Judsonia weekly advance., 1913-10-08


 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 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"
 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 met income" and exemptions claimed under the law must be submitted to the federal off, cers for them to determine upon their reasonableness or legality.
 The amount of the income tax, az finally agreed upon, follows:
 From s3,000 to $2O,00o, l per cent; from S20,000 to $50,000, per cent; from $50.000 to $75,OOO, per cent; from $75,000 to $1o0,O00, 4 per cent; s1O0,O00 to s250,O00, 5 per cent; $250,- 900 to $500,000, per cent; above S500,000, per cent.
 A single man with an income of $25,000, for example, would pay per cent on $17,000 and per cent on $500, a total tax of $270 If married, the first tax of 1 per cent. would apply to only $16,000 of the income.
 Ready to Answer Questions.
 The treasury department is prepar- ing for a 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 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" MT. 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 $3,000, and the additional tax that be- gins with an extra one per cent above s20,000 and is graduated to six per cent above S500,000. Wherever the income tax is paid at the source by corporation for it's employees or in simi- lar cases, only the one per cent. nor nal tax is so paid.
 "rhe individual has to pay any B. ditional tax himself. The provisions of the law requiring the tax to be withheld at the source does not take effect until November l, 1915
 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 30. After next year the tax will apply on the full calendar year
 If the income of person is under $3,000, or if the tax upon same Is withheld for payment at the source, or if 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 CTS 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 ip- come from salaries or any compensa ton for personal services; incomes from trades, professions, business, CT commerce. from sales or dealings in personal property or real estate; from interest, rent, dividends from securi. ties; for all business carried on for 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 to deduct the tax for the individual and pay it to the government. The indi- vidual then will receive 8 receipt showing he has maid his tay"