Cheraw chronicle. [volume] (Cheraw, S.C.) 1896-2005, 1913-10-09

to strip the income tax section Of the
tariff bill of its technical language,
Representative Cordell Hull, who
drafted the section. makes plain how
the new tax will apply to the $4,000
citizens of the United States who,
the Treasury Department estimates
must make returns under 1t.
All disputes may be carried to the
Commissioner of Internal Revenue,
whose decision is final.
JUST WHAT is INCLUDED IN
WORD TNcoME."
Under the terms Of the bill in its
final form the net income of each in
diyidual taxpayer is to include the
following items:-
All gains, profits and incomes de-
rived from salaries, wages or COM
pensation for personal services OF
any kind, professions or vocations,
business, trade or commerce, sales or
dealings in property, real or personal
interest, rent, dividends and secur
tiles. Also the gains and profits from
any transactions of lawful business
and the income of property acquired
by gift or bequests. Neither the re-
turn nor any part Of the principal In
vested in life insurance to the assured
not the proceeds of policies paid upon
death, are included as income.
From these items of income the fol.
lowing deductions are allowed
1. Necessary expense actually in
Cured in carrying on any business.
2. All interest accrued and pay
able within the year on indebtedness
8. All national, State, county.
school and municipal taxes.
4. Losses actually sustained dur
ing the year in business. not ccmpen-
stated by insurance or otherwise. aris-
ing from fire, storm or shipwreck.
s. Debts actually ascertained to be
worthless and charged off during the
year.
6. A reasonable allowance for the
exhaustion or wear and tear on prop
erty, not to exceed, In the case OF
mines, five p' cent of the gross
value at the Inc of the output for
the year.
Z. All income, the tax upon which
has been paid at the source.
s. Amounts received as dividends
upon the stock of any corporation,
which is taxed upon its net income,
but such dividends shall not be de-
Quoted unless included in the return
as a part of the gross income.
The following items will not be al.
lowed as deductions:-
1. All personal living or family ex.
penses.
2. Taxes assessed against local
benefits.
8. All expense of restoring prop
erty or making good exhaustion there
of, for which an allowance has been
made.
4. Accounts paid for new build
ings, permanent improvements made
to increase the value Of any property
or estate.
In computing the net incomes the
following exemptions are allowed
l. interests upon the obligations
of an estate or any political subdi-
vision thereof.
2. Interest upon the obligations or
the United States, or its possessions.
The President is exempt from the
tax as are also the judges OF the Su-
preme and. inferior courts OF the
United States and all officers and en-
ployes of a State or any political sub
division of a State. Senators ana
Representatives are obliged to pay
the tax.
Besides all taxable persons OF law
ful age. guardians trustees and ex-
ecutors are obliged to make return to
the Internal Revenue Bureau.
These are the items on which In
come will be withheld at the source
whether or not it amounts to $4,000.
1. Income derived from bonds,
mortgages and other Indebtedness OF
corporations and joint stock COM
panies.
2. Incomes composed of coupons,
checks, or bill of exchange for or In
part payment Of interest or dividends
on stock or obligations of foreign cor
porations.
3. Interest upon bonds of foreign
companies.
4. Foreign mortgages or like oblt-
On atinnS NOT naNa bile in the limited