Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-04-09

Included in the democratic tariff re-
vision bill just introduced in congress
is an income tax section which would
require every resident of the United
States who earns more than $4,000 a
year to pay a tax of l per cent on his
earnings in excess of the exemption.
This would not require the man who
earns only $4,000 TO pay a tax, but it
would demand that the individual who
earned S4,1OO, for example, to pay into
the government treasury an annual tax
OF l per cent on 500, or 81.
The bill also would provide higher
rates OF taxation for persons with
larger incomes, adding a surtax of l
per cent additional on earnings in ex-
cess OF $4,000; 2 per cent additional
on earnings in excess of $4,000, and
per cent additional on earnings in
excess of 100000.
Under the surtaX provisions the man
no earns only $4,000 would pay TO
the government each year at the rate
o. ! per cent on $4,000 $4,000 ex,
empJJ, or $3.50 If he earns 100000
he would l per cent on $4,000 still
and . per cent on $4,000. thus making
mis- annual tax $3.50. The person with
q $4,000 income would pay l pei
cent on $4,000 and per cent Oh
S2O.0OO-a total tax of s760.
The man with an income of 100000
would be required to pay l per cent
on $4,000, per cent on 100000, anC
. 8 per cent on $4,000, which would be
$500, bringing his total income ta1
10 $3.50. The individual with a net
/ ircome of a million would pay this
/ s. $50 on his first 100000 and in ad
diIiou he would pay per cent on $500,
/ Gee. which would bring his total TAI
/ to $3S,26O.
The bill also would reenact the pres
eur corporation tax law imposing a
per cent tax on the earnings Of cor
porations, stock companies, insurance
companies, and the like, but it would
exempt partnerships.
This is a fiat tax, there being NJ
graduated scale as the earnings in
crease The few changes from the pres
ert corporation tax act concern chief.
the time Of making returns and tn
time for collection.
The bill also includes under its pre-
visions the property and earnings /,
this country Of persons who liv
abroad.
i is estimated by members of tn
ways and means committee that al
uroyimateIy Sl0o,OO0,OOO in revenu
may be derived from this new tax. il
Guiding the corporation tax, tina
amount making up for the deficit j
revenues to be derived from import
by virtue Of the greatly reduced tart
rates and the transfer to the free lis
OF articles that are classed as nece'
saries of living.
Incomes OF taxable persons shall il
clude gains, profits and income d.
rived from salaries. wages or compeI
sat.ou for personal service OF wha
ever kind and in whatever form paiC
or from professions. vocations, bus
moss. trade, commerce, or sales c
dealings in property; also from int
est. rent. dividends. securities. inclut
Ing income from property, incom
from but not the value of property a.
qlired by bequest, devise, or descen
and also proceeds of life insuranC
policies paid upon death of person
insured
The bill allows as deductions i
computing net income all necessaT
. expenses actually incurred in carr,
ing on any business, not including pc
sonal living or family expenses, il
.terest accrued and payable within tn
year by a taxable person on indebte
ness: all national, state, count
; school and municipal taxes. not i
Guiding local benefit taxes; losses Il
b CURED in trade or from fires, storm
or shipwreck not compensated by il
sUrance or otherwise; debts actual
. ascertained as worthless and charge
of: also reasonable allowance Il
wear and tear on property, but 7
deduction or Improvements made
. increase property value.
It excerpts also. in computing u,
income. amounts received as dix
dends upon the stock Of any corpor
ton. joint stock company, associate
or insurance company which is Ia
able upon its net income under Il
. corporation tax provision OF the bill
The bill excludes the compensate
o. the president Of the United Stat
during his term. judges OF the supreu
and inferior courts Of the Unite
States and compensation Of all of
z GERS and employees of a state or al
political subdivision thereof.
: Il establishes a system OF collectiC
= OF the tax at its source. requiring e
persons, firms. co-partnerships, col
- psnies. corporations, joint stock col
g paries. associations, or insurance col
o pauies and all trustees, executors, a
= uinistrators, receivers, etc, and OF
r GERS and employees OF the Unit,
:, States having the control or dispos
. O. salaries. wages, interest and 9th
p profits and income OF another perst
+ 70 withhold and pay 70 the collect