The Richfield recorder. (Richfield, Idaho) 1909-1931, 1913-10-09

or family expenses.
Interest paid out of Indebtedness.
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 off during
the year.
A rearo enable allowance for the de
probation of property.
Dividends from companies whose in
comes have already teen taxed.
Interest from state, municipal or
government bonds.
Must be Entire "Net Income"
It is a clear provision of the law,
however, that the taxable person must
make a 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
reasonableness or legality.
The amount Of the income tax, as
finally agreed upon, follows
From $4,000 to $4,000, 1 per cent;
from $4,000 to $4,000, per cent;
from $4,000 to $4,000, per cent;
from $4,000 to 100000, per cent;
100000 to $250,0OO, 5 per cent; $780,
00O to 100000. per cent; above
100000, per cent.
A single man with an income of
$4,000, for example, would pay per
cent on $4,000 and per cent on $500,
total tax of 500 If married, the
first tax Of 1 per cent. would apply to
only $4,000 of the income.
Ready to Answer Questions.
The treasury department is prepar-
ing for a food 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
One CT the first steps taken to get
general information before the public
will be to distribute income tax blanks
through postoffices, internal revenue
officers, and other federal agencies.
However, the fact that ne does not re-
ceife a blank or request to pay the
tax will not exempt taxable person
from the penalties Of the law.
Representative Cordell Hull of Ten
nessee, who drew the income tax pro-
vision of the tariff bill which will soon
become law, made public detailed
explanation of the tax plan as it 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
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 Is Divided.
The income tax is divided into two
phases, the normal tax of one per
cent on the whole income above
5000, and the additional tax that be-
gins with an extra one per cent. above |
$40, 600 and is graduated to six per
cent. above 100000 Wherever the
income tax is paid at the source by a
corporation for it's employees or in simi- !
lar cases, only the one per cent. nor
NAL tax is so paid
THE individual has to pay any a
aidcnal tax himself. The provisions |
Of the law requiring the tax to be
at the source does not take
effect until November 1, 1913
For the first year the citizen will |
make return to the local internal reve-
lue collector before March 1, 1914,
Is to his earnings from March I, 1913,
o the end of this year. The collector
sill notify him June / how much
he owes and the tax must be paid
by June so. After next year the tax
Kill apply on the fun calendar year
"If the income OF person is under
5000, or if the tax upon same is
for payment at the source.
" if the same is TO be paid elsewhere
n the United States, affidavit may be
made to such fact and thereupon no
eturn viii be required.
Covers Incomes OF All Citizens.
The tax covers all incomes CT citi-
ems CT the United States, whether iiv-
ng here or abroad; chose OF foreign
RS living in the United States. and
he net incomes from property owned
r business carried on in the United
states by persons living abroad
THE net income includes all in
ONE from salaries or any compensa
ion for personal services; incomes
rom trades, professions, business, or
ommerce; from sales or dealings in
ersonal property or real estate; from
interest, rent, dividends from securi-
les; for all business carried on for
ain.
requests will not be considered in
ONE, nor will life insurance paid to
beneficiary or returned to the in
ured person as paid up or sur
andered policy be taxable Interest
n such property will be included as
lcome, however.
THE amount that may be deducted
ON total income includes the cost