New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-30
Mr.. Hull Explains the Provisions
of the New Law in Non
Technical Language.
HOW INCOMES ARE COVERED
Every Taxable Person Must oo-
tain and Fill Out a Blank Re-
turn Before March l and
Pay by June 80.
FROM The Tribune Bureau. J

,r..h;,oton Sept. 29.--ln a statement
aoeigned for the layman and INTENDED 10
-, tho income tax section of the tariH
bin Of it's technical language represent
alive Corden Hull, who drafted the sec
ton. tried tonight TO make pam no"
the new tax will apply 10 the 4SoVO ciu-
gems Of the United States who. the treas
urv Department estimates. must make re-
turns under IT,
In exclamation of this human interest
feature Of the new tariff bill, Mr.. Hun
says.
Under the new income tax law every
citizen whose net income exceeds 5000
will be required TO pay a normal tax OF
l6 cents upon such excess. However. for
the year 1918 the tax will be measured
ny the net income accruing from March
/ 10 December 81.
Every taxable person will be furnished
a blank return by the district collector,
or A deputy. and will be required TO fill
IT out and return il TO the Office Of the
collector of the district in which he re-
sides between January and March /, 1914.
"If any taxpayer should fail TO receive
such blank he will be required, under
penalty, to apply for a blank return.
Blanks will probably be on deposit with
most postmasters for the convenience OF
the taxpayer.
Must Pay by June 30.
THE statutory exemption Of 5000 is
allowed for personal living or family ex
penses. However, this and other gross
income for which special deductions are
allowed must be embraced in the return
OF gross income. and the Commissioner OF
Internal Revenue will make these deduc-
lions when he assesses and computes the
tax. Each taxpayer will be notified OF
the amount OF tax due by June !, 1914,
and will be required to make payment by
June 80 1914.
The normal tax upon individuals Is
assessed and collected by either one or
both Of two methods: Personal return OF
the taxpayer. and deduction and payment
at the source Of the income. For the
year 1913 all such individual taxpayers
VIII make personal return Of income
for the purpose OF the assessment and
payment Of the tax, except as 10 that
portion Of such income from which the
tax is deducted and withheld at the source
during the months of November and De-
cember, 1913
This latter method Of assessing and
collecting the tax only relates to fixed
annual or periodical income exceeding
$500 year. such as fixed annual or
periodical interest. salaries rent royal
lies, partnership profits, etc.
The tax withheld upon any amount OF
taxable income during November or De-
cember will be only per cent OF such
income exceeding $500. This method II
Withholding the tax upon income in eX-
cess of 5000 contains one exception,
which relates 10 interest on corporate
bonds and other like indebtedness.
THE ! per cent tax on such interest
n accruing to all individual bondholders will
4 be withheld by the debtor corporation or
n its paying agent and paid to the govern
ment, even though an individuals income
r. under 5000 II the income of a per-
con is under 6 900. or II the tax upon the
same is withheld for payment at the
source or II the same is paid or 70 be
paid elsewhere in the United States. such
person may make affidavit TO such fact
and thereupon no return Will be required