The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1913-11-07
How The Income Tax Will Work

The Treasury Department is prepar-
ing for food of questions about the
| new income tax, realizing Ethat this
feature of the tariff bill, about to be-
come law, strikes more intimately at
the tax-paying citizen than do the in
direct taxes collected through the Gus
| toms dnties.
One of the first steps taken to get
general information before the public
will be to distribute income tax blanks
through postoffces, internal revenue Of
fees and other federal agencies. How
ever, the fact that he does not re-
ceive blank or request to paw the
tax will not exempt a taxable person
from the penalties of the law.
Representative Cordell Hull, of Ten
nessee. who drew the income tax pro-
visions of the tariff bill, made public
Monday a detailed explanation of the
tsx plan as it will touch the individual
citizen.
1.-The treasury regulations soon to be
prepared will make clear to every tax.
paver the requirements of the law and
| its application to income derived from
the various kinds of business, said Mr..
Hull. "Any person who keeps familiar
with his business affairs during the
wear should have no difficulty in execu
ting his tax return.
1.-THE income tax is divided into two
phases, the normal tax of one per cent
on the whole income above s., 900, and
the additional tax that begins with an
extra one ger cent. above $4,000 and
is graduated to six per cent. above
$500. 900. Wherever the income tax
is paid at the source, by crporated for
it's amployes or in similar cases, only
the one individual has to pay any ad-
ditional tax himself. The provisions of
the law requiring the tax to be with
held at the source does not take effect
until November l, 1913.
"For the first year the citizen will
return to the local internal revenue col
lection before March /, 1914, as to his
earinpf from March l, 1918. to the end
of this wear. The collector will notify
him June how much he ownes, and
the tax must be paid by June 80.
After next year the tax will apply on
the full calendar year.
eff the income of person is under
So, 900 or if the tax upon same is with
held for payment at the source, or II
the same is to be paid elsewhere in the
United States, affidavit may be made
to such fact, and thereupon no return
will be required.
1.-THE tax covers all incomes of citi-
zens of the United States, whether liv-
ing here or abroad; those of foreigners
living in the United States and the net
incomes from property owned or bust
ness carried on in the United States by
persons living abroad.
1.-The net income Includes all income
from salaries; or any compensation for
personal services; incomes from trades,
professions, business or commerce;
from sales or dealings in personal prop
cry or real estate; from interest, rent
dividend and securities; from all lawful
business carried on for gnin.
''The amount that may be deducted
from a total income includes the cost OF
carrying on business, actual losses. de-
probation allowances and tax exempt
or sax paid money. Living expenses
cannot be deducted nor can money spent
for permanent improvements to prop
erty; b. s,,od o,,+ hv
the taxpayers will be drawn up soon by
the Commissioner of Internal Revenues.
The taxpayer will have to give his gross
revenue; and then specify and claim the
deductions to which he feels entitled.
Unless mans income tax is paid at
the source he must hunt mp tsx blank,
fill it out and see that it find it's way
to the proper federal official in his dis
trict before N arch /, 1913.
Firms, corporation and the like hav-
ing the handing of interest. renrts,
salaries or other portions ct OF the In
come of any citizen are compelled to
deduct the tax for the individual and
pay it to the governments. The individ-
ual then will receive receipt showing
he has paid his tax.