River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1913-11-06
INCOME TAX LAW
IS NOW EFFECTIVE
WASHINGTON TREASURY OFF,
GALS RECEIVE THOUSANDS
OF INQUIRIES.
EVEN WALL STREET AT SEA
Claims Not to Know How Collections
Are to BE Made-Expresses Con-
fidence All Will Work Out
Well in End.

Washington, Nov. 3.-Although mill
ions are expected to flow into the
public treasury through the opera
ton of the income tax law which now
becomes operative, much confusion
prevails throughout the country as to
how and at what sources the tax is
to be collected. Reports reached
men professed to be hope1essly at
sea as to the intent and scope of the
law.
While it is recognized here that
the income tax is the most revolu-
tionary power conferred in the Ameri-
can government since it's foundation,
optfmists are predominant who say
that all will be working well in q
few weeks.
Optimists Are Predominant.
Although an income tax has been
agitated for many years, and it's ex-
istence was assured by an amend
ment to the constitution agreed to by
the necessary number of states early
last spring, it's collection by a gov
eminent which has not tried it will
strain the resources of the fertile
minds in the treasury department and
will be accompanied, it is not doubt
ed here, with a thousand complica-
tons not now foreseen.
Ever since President Wilson signed
the tariff bill with it's income tax pro-
vision, early in the present month"; the
machinery of the treasury department
has been at work upon the regulations
that are to govern the collection of
the tax. 1t has been q task that has
kept Assistant Secretary Williams,
Deputy Commissioner of Internal Rev.
enue Speer and other officials con-
stantly at work and the end is not
In sight.
Many Inquiries Received.
Mr. Williams said that the regula-
tons of the department were not diff
icult to understand, but in this some
other officials in the department do
not agree. Thousands of letters and
kilograms, bringing up for settlement
points in the new law, have poured
into the department.
/ They have come from every con-
ceivable source and added to the labor
Of making regulations, have made the
task Of the experts one not to be en-
We'd.
| No one in the treasury department
believes that the regulations SO far
formulated are perfect, but they will
stand until some one proves that they
should be changed, and officials are
not inclined to believe that expert
lawyers employed by big corporations
particularly concerned with collection
"at the source" of income on bonds,
mortgages, salaries, ETC., have failed
to understand them.
| Since the administration began
framing an income tax law the talk
has gone the rounds in Washington
that it would lead to many fights in
the courts, and as the tariff bill pro-
crossed through the senate, many a
senator quietly expressed the view
that every line Of the income tax pro-
vision was subject for lawsuit.
Business to Get Money.
With the lawsuits the treasury de-
partment has little concern. 1t is not
looking for them; it's business is to
go out and get the money, and that is
what it is trying to do. Officials be-
lieve that the regulations they have
put out are framed, not with an idea
Of causing trouble to those who must
pay, but in the only way they could
be framed to safeguard the govern
ment's interest. The man in the
street who knows he makes more
than $4,000 year and who is per-
sonally responsible for his share of
the tax, does not need to begin wor-
rying about his payment for the pres
snt. The operation of the law af-
tects only banks, corporations and
others responsible for payment on
bonds, mortgages, salaries, etc.
For such part as they are bound by
the law they must withhold Eat the
source" The amounts SO withheld are
not payable Immediately to the treas
1ry and the money from the tax will
not begin owing into the treasury
vaults for mony months.
The tax for 1913 is to be collected
from March 1, shortly after the consti-
/ !utional amendment was ratified, un-
ill Dec 81. Withholding agents, how
ever, must begin deducting the nor
NAL tax of one per cent at the source
now, Withholding it for November and
December.