The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-11-01
Collection Of the Government
Income Tax Begins To-day.
The Treasury Department Is
sues Further Regulations.
has 4 LAWSUIT IN EVERY LINE
IL the Opinion of q Large Num-
Der of Senators.
Wall Street Is Greatly Dis
turbed by the Situation.

turbed by the Situation.
Washington, Nov. The income
tax. the most revolutionary revenue
raising power conferred on the Amer
starts today on the path that Is to
bring millions into the public treas
ury. Although an income tax mas
been agitated for many years ana It's
existence was assured by an amend
ment to the constitution, agreed TO Dy
tho necessary number of states early
last spring, its collection by a govern
ment which has not tried It,, Will
strain the resources OF the fertile
minds in the treasury department ana
will be accompanied. 1t is not doubted
here, with thousand complications
not now foreseen.
Since the administration began
framing an income tax law, the talk
has gone the rounds in Washington
that it would lead to many fights In
the courts and as the tariff bill pro-
crossed through the senate many
senator quietly expressed the view
vision was subject for a lawsuit.
The operation Of the law today az
fects only banks. corporations and
others responsible for payment on
bonds. mortgages. salaries. etc: For
such part as they are bound by the
law they must withhold lat the
source" The amounts SO withheld
are not payable Immediately to the
treasury and the money from the tax
will not begin flowing into the treas
for 1913 is to be collected from March
1, shortly after the constitutional
amendment was ratified. until Decem-
Der 81. Withholding agents. however,
must begin deducting the normal tax
of per cent at the source today.
Withholding it for November and De-
cember, with certain exceptions. The
individual reporting upon his own in
come of more than $4,000 year
makes his return to the collector OF
internal revenue in his district next
March.
Light From the Treasury.
The treasury department has issued
further regulations affecting collec-
lions at the source OF income. Its
synopsis follows:
Normal tax of 1 per cent is to be
withheld at the source where the in
come originates.
"All persons. firms, organizations,
etc, having the receipt custody, dis
come profits or gains required to
withhold tax except as exempt by law.
1.-The following income is exempt
from normal tax of 1 per cent with
held at source:
Dividends on capital stock or from
the net earnings of corporations and
like organizations that pay the nor
NAL tax Of 1 per cent on net income
Proceeds from life insurance con-
tracts, except annual interest pay
ments in excess of $4,000.
Income of individuals which is not
fixed or certain, such as income Of
farmers. merchants. agents compen-
stated on commission basis, lawyers,
doctors, authors, inventors and other
professional persons, with no fixed
annual income.
1.-THE value of property acquired by
gift, bequest or descent.
Interest on the obligations of the
United States or it's possessions, or a
state or any political subdivision
eral judges. All salaries paid by a
state, county or municipality, includ-
ing salaries of public school teachers
The normal tax not to be withheld
until such time as the total payments
Of an annual income exceeds $4,000,
then the tax is required to be with
held on the amounts of the total pay
ments. unless claim for exemption is
filed with withholding agent.
withholding agent not required to
withhold the normal tax of l per cent
until on or after November land then
only on amounts accruing on and
after November 1, 1913. when in ex-
cess OF $S,UUU.
persons subject to the normal tax
of 1 per cent when absent from the
United States or physically unable to
make returns required by law, may.
under certain conditions appoint
agents to act for them.
1.-THE penalty for false or fraudulent
returns of statements with intent to
defeat or evade the. tax is a fine Of
not exceeding $4,000 or imprisonment
not exceeding one year. or both"
Wall Street in Confusion.
New York. Nov. THAT part of
New York which is referred to Vaguely
as wall street" was in a state of con-
fusion today. For once in its career,
Wall street did not know which way
to turn. The new income tax law be-
comes effective and some of the high
est priced lawyers, bankers and cor
poration officials in the world confess
ed that they were completely at sea
as to it's meaning.
At z o'clock last night a group of
men emerged from the darkened cav
ernous interior of one of the largest
banks in the down town district. In
the group were the presidents and
vice. presidents of the banks. They
had Just concluded the last Of a series
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