The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-05-17
SATURDAY, MAY II, 1918.
INCOME A LAWS.

Tax on income is not a new thing in
the United States, as there have been
a number Of income tax laws, n hav-
ing been passed in 1861 which taxed at
the ate Of 8 per CEN all income over
$500. The income tax feature of the
pending tariff measur eXempts all in
comes under $4,000 and provides for a
tax on all incomes in excess Of that
amount, the tax rate being:
One per cent on excess Of all incomes.
aover $500.
~ Cine per cent additional on excess
over $4,000.
: Two per cent. additional on excess,
Hover $50, 900.
Three per cent additional on excess
over 800, 600.
Thus. on a net income Of $1,000, 600
4he tax would be"$3S, ESQ.
The corporation tax is to- remain un-
changed at 1 per cent.
Under the surtax provisions, the man;
who earns 100000 would pay to the
government each year at the rate Of l
per cent on $4,000 $4,000 exempt, or
$3.50. If he earns $50, 600 he would pay
I per cent on $16, 1000, n 2 per cent
on $40, 900, thus making his annual tax
$3.50. The person with a $500 900 in
come, would pay / per cent on SIS, 900
and 2 per cent on $30,000-a total of
$3.50. The man with an income Of
500, 900 would be required to pay 1 per
cent on SIG, 900, 2 per cent on $50, 900,
-J . 49, a11+ ~ CEn nnn 1~;,-;a liz
tax to $2,26O. The individual with g.
net income of 81. 900, 900 would pay this
So 200 on his first 500, 900, and in addi-
ton he would pay 4 per cent on $780,
900, which would bring his tax UP to
$38,260.
It is estimated that approximately
800, O 10000 in revenue may be derived
from this tax, including the corpora
ton tax. All the preFious income tax Ia
laws yielded much less than this one
is expected TO yield, although the ex-
emptions were small.
Following the first income tax of
1851, which taxed all mounts over
$500, 3 e cent, a second income tax
law was passed in 1852, exempting $500
and the amount of house rent ac-
tually paid, the rate Of taxation being
3 per cent on all amounts between
$500 and $4,000. and 5 per cent on
amounts above $4,000.
The third income tax law, passed in
1864, fixed the rate at 5 per cent on all
incomes between $500 and $4,000; rs
per cent from $4,000 to $40, 900 and 10
per cent on all amounts over $40, 600.
This law was again amended in 1855
so that incomes of over $4,000 were
taxable at 10 per cent while all below
this sum down to~$600 were taxed ats
per cent.
In 1868 the total raisedSfrom taxation
Of Incomes was less than 49, 900, 00O
but in 1856 the total amount, was rails
cd to nearly $4,000, 900.
Experience with the former income
tax laws, where there were nuemrous
,evasions and delinquents, has taught
those who are considering the present
measure that this feature must be
Hooked after carefully, to the end that
none may escape, and as a result there
are heavy penalties provided for per
sons or corporations who attempt tt
escape the tax.
Uncle Sam has also become niue;
o. Of a terror to those who woult
like to violate the federal law, in recenr
years and, 1t is not very likely tina,
many will take a chance on a trip t.
"a federal prison, in order to escapt
paying their share of this new tax.