Arizona republican., 1913-09-28
According to Estimates by
Treasury Experts 425, 900
American Citizens Must
at Once Begin Keeping
Account Of Incomes
49,, 100000 TO
BE COLLECTED
Single Man Making Three
Thousand Yearly is Taxed
While Married Man Max
ing -Four Thousand is Em-
braced in the Law

WASHINGTON, Sept. 27.-Accord-
ing to estimates today by treasury
experts, four hundred and twenty
five thousand American citizens must
keep such accurate account of their
incomes this year that they will be
able to report to the income tax col
lector next spring exactly how much
they owe the government under the
new income tax law So far as 4
taxable American is concerned, the
income law practically is now in
force against him. The tariff bill in
which the law is embodied will not
be signed until next week and the
first returns will not have to be
made to the internal revenue col
lector before March 1, 1914 but
when the returns are made they
will cover the incomes of citizens
from March /, 1913 to December 81
and the first payment will be for
money received during this period
Every single person (citizen or for
egn residenD whose annual income
exceeds three thousand dollars and
every married person whose income
is above four thousand dollars is
expected to report his receipts in de-
tail to the government agents on
March 1st of each year. Estimates
completed today indicate the income
tax will produce $S2,29S,069 from the
425. 900 persons taxed. To this will
be added $35,000.000 produced by the
present corporation tax which is con-
tinued as a part of the law.
The general public is expected to
give close study to the law within
the next few months. Anyone fail
ing to report is punishable by
fine. It is admitted that when the
first returns are made many tax
able persons probably viii escape
payment: but with each year. the
governments list of persons with
taxable incomes will be made COM
plete.
Two primary methods of collecting
the tax are contained in the law. one
is the individual return made by the
citizen. the other the returns BY cor
porations and other employers VINO /
pav their employees taxes at the
source" Under the law as it VIII
be signed BY President Wilson next
week. every large company employ
ing labor will be compelled to re-
mort any regular salaries it pays IN
excess of the $4,000 figures and VIII
nav the taxes for it's employees ana
deduct the tax from their pay en-
velopes.
This payment at the sources VIII
apply to salaries, rent, interest, roy
alties, partnership profits and some
other sources of income and persons
receiving such incomes must be pre-
pared to show that the money mas
paid its tax at. it's source.
In figuring up his net income for
the tax collector, the American busi-
ness man. after deducting $4,000 for
himself or $4,000 if married will have
the right to claim these additional
exemptions.
Necessary expenses of carrying on
business, not including PERSONAL HV-
ing or family expenses.
Interest paid on 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 dur
ing the year.
reasonable allowance for the de-
probation of property.
Dividends from the company's IN
comes of which has already been
taxed
interest from state, municipal or
government bonds.
It is a clear provision Of the ia"
however. that the taxable person
must make a return to the internal
revenue collector for his entire net
income" and exemptions claimed un-
der the law. must be submitted 70 the
federal officers for them to determine
upon their reasonableness or legailty.
The amount of the income tax "9
finally agreed upon, follows:
From $4,000 to $4,000, l per cent
from $4,000 to $4,000, per cent
$50. 900 to$75000. 3 per cent, $lo'o
0oo 70 100000. per cent; 100000
- $3.50 900 5 per cent; $259,t0o ito
$500 900. per cent: above 100000 |
z per cent.