Gilpin observer., 1913-10-09

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.
Interest from state municipal or
government bonds.
Must be Entire met Income"
1t is a clear provision Of the law,
however, that the taxable person must
make return to the internal revenue
collector for his entire net income"
and exemptions claimed under the law
must be submitted to the federal off,
GERS for them to determine upon their
RESPONSIVENESS or legality.
The amount of the income tax, as
finally agreed upon, follows:
From $4,000 to 100000. 1 per cent;
from 100000 to $4,000, 2 per cent;
from $4,000 to $4,000, 8 per cent:
from $4,000 to 100000, 4 per cent;
100000 to $25O.oo0, per cent; $780,
900 to 100000. per cent; above
$500,0o0. per cent
A single man with an income of
$26,00O, for example, would pay 1 per
cent on $4,000 and per cent on $500.
a total tax Of $270. II married, the
first tax Of l per cent. would apply to
only SIG 600 of the income
Ready to Answer Questions.
The treasury department is prepar-
Ing for flood of questions about the
new income tax, realizing that this
feature Of the tariff bill about to be-
come law strikes more intimately at
the tax paying citizen than do the
indirect taxes collected through the
customs duties.
Representative Cordell Hull Of Ten
nessee, who drew the income tax pro-
vision Of the tariff bill which will soon
become law, made public a detailed
explanation of the tax plan as 1t 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
Mr.. Hull said. ANY person who keeps
familiar with his business affairs, dur
ing the year should have no difficulty
In executing his tax return.
How Tax 10 Divided.
'The income tax is divided into two
nhasac tho normal 70 Of ono nor
cent. on the whole income above
$4,000, and the additional tax that be-
gins with an extra one per cent. above
$4,000 and is graduated to six per
cent above $500000. Wherever the
income tax is paid at the source by a
corporation for its employees or in simi-
lar cases, only the one per cent. nor
NAL tax is SO paid.
"The individual has to pay any a.
ditional tax himself. The provisions
Of the law requiring the tax to be
/ withheld at the source does not take
eject until November 1. 1918.
For the first year the citizen will
make return to the local internal reve-
nue. collector before March 1. 1914,
as to his earnings from March 1, 1913.
to the end of this year. The collector
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 person is under
| $4,000. or IL the tax upon 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.
Covers Incomes Of All Citizens.
The tax covers all incomes. of citi
zens of the United States, whether liv
ing here or abroad; those of foreign
ers 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
tlon for personal services; incomes
from trades. professions. business. OIL
commerce; from sales or dealings In
personal property or real estate: from
interest. rent. dividends from securi
ties: for all business carried on fol
gain.
Firms, corporations. and the like
having the handling Of interest, rents
salaries. or other portions of the in
come OF any citizen are compelled t.
deduct the tax for the individual ant
pay n to the government. The indi
vidual then will receive receip
showing he has paid his tax"