Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-04-08
Proposed Measure Provides
Tax of One Dollar on Every
One Hundred Dollars Earned
Above -Four Thousand,
MILLl0NAlRES LISTED
IN SEPARATE CLASS
Surlax Would Make Those
Who Receive Ten Hundred
Thousand Dollars or More
Share Heavier Burden,

Share Heavier Burden,
(ay Morninr journal special Leased wlre1
Washington, April Included In
the democratic tariff revision bill in
troduced Ia congress today Is an in
come tax section which would require
every resident of the United States
who earns more than $4,000 year TO
pay tax of ] per cent on his earn
ings In excess of the exemption.
This would not require the man who
earns only $4,000 TO pay a tax hut II
would demand that the individual who
earned S4,l0O for example. pay into
the government treasury an annual tax
OF / per cent on 500, or 81.
The bill also would provide higher
rates Of taxation for persons with
larger incomes. adding a surtax of /
per cent additional on earnings IN ex-
cess Of 10000. per cent addition
nj on earnings In excess OF $4,000.
and per cent additional on earn
ings in excess OF 100000.
Under the surtaX provisions the
man who earns only $4,000 would
pay to the government each year at
the rate OF per cent on $4,000
$4,000 exempt. or Sl60. II he earns
$4,000 he would pay per cent on
$4,000 sull and per cent on Sl0.-
600. thus making his annual tax $3.50.
The person with $4,000 income
would pay / per cent on $4,000 and 2
per cent on S30,000--a total tax Of
$3.50
The man with an income of $780,
000 would be required to pay / per
cent on $4,000, per cent on s30,-
000, and per cent on $4,000. bring
ing his total income tax to S2,260.
The individual with u net income Of
a million would pay thus. $2,260 on
his first 100000. and in addition he
would pay per cent on 100000.
which would bring his tax total to
s3S.260
The bin also would ro-enact the
present corporation tax law, imposing
a 1 per cent tax on earnings OF cor
pofatlons. stock companies, insur-
anee companies and the like, but It
would exempt partnerships. This Is
a flat tag. 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 under its pro-
visions the property and earnings in
this country Of persons who live
abroad
It Is estimated by members Of the
ways ana means committee that ap-
s1O0,000,O0O ia revenue
may bo derived from this new tax. in
eluding the corporation tax that
amount making up for the deficit in
revenues 10 be derived from imports
by virtue of tho greatly reduced tariff
rates and the transfer to the free list
Of articles that are classed as neces-
aaries Of living.
Incomes of taxable persons shall In |
lude gains, profits and income de-
-ivcd from salaries. wages, or com
for personal service of
whatever Kind and In whatever form |
paid or from profession, vocation,
business. trade, commerce or sales or
lcaings in property, also from inter
st. rent dividends, securities includ-
ng Income from property income
rom but not the value OF property ac-
Iuired by bequcat, device or descent.
md also proceeds of life insurance
,olcies paid upon death of persons
The bl allows as deductions In
net income all necessary
expenses actually incurred in carry
ng on any business. not including per-
onal living or family expenses, in
crest accrued and payable within the
ear by taxable person on indebted
ess an national state. county, school
nd municipal taxes. not including
zeal benefit taxes; losses incurred in
rade or from fires, storms or ship
,rcck not compensated by insurance
r. otherwlse debts actually ascer-
ained as worthless ana charged off;
ls0 reasonable allowance for wear
nd tear on property but no deduc-
ion will be allowed for expense OF
estoration or improvements made to
Increase property value.
il exccpts also. in computing net in
ome, amounts received as dividends
pom the stock of any corporation,
Dint stock company association or in (
urance company which Is taxable
pom it's net income under the corpor-
tion tax provision Of the bill.
The bin excludes the compensation
f the president of the United States
uring his term, judges Of the SUI /
rene and inferior courts of the {
nited states, and compensation Of all j
Ulcers and employees Of state or /
ny political sub division thereof. /
1t establishes q system OF collection
+ The tax at its source. requiring all 1
ersons, firms, partnerships, CONF i
anles, corporations, Joint stock eom- d
anias. associations or Insurance com Il
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