The Dermott news., 1913-10-09
Interest from state municipal 0, government bonds
 Must be Entire Met Income"


 It Is a clear provisicl 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- cers for them to determine upon their reasonableness or legality.
 The amount of the income tax, as finally agreed upon, follows:
 From s3.0O0 to s20.000, 1 per cent: from s20000 to s50.o00. per cent; from s50.000 to s75,000. per cent; from s75 900 to s100,Q00, per cent s1oO 900 10 s250,0O0. per cent, s25O,- GOO to $500 900. per cent; above s500,000. ' per cent
 A single man with an income of $25000. for example, would pay l per cent on ST 000 and per cent on $500, total tax of s270 If married. the first tax of per cent. would apply to only sl6,0O0 of the income
 Ready to Answer Questions.
 The treasury department is prepar ing for q flood of questions about the now iiANCA44V AtAA A'aAlNAIb that NAAS 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 Gordell Hull of Ten nessee, who drew the income tax pro vision Of the tariff bill which Will soon harnyya lu.,x do I.taflaI explanation of the tax plan as 1t will touch the individual citizen.
 The treasury regulations soon to ! bs prepared will make clear to every taxpayer the requirements Of the law and its application to income derived from the various kinds Of business. , Mir 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 33.000. and the additional tax that be gins with an extra one per cent above s20,000 and Is graduated to six per cent above s500ooo 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 maj tax Is so paid
 The individual has 10 pay any a ditional tax himself The provisions of the law requiring the tax to be withheld al the source does not take effect until November l. l913
 For the first year the citizen will make return ta the local internal reve- nue collector before March |. 1914. as to his earnings from March 1. 1913. to the end of thIs year. The collector will notify hun June l how much he owes and the tax must be paid by June 30 After next year the tax will apply on the fall calendar year
 "If the income of q person IS under s3.0uo or f fhe faN upon same is withheld for payment al the source CT If tAe same Is Co be paid elsew here in the tinted States. affidavit may be made to such fact and thereupou no return VII, he required
 covers incomes or All AltiZcnS.
 The tax covers all incomes of citi- zons Of rhc tinted States, whether hv- ms here or abroad those Of foreign. CTS h,.nE n the Uuited States. and the not incomes from property owned or business carried on In the United States hy persons living abroad
 The uet Income includes all in come from salaries or any compensa. ton Tor personal services; incomes t~or trades. professions business. or commerce from sales or dealings in personal property or real estate from interest, rent dividends from seCuri- ties. for al business carried on for gain
 Requests will not be considered fn- come. nor w.ll life insurance paid to a beneficiary or returned to the in surcd person as pad up or sur. rendered policy b. taxable. Interest on such property NH be included as income however
 The amour, taat may he deducted from total income includes the cost ut Carr,.uE on business. actual losses, depreciation allowances. and taN ex emp, or lax paid money Living ox- peusts cannot be deducted nor can money spent Tor permanent improve ments 10 property
 Forms 10 Be Ready Soon.
 The form that Is to be filled out by the taxpayer vii be drawn up soon by the commissioner of internal revenue The taxpayer will have to give his gross revenue and then speci- Y and claim the deductions to which he feels entitled.
 Unless a mans income tax Is paid al the source he must hunt up a tax blank. fill 1t out. and see that it finds its way 70 the proper federal official in his district before March l. 1914.
 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