whose honor Uncle sam will have to
depend for their income tax returns.
The law and the treasury regulations
have flxed It so that the sa1aried man,
The landlord, the bondhoIder and the
mortgage holder cannot escape the
payment Of the tax If they wished to,
but farmers, merchants, agents to work
on commission, lawyers, doctors, au-
thorS and investors and professional
have to make their own returns to the
tax collector, as the Treasury Depart
ment viii have no way Of checking up
them at the source Of the income.
For instance, doctor may receive a
fee Of 5000 for performing an opera
ton upon a wealthy patient but the
patient cannot get back at the doctor
by deducting the tax. The same is
true Of the lawyer who gets a special
retainer fee OF $1,000, although if he is
under contract to receive a retaining
fee Of 5000 per annum he can claim