The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-04-12
THE TAX ON INCOMES.
DEMOCRATS FRAME MEASURE.
TO SHIFT BURDEN FROM
POOR TO RICH.
Hesinction OF Tarin on Necessaries OF
Lifc I'm Order that Cost OF Living
May be Reduced will Create Deficit
In Federal Revenues and TO Make
Good the Loss The Incomes OF the
Rich VIII be Taxed.

the Democratic tariff revision bill in
troduced In congress today Is an in
come tax section, which would require
every resident of the United States
who earns more than $4,000 o. year
to pay n tax OF per cent on his
earnings In excess OF the exemption.
This would not require the man who
earns $4,000 TO pay.a tax. but 1t would
demand that the individual who earn
ed st,l00. for example. pay into the
government treasury an annual tax of
per cent OIL $780, or 81.
The fili also would provide higher
rates Of taxation for persons with
larger incomes. adding a sur-tax of
per cent additional on earnings in
excess OF 100000. per cent addi-
tional on earning In excess Of $50. 900
and s per cert additional on earnings
I'm excess of 500 600.
Under the sur-tax provisions the
man who earns only $4,000 would
pay to the government each year at
the rate or 1 per cent on $4,000
V4,0o0 exempU. or $50. II he earns
$4,000 he would pay per cent of
$4,000 stin and per cent on $4,000,
thus making his annual tax $3.50. The
person with a $4,000 income would
pay 1 per cent on $4,000, and 2 per
cent on 100000 total tax of s76O.
The man with an income of 100000
would be required to pay 1 per cent
on $4,000, per cent on $50, 900, and
per cent on $4,000, which would
be $500, bringing his total income
tar 10 $4,000. The individual with a
net ineome OF s1.00O.o0o would pay
f2.2eo on his first 100000, and in
addition he would, pay 4 per cent on
g&2eeseoo. which would bring his total
~ to sss,2s
1.-THE bill also would reenact the
pfesent corporation tax law, imposing
per cent tax on the earnings of
corporations. stock companies, insur-
ance companies and the like. but IL
would exempt partne ships. This Is
HAT rate. there being no graduated
scale as the earnings increase. The
Few changes from the present corpor-
alton tax act concern chiefly the time
OF making returns and the time for
collection. The bill also includes un-
der its provisions the property and
earnings In this country of persons
who live abroad.
IL Ia estimated by members of the
ways and means committee that ap-
proximately 100000. 900 in revenue
may be derived from this new tax,
including the corporation tax, that
amount making up for the deficit
oy virture OF the greatly reduced tariff
rates and the transfer to the free list
Of articles that are classed as neces-
saries OF living.
incoi ,es OF taxable persons shall in
esude gains. profits and incomes de-
rived from salaries. wages or COM
pensation for personal service OF
whatever Kind and In whatever form
paid, or from professions, voca-
uons. businesses. trade. commerce or
sales. or dealings in property, also
from interest. rent, dividends, securi-
ties. including income from property,
income from but not the value of
property acquired by bequest, and also
proceeds OF life insurance policies
paid upon death OF persons insured.
The bill allows as deductions in
computing net incomes all necessary
expenses actually incurred in carrying
on any business. not including per
sonal living or family expenses; inter-
est accrued and payable within the
year by a taxable person on indebted
ness; all national. state. county. school
and municipal taxes. rot including
local benefit taxes; losses incurred i'm
trades or from fire. storms or ship
shipwrecks not compensated by in
surance or otherwise; debts, actually
ascertained as worthless and charged
on; alO reasonable allowance for
wear and tear of property. but no de-
duction Will he allowed for expense
of restoration or Improvement made
to increase property value.
IL excepts also. In computing
incomes. amounts received as divi-
dends upon the stock of any corpor-
alton. joint stock company. associa-
tion or insurance company which II
taxable upon its net income under the
corporation tax provision Of the bin.
The bill excludes the compensation
of the president of the United States
during his term; judges Of the su-
prcme and inferior courts Of the
United States. and compensation of all