The state herald., 1913-10-10
Interest from state, municipal o
government bonds.
Must be Entlre MNet lnnnpa.n

'' sAAos sno SaAADle person must
make return to the internal revenue
collector for his entire met income"
and exemptions claimed under the law
must be submitted to the federal 'offl.
GERS for them to determine upon their
reasonableness or legality.
The amount of the income tax, as
nnaiiy agreed upon, follows:
From $4,000 to $4,000, l per cent;
from $4,000 to $4,000, 2 per cent;
from $4,000 to $4,000, per cent;
from $4,000 to 100000, 4 per cent;
100000 to s25o.OOO, per cent; $780,
900 to 100000. per cent; above
100000, per cent.
A single man with an income of
$4,000, for example, would pay per
cent on $4,000 and 2 per cent on $500,
q total tax of 1910 II married, the
nrst tax OF l per cent would apply to
only $4,000 of the income.
Ready to Answer Questions.
The treasury department is prepar-
ing for flood Of questions about the
new income tax. realizing that this
feature of the tariff bill about to be-
come law strikes more intimately at
the tax paying citizen than do the
indirect taxes collected through the
customs duties.
Representative Cordell Hull of Ten
nessee who drew the income tax pro.
vision Of the tariff bill which will soon
become law. made public detailed
explanation Of the tax plan as 1t will
touch the individual citizen.
"The treasury regulations soon to
be prepared will make clear to every
taxpayer the requirements OF the law
and Its application to income derived
from the various kinds of business" I"
Mr.. Hull said. ANY person who keeps
familiar with his business affairs, dur
Ing the year should have no difficulty
In executing his tax return.
How Tax 10 Divided.
THE income tax is divided into two
phases. the normal tax of one per
cent. on the whole income above
| $4,000, and the additional tax that be-
gins with an extra one per cent. above
| $4,000 and is graduated to six per
cent. above 100000. Wherever the
Income tax is paid at the source by a
corporation for its employees or In SINH
lar cases, only the one per cent nor.
NAL tax Is SO paid.
"The Individual has to pay any a.
ditional tax himself. The provisions
Of the law requiring the tax to be
withheld at the source does not take
effect until November /. 1918.
For the first year the citizen will
make return to the local Internal reve
nue. collector before March /, 1914
as to his earnings from March /. 1913
to the end of this year. The collector
will notify him June 1 how much
he owes and the tax must be paid
by June 80. After next year the ta,
will apply on the full calendar year.
IF the income OF person is undei
$4,000 or II the tax upon same II
withheld for payment at the source
or II the same is to be paid elsewhere
In the United States. affidavit may b.
made TO such fact and thereupon nj
return will be required.
Covers Incomes Of All Citizens.
The tax covers all incomes OF clti
zens Of the United States. whether liv
Ing here or abroad; those OF foreign
ers living in the United States. ant
the net incomes from property ownet
or business carried on In the Unitet
States by persons living abroad
The net income includes all In
come from salaries or any compensa
,tion for personal services: income,
from trades, professions, business. ol
commerce; from sales or dealings II
personal property or real estate: from
interest. rent. dividends from securi
ties: for all business carried on fol
gain.
Requests will not be considered In
como. nor win life insurance paid to
beneficiary or returned to the In
sured person as paid up or sur
rendered policy be taxable, Interest
on such property viii be included al
Income. however.
The amount that may be deducted
from total Income includes the cos,
OF carrying on business, actual losses,
depreciation allowances, and tax ex'
empt or tax paid money Living ex
penses cannot be deducted. nor can
money spent for permanent improve
ments to property.
Forms to Be Ready Soon.
The form that II TO be iilled ou,
by the taxpayer will be drawn up
soon by the commissioner OF internal
revenue. The taxpayer will have to
give his gross revenue and then speci'
~ and claim the deductions TO which
he feels entitled.
Unless n mans income tax IL paid
nj tho source he must hunt up n tar
blank. MI Il out. and see tina, l, finds
it's way TO tho proper federal ofiieial
In his district before March !. 1914.
Firms. corporations. and the like
having the handling OF interest. rents.
salaries. or other portions OF tho In
como OF any citizen are compelled to
deduct the tar for the Individual and
pay II to the government. The indl'