The Red Cloud chief., 1913-10-09
MANY WILL PAY INCOME TAX
Estimated That 100000 Persons Are
Affected. and That Ss2,2ss, 900 VII,
Be Raised.
INCOME TAX SCHEDULE.


notwithstanding to esti.
mates completed by the treasury OK
perts. 100000 American citizens must
keep such accurate account or their
incomes this year that they will be
able To report TO the income tax col.
leCtor next spring exactly how much
they owe the government under the
new income tax law
SO far as the taxable American ia
concerned. the income tax law Is now
practically In force against him. While
the tariff law In which the law Is EN-.
bodied will not be signed until next
week. the first returns do not have to
be made to the internal revenue col
the returns are made they will COW
er the income OF citizens from March
l, 1913, to December 81, and the first
payment OF tax will be for money re-
ceived during this period.
Every single person (citizen or for
eign resident whose annual income
exceeds $4,000. and every married per
son with an income above $4,000. IL
expected to report his or her 70.
| ceipts in detail to the government
agents March OF each year.
To Produce $s2, 2,00O. 900.
The estimate completed indicates
that the income tax will produce $82..
298,OOO from the 425. 900 persons taxed.
To this will be added the $4,000. 900
or more produced by the present cor
poration tax. which Is continued as
part Of the law.
| President Wilson, the federal Judges
Of the Supreme court now holding Of
fice and employees "of a state or any
political subdivision thereof" are the
only persons specifically exempted
from the tax by the new law The
president and Judges now In of1ice
were made exempt to escape any Ques
tions Of the constitutionality OF thu
law, and their SUCCESSORS In once vii
be compelled to pay the tax.
First Burden 10 on Citizen.
Tho general public 10 expected 4
Eivs close study to the new law II
the next few months. as the first bur
den of the tax payment rests with thu
individual citizen. and his failure u
report his income II punishable BY {
fine.
1t is admitted that when FIRST re
turns arc made many taxable personI
probably will escape payments. bu
with each year the governments list
Of persons with taxable incomes will
be made more nearly complete.
| Methods Of Collecting Tax.
Two primary methods Of c0llectini
tho tax arc contained In the law. ON
IL that the individual return made b!
the citizen; the other the returns b!
corporations and other employers VIII,
Day their employees taxes at tn
source" Under the law a. It will b.
signed by President Wilson next week
every large company employing labo
will be compelled to report any regu
lar salaries It pays In excess of tn
$4,000 figures. and will pay the taxe
for its employees and deduct tho u
from their pay envelopes.
This payment at the source" vii
apply to salaries. rents. interests. roy
alties. partnership prohts and som
other sources of income. and person
receiving such incomes must be PR
pared to show that the money ha
paid It's tax at It's source.
In figuring up his net income 70
the taxpayer. the American bushes
man, after deducting $1,000 for hin
self. or $4,000. II married. will hav
the right to claim the following add
tional exemptions:
Necessary expense OF carrying o
business. not including personal. uvin
or family expenses.
Interest paid out OF indebtedness.
National, state, county, school O
municipal taxes paid within tho yea
Trade losses, or storm or fir
losses, not covered by insurance.
Worthless debts charged OF durin
the year.
A reasonable allowance for the d,
probation OF property.
Dividends from companies whose II
comes have already been taxed.