The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-26
BY JOHN EI.FRETH WATKINS.
Washington. October 20.

Il INV ABOUT your income
Is IL assessablc under the new
income tax Just imposed by
Congress?
have been talking to the man who
will collect the whole OF Uncle sans
income tax. ana he has explained TO
me It's complications has described to
me the machinery which he Win install
TO collect 1t In every State and terri
tory Of the Union
This official is Luther : Spccr. who.
two hours before visited min. had
been promoted to the new once or
deputy commissioner OF internal reVc-
nue.. IL has been head OF the cor
poration tax division Of the Treasury
ever since II was installed. but now
he will not only collect that tax. but
tho personal income tax as well He
was horn forty-siH years ago ~ Ban
gor. Pa. and after being graduated
at his State normal school was ap-
pointed TO the civil service In Wash
ingtcn. twenty-five years ago. his
early service being in the Internal
revenue bureau, where he has since
remained, After becoming thus es-
tablshed a. the capita! he took the
regular and post graduate courses nj
the Columbian Law school He is the
and has been lecturer before account
ing bodies
Half Million People Affected.
IT Is estimated that the income tax
law Will affect directly more than a
half million citizens ara Aliens Mr..
Speer told me. And q Very much
larger number viii be DESTROYS OF OF.
tanning information which Will enable
them 10 determine whether they are
within or without the requirements Of
the law.
Oft Of
whether residing 1T home OF abroad.
and every person residing in the
United States. whether a citizen or
not. will be liable TO this tax levied
at the rate OF ! per cont annually upon
such o: his or her entire net income
as exceeds $4,000. except IN certain
cases. which / VIII mention later
There being doubt Isl the minds Of
members OF Congress a. 10 whether the
tax II laid FOR the :ull calendar year OF
1918 would bc constitutional. because
the Secretary Of states proclamation
Of the lnccpc tax ui,1cndmrnt to the
Constitution was not issued until the
9th Of February last. IL has been de-
c!dcd TO ceiculAte the nrst taN under
this Law on incomes from March ! TO
December ~ o: THIS year. 50. ia com
putting the tax for these ten months.
one-sixth VIII be deduced from what
would be the full annual assessment.
Married People Favored.
Bear in mind tina; the personal in
come tax IS 10 he lcvied on the net in
comes or individuals. In ascertaining
this net income two Kinds OF deductions
W. be allowed from the gross In
come The ilrst o: these Is known as
tho SPECIFIC exemption when is $4,000
for all unmarried persons and $4,000
for all married men living with their
wives or married women living with
their husbands. 1t should be under
stood. however, that only one deduction
Of $4,000 VIII be made from the ag-
Rregate income OF both husband and
wife when living together. The second
deduction is that for necessary cX
penses. in;crcs; paid within tie year,
taxes. losses, etc. allowable In the as
certa!nment Of net income when the
gross income Is derived from business.
How Expenses Are Dednccd.
These deductions Tor necessary OK
penses actually paid In carrying on any
business VIII not include personal.
living or family expenses. All neces-
sary expenses such as clerk hire. rental
OF place OF business. lighting, heating,
stationery, livery charges. etc. Will be
considered as exceptions growing out
of the conduct OF the business But
expenses for medical attendance, store
accounts family supplies. wages OF do
rnestice servants. cost of board, room
or house rent for family or personal