The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1913-10-10
OF THE
INCOME TAX Law
Minimum Exemption Is Placed
at $4,000 Annually.
$1,000 MORE FOR FAMILIES


Additional Taxes For Incomes Above
$4,000, Increasing Until the Maxi.
mum of 6 Per Cent 10 Reached on
tho Excess Above $500, ooo-Psnaities
For Failing to Make Reports.
The income tax feature Of the new
tariff law. made possible by the adop-
ton Of an amendment to the federal
constitution. marks a new feature in
tariff legislation. 1t Is expected to
yield an annual revenue exceeding
$l00.OO0,OOO. which makes possible the
reduction of tariff duties.
Under the terms of the new law
tax Of per cent will be levied on all
incomes in excess of $1,000 with GER
tain exemptions. The bill provides
that there shall be IAN additional tax
Of per cent per annum upon the
amount by which the total net income
exceeds $4,000 and does not exceed
$4,000. and per cent per annum
upon the amount by which the total
net income exceeds $4,000 and does
not exceed $4,000. per cent per an
mum upon the amount by which the
total net income exceeds $4,000 and
does not exceed 100000. 4 per cent
per annum upon the amount by which
the total net income exceeds 100000
and does not exceed $25O.O00. 8 per
cent per annum upon the amount by
which the total net income exceeds
$3.50. 900 and does not exceed 100000
and per cent per annum upon the
amount by which the total net income
exceeds 100000"
individuals to Make Returns.
Every person subject to the income
tax must make report Of his income
to the collector of internal revenue in
the district in which he lives or In
which his business Is carried on.
In defining what shall be considered
income for taxation. the bill says:
Subject only to such exemptions
and deductions as are hereinafter al
lowed. the net income Of a taxable
person shall include gains, profits and
income derived from salaries, wages
or compensation for personal service
of whatever kind and In whatever form
paid, or from professions. vacations,
businesses. trade. commerce or sales or
dealings in property. whether real or
personal. growing out Of the ownership
or use Of or interest in real or personal
property; also from interest. rent. divi-
dends. securities or the transaction OF
any lawful business carried on for gain
or profit or gains or profits and income
derived from any source whatever, In
GLIDING the income from but not the
value of property acquired by gift, be-
9 quest. devise or descent provided that
the proceeds Of life insurancefpolicies
! paid upon the death of the person in
sured or payments made by or credited
6 to the insured on life insurance. en-
: dowment or annuity contracts upon
the return thereof to the insured at the
. maturity Of the term mentioned In the
contract or upon surrender Of the con-
! tract shall not be included as income. !"
The provisions of the bill for exemp-
. lions as finally agreed on are:
There shall be deducted from the
! amount Of the net income Of each OF
said persons, ascertained as provided
, herein. the sum of 5000 plus $1,000
; additional If the person making the re.
; turn be a married man with wife
> living with him and being herself moi
> taxable under the income tax law. OF
. plus the sum Of $1,000 additional If the
: person making the return be married
woman with husband living with bel
9 and being himself not taxable undel
. the income tax law, but in no even
G shall this additional exemption OF 81,
900 be deducted by both a husband
and WIFE"
G Eoreian Residents to Be Taxed.
The bill contains provisions for tn
taxation Of the incomes of citizens re
siding in foreign countries on income
9 derived from property owned or bus
= ness carried on in the United State.
,e The bill also provides:
. THAT II any person. corporation
~ Joint stock company. association or II
% surance company liable to make To
,e return or pay the tax Aforesaid sha
70 refuse or neglect to make a return
~ the time or times hereinbefore spec
20 fed In each year. such person shall
% liable to a penalty Of not less than 5,
~ nor more than $1,000. Any person
to to any officer of any corporation require
&C by law to make. render. sign or veri1
20 any return who makes any false
"a fraudulent return or statement with
tent to defeat or evade the assessme
required by this section to be mat
30 shall be guilty of a misdemeanor al
shall be fined not exceeding $1,000
be imprisoned not exceeding one yes
or both. at the discretion Of the coul
a. with the costs Of prosecution"
90 The first tax is to be levied and co
loo lected on incomes from March l. 19l
to Dec. 81. 1918. Thereafter the
~ come shall be computed for calend