Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-04-07

Ht iHuiNitNNi WIN n net iNNh0t u
a million would pay thus sz.2s0 on
his first 100000 and ia addition ho
would pay four per cent on SsO0.o00.
which would bring hls tax total 20
sss. g60.
The bill also would fe-enact the
present corporation tax law. Imposing
a one per cent tax on earnings OF cor
poratlona. stock companies, insur-
ance companies and tae like. but u
would exempt partnerships. This Is
a hat tax. there heiur no graduated
scale ias the earnings increase. The
few changes from the present corpof-
alton tax act. concern chiefly the tlmo
OF making returns and the time for
collection.
The bil also includes under its pre-
visions The property and earnings In
this country of persons who live
abroad
10 is estimated By members OF the
ways and means committee that ap-
proXimateiy sf00.00a. 900 In revenue
may be derived from this new tax. in
ciuding tho corporation tax. that
amount making up for the dencit in
revenues to be derived from imports
BY virtue OF tho greatly reduced tarim
rates and tho transfer to the free list
OF articles that are cinssed as neces-
saries OF living.
Incomes Of taxable persons shall in
clude gains. profits and Income derived
from salaries, wages, or compensation
for personal service of whatcver kind
and In whatever form paid. or from
profession. vocation, business. trade.
commerce, or sales or dealings Ia
property, also from interest rent. div
idends. securities. Including Income
from property, income from but not
tho value of property acquired by be-
quest. device or descent, and also pro-
ceeds OF life insurance policies paid
upon death of persons insured.
The bin allows as deductions In
computing net income all necessary
expenses actually incurred IN carry
Ing on any business, not including per-
sonal living or family expenses. in
terest accrued and payable within tho
year by a taxable person on Indebted
ness; all national, state. county schooi
and municipal taxes. not Including To-
cal benefit taxes; Losses Incurred Ia
trade or from fires. storms or ship
wreck not compensated by Insurance
or otherwise; debts actually ascer-
tanned az worthless ana charged on;
also reasonable allowance for wear
and tear on properly but NO deduc-
tion will be allowed Tor expense Of
restoration or improvements made tol
increase property value.
il excepts also. in computing net in
come. amounts received as dividends
upon tho stock Of any corporation.
Joint stock company. association or IN
surance company which Is taxable upno
its net income under the corporation
tax provision Of the bill.
The bill excludes the compensation
OF the president of the United states
during his term. judges OF the supreme
and inferior courts OF the United
States, and compensation OF all officers
and employees of state or any polit-
ical subdivision thereof
II establish IS system of collection
of the tax at It's source, requiring all
persons, tirms. partnerships cons
punies. corporations. Joint stock COM
panies, associations or insurance COM
panies and all trustees. executors. adj
mlnistrators. receivers. etc. and ofli-
GERS and employees of the United States
having the control OF disposal OF saiar-
les. wages. interest and other profits
and income of another person 20 with
holG and pay "a the collector of In
nernal revenue the amount of income
tax due from. such person. All such
persons or arms are made personally
liable for such TAX.
f.
make return on Incomes who fail 10
do SO az a specified time. are made
liable 10 q fine not exceeding ts00 ana
the penalty for false or fraudulent rec
turns Is fixed az $1,000 or lmprison-
ment not exceeding one year or both.
I'm formulating this additional inn
post said Chairman Underwood in
his report, "the attompi has been
made 10 provide not only source of
revenue hut also means of redress
ing In some measure the unequal tax
burdens which result from the prac-
tico of basing the federal income cn-
tlroly upon customs aud internal rev-
enue duties. This u systom of tax
alton which inevitably throws the our-
den OF supporting the government up
on the shoulders of the consumers. n
correspondingly eNempts the money
of the larger Income Garner. whose
consumption OF tho ordinary necessl-
ties Of life rs subject 90 tarin tsSation
iu FAR less aggregate degree than is
that ~ smaller income earners who
oxpend the greater portion of their
resources FOR the ordinary necessities
Of Hfe"
Tho bin provides that am taxable
persons shall be notified of the amount
for which they are liable. under the
law on or nefore tho first day Of June
of each year and assessments 90 bo
paid ON or before June 80. For delay
in making payments. ana ten DAYS
aftor notice. there shall be- added the
| sum of nve per cent on the amount of
tax unpaid aud "a the rate of one per
cent a month from the time tho tax
fell due.
The corporation tax provision. IL is
directed, shall be computed upon in
comes for the year ending December
81, 1918, and for each calendar wear
thereafter lt is provided. however
that corporations may designate tho
last day Of amy month as ths day of
tha Ntuuiurr Uanaf t..a.s a.I ..l.. hoo.