The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-11-05
OPERATION OF LAW WHICH
GOES INTO EFFECT SATUR.
DAY AFFECTS ONLY
BANKS AND COR
PORATIONS.
Treasury Department Issues Regula-
t,ons Covering the Whole Extent of
Impost-Points Out What Is To BE
Paid at the Source and What Part
~ Exempt.

ican government since is foundation,
tomorrow starts upon the path that is
to bring billions into the public treas
ury. Although II has been discussed
Tor many year. and its success was
assured by an amendment to the cCn-
stitutiOn early last spring, it's coll
lection by government which has
not tried IL will strain the resources
OF the fertile minds In the treasury
department and will be accompanied,
IL Is not doubted here. with a thous-
and complications not now foreseen.
Ever since President Wilson early
this month signed the tariff bill with
Its income tax provision the machin-
cry OF the treasury department has
been at work upon the regulations
that are to govern collection Of the
tax Assistant Secretary Williams to-
night said that the regulations of the
department were not difficult to un-
derstand, but some other officials in
the department do not agree. Thous-
ands OF letters and kilograms bringing
up for settlement points in the new
law have poured into the department.
They have come from every conceiv-
able source and added to the labor
OF making regulations. have made
the task of the experts one not to be
envied.
The man in the street who knows
he makes more than $4,000 a year,
and who practically is responsible for
his share OF the tax, does not need to
begin worrying about his payments
for the present. The operation of the
law tomorrow affects only banks, cor
porations and others responsible for
payment OF bonds, mortgages, sal
aries. etc. For such part as they are
bound by the law they must withhold
"at the source" The amount so with
held Is not Immediately payable to
the treasury and the money from the
tax will not begin flowing into the
treasury vaults for many months. The
tax for 1913 is to be collected from
March 1. shortly after the constitu-
tional amendment was ratified, until
December 81. The treasury depart
ment tonight issued further reguia-
tions affecting collections at the
source of income. Its synopsis fol-
lows:
Normal tax OF per cent is TO be
withheld at the source where the in
come originates.
All persons. firms, organizations,
ETC.. having the receipt. custody. dis
postal or payment OF any annual in
come profits or gains. are required
to withhold tax except as exempt by
laws.
The following income is exempt
from normal tax of per cent being
withheld at source.
Dividends on capital stock OH
net earnings OF corporations and like
organizations that pay the normal tax
OF L per cent on it's net income.
Proceeds from life isurance con-
tracts except annual interest payments
In excess of $4,000.
Income OF individuals which is not
liked or certain, such as income OF
farmers. merchants. agents compen-
sated on commission basis. lawyer
doctors. authors inventors and other
professional persons. with no fixed an
nual income.
The value OF property acquired by
gift. bequest or descent.
Interest upon the obligations OF
the United states or it's possession or
State or any political subdivision
thereof, salary OF president and fed
erai judges. All salaries paid by
state. county or municipal. includ-
Ing salaries of public school teachers
"The normal tax is not to be with
held until such time as the total pay
ments of an annual income exceed
$4,000; then the tax is required TO be
withheld on the amounts of the total
payments unless claim for exemption
Is He'd with Withholding agent.
Persons liable for the personal tax
OF i per cent may claim from with
holding agent or collector Of internal
revenue. benefit Of "a deduction OF
taxes. interest and other items as pro-
Vided by law.
Withholding agent il not required
TO withhold the normal tax OF 1 per
cent until on or after November /. and
then only on amounts accruing on and
after November 1. 1918. when i'm ex-
sess of $4,000.