Lincoln County times. (Jerome, Idaho) 1911-1919, 1913-10-09
MANY WILL PAY INCOME TAX
Estimated That 100000 Persons Are
Affected, and That So. $4,000 VIII
Be Raised.
INCOME TAX SCHEDULE.

MISUNDERSTANDING TO esti-
mates completed by the treasury ex-
perts. $4,000 American citizens must
keep such accurate account OF their
incomes this year that they will be
able 10 report TO the income tax col
lec,or next spring exactly how much
they owe the government under the
new income tax law.
So far as the taxable American Is
concerned. the income tax law is now
practically in force against him. While
the tariff law in which the law is EN-
bodied will not be signed until next
week. the first returns do not have to
be made 10 the internal revenue col
lectors before March l. 1914. But when
the returns are made they will Gov
er the income OF citizens from March
I. 1918. TO December 81. and the nrst
payment OF tax will be for money re-
ceived during this period
Every single person (citizen or for
eign resident) whose annual income
exceeds 5000. and every married per
son with an income above $4,000 is
expected 10 report his or her re-
ceipts in detail TO the government
agents March l OF each year
To Produce So. oco. 900.
The estimate completed indicates
that the income tax will produce $50
2sS.000 from the $4,000 persons taxed.
To this will be added the s35.OOO.OO
or more produced by the present cor
poration tax. which is continued as
part OF the law.
President Wilson. the federal judges
OF the Supreme court now holding Of
fee and employees of a state or anv
political subdivision thereof" are the
only persons specifically exempted
from the tax by the new law. The
president and judges now in Office
were made exempt TO escape any ques-
tons OF the constitutionality OF the
law. and their successors in Office will
be compelled to pay the tax.
First Burden Is on Citizen.
The general public is expected to
give close study to the new law in
the next few months. as the first bur.
den OF the tax payment rests with the
individual citizen. and his failure to
report his income is punishable By a
fine.
Ii is admitted that when first re-
turns are made many taxable persons
probably will escape payments. but
with each year the governments lists
Of persons with taxable incomes will
be made more nearly complete.
Methods of Collecting Tax.
Two primary methods OF collecting
the tax are contained in the law. One
Is that the individual return made by
the citizen; the other the returns by
and other employers who
pay their employees taxes at the
source" Under the law as 1t will be
signed by President Wilson next week.
every large company employing labor
will be compelled to report any regu-
lar salaries 1t pays in excess OF the
$4,000 figures. and will pay the taxes
for its employees and deduct the tax
from their pay envelopes.
This payment at the source" will
apply to salaries. rents. interests, roy
alties. partnership profits and some |
other sources OF income, and persons ,
receiving such incomes must be pre- |
pared to show that the money has
paid its TAX at its source
In figuring up his net income for
the taxpayer. the American business
man. after deducting $4,000 for him.
self. or $4,000. II married. will have
the right to claim the following add.
tional exemptions:
Necessary expense of carving nm
business, not including personal, living /
or family expenses.
Interest paid out OF Indebtedness.
National. state. county. school or
taxes paid within the year
Trade losses. or storm or fire
losses not covered by insurance.
Worthless debts charged off during
the year
A reasonable allowance for the de-
probation OF property.
Dividends from companies whose in
comes have already been taxed.