The Leon reporter. (Leon, Iowa) 1887-1930, 1913-10-30

The following statement of the
provisions of the income tax section
of the tariff bill was prepared by
Representative Cardell Hull, of Ten
nessess, a member of the ways and
means committee, who drew the Sec
ton as it passed the house:
Under the new income tax law ev-
cry citizen whose net income exceeds
$4,000 will be required to pay nor
NAL tax of one per cent upon such ex-
cess. However, for the year 1913
the tax will be measured by the net
income accruing from March 1st to
December 31st. The taxpayer whose
annual net income exceeds $4,000
for the year 1913, will, therefore,
only be taxed on that portion of the
same accruing from March list to De-
cember 31st: The normal tax of one
per cent applies from the lowest to
the highest taxable income. Each
taxable person will be furnished a
blank return by the district collector
or deputy, which such taxpayer will
be required to fill out and return to
the Office of the collector Of the dis
trict in which he resides between
January LIST and March list, 1914.
If any taxpayer should fail to re-
ceive such blank he will be required
under penalty to apply to the collec-
tor or a deputy for blank return.
Blanks will probably be on deposit
with most postmasters for the con-
venience of the taxpayer.
The treasury regulations soon to
be prepared will make clear to every
taxpayer the requirements Of the law
and it's application to income derived
from the various kinds of business.
To any person who keeps familiar
with his business affairs during the
year to the extent that at it's end he
knows with reasonable accuracy the
amount of his aggregate annual
profits, the matter of executing his
tax return would be both simple and
convenient.
The statutory exemption of $4,000
is allowed for personal living or fam
lily expenses; however, this and other
gross income for which special de-
auctions are allowed by the law must
be embraced in the return of gross
income, and the commissioner of in
ternal revenue will make these de-
auctions when he assesses and COM
putes the tax. Each taxpayer will
be notified of the amount Of tax due
by June, 1914, and will be required
to make payment by June 30, 1914.
The normal tax upon individuals is
assessed and collected by either one
or both OF two methods, viz: Person
al return of the taxpayer and de-
,duction and payment at the source of
the income. For the year 1913 all
such individual taxpayers will make
a personal return Of income for the
ment of the tax, except as to that
portion of such income from which
the tax is deducted and withheld at
the source during the months of No
.vember and December, 1913. This
latter method Of assessing and col
lecting the tax only relates to fixed
annual or periodical incomes exceed
ing $4,000 per annum, such as fixed
annual or periodical interest, salar-
les, rent, royalties, partnership pro-
fits, etc. Under the provisions of the
law this method requiring the tax to
be withheld at the source does not
take effect until November list. The
tax withheld upon any amount OF
taxable income during November or
December will only be one per cent,
of each income exceeding $4,000.
This method of withholding the
tax upon income in excess of 5000
contains one exception, which relates
to interest on corporate bonds and
other like Indebtedness. The one per
cent tax on such interest accruing to
all individual bond holders will be
withheld by the debtor corporation
or it's paying agent and paid to the
even though an individ-
ual's income is under $4,000. If the
income of a person is $4,000, or if
the tax upon the same is withheld for
payment at the source, or if the same
is paid, or to be paid elsewhere in
the United States, such person may
make affidavit to such fact, and there
upon no return will be required.
Below is given synopsis of the
new law as it relates to the taxation
of individuals. The corporation tax
provisions are not synopsized for the
reason that they are substantially a
of the present corpora
ton excise tax law.
incomes COVOTVu-
Those of all citizens of the United
States residing at home or abroad.
Those of all persons residing in |
the United States although not citi-
zens thereof. |
n. All net incomes from property own
ed and from every business, trade or
profession carried on in the United
States by persons, aliens or citizens
residing elsewhere.
Normal Tax
One per cent per annum upon the
amount of net income over $4,000
for individuals, and over $4,000 for
husband and wife living together.
Additional Tax
One per cent per annum upon the
,otal amount of net income from all
sources over $4,000 and not over
100000 per annum.
Two per cent per annum upon the
amount of net income over $4,000
Ind not over $4,000.
Three per cent per annum upon
he amount by which the total net
income exceeds 5000 and does not
,xcnp6 S100 600 'sg.1fd5;- 'tAgg EE