The Jones County news. (Ellisville, Miss.) 1909-1924, 1913-11-06
FEATURES or THE
income TAX LAW
Minimum Exemption Is Placed
at $4,000 Annually.
$1,000 MORE FOR FAMILIES

Additional Taxes For incomes Above
$4,000, Increasing Until the Maxi
mum of 6 Per Cent is Reached on
the Excess Above $500, ooo--Penalties
For Failing to Make Reports.
The income tax feature of the new
tariff law. made possible by the adop-
ton Of an amendment to the federal
constitution. marks new feature in
tariff legislation. 1t Is expected to
yield an annual revenue exceeding
$l00.00000O which makes possible the
reduction of tariff duties.
Under the terms of the new law
tax Of l per cent viii be levied on all
incomes in excess of $1,000 with GER
tain exemptions. The bill provides
that there shall be IAN additional tax
Of l per cent per annum upon he
amount By which the total net income
exceeds $4,000 and does not exceed
$4,000, and , per cent per annum
upon the amount by which the total
net income exceeds $4,000 and does
not exceed S7an00. 3 per cent per an
mum upon the amount by which the
total net income exceeds $4,000 and
does not exceed 100000. per cent
per annum upon the amount by which
the total net income exceeds S1OO.OOO
and does not exceed S250.O00 per
cent per annum upon the amount by
which the total net income exceeds
S250Q00 and does not exceed $5O0.o00
and 6 per cent per annum upon the
amount by which the total net income
exceeds $500000"
individuals to Make Returns.
Every person subject to the income
tax must make a report of his income
to the collector Of internal revenue in
the district in which he lives or in
which his business is carried on.
In defining what shall be considered
income for taxation. the bill says:
Subject only to such exemptions
and deductions as are hereinafter all
lowed, the net income of a taxable
person shall include gains. profits and
income derived from salaries, wages
or compensation for personal service
of whatever kind and in whatever form
paid. or fg4lQ prolessions. .xQca tons,
businesses. trade, commerce or sales a.
dealings IN property, whether real or
personal, growing out of the ownership
or use OF or interest in real or nersoral
property; also from interest rent di,,
uehus. securities or the transa ction 80
any iawfui business carried on for oat,,
OF pront or gains or profits and tncon,a
derived from any source wbstavar a.
Guiding the income from but MOI 49,,
salue OF property acquired by gift. be-
~ $3.50 ue'ise or descent, provided that
lhe proceeds of life insurance poIicias
palu upon the death of the person ~
sureu or payments made by or crad,t,d |
20 tne insured on life insurance on
uoWment or annuity contracts rno
lne return thereof to the insured at tho
maturity OF the term mentioned IN a.
sonliaet OF upon surrender of the con
~ aet shail not be included as income /.
me provisions of the bill for exemn.
nons as fnally agreed on are.
mere shall be deducted from tha
1nouht OF the net income of each of
'diu persons. ascertained az providad
herein the sum of $1,000 plus 81 COOL
additional If the person making tba 30
urn ne married man with a wife
wing with him and being herself not
aAaDle under the income tax law or
Jus the sum Of $1,000 additional If tho
erson making the return be a narriad .
OMAN WIN husband living with her
no being himself not taxable nndor
le income tax law, but in no event
nall this additional exemption of En-
~ be deducted by both husband
nd wife"
Foreign Residents to Be Taxed. b,
The bill contains provisions for tba pl
lxation OF the Incomes of citizens re- "
uing IN foreign countries on incomes la
rived from property owned or busi. di
'ss carried on in the United States It'll
ne bin also provides: In
'Ihat IL any person, corporation
mt stock company, association or in. re-
rance company liable to make the ca
Turn or pay the tax aforesaid shall cd
use or neglect to make a return ar &c
Tune or times hereinbefore speci- tor
IN each year. such person shall ha of
pie TO a penalty of not less than 500 ma
more than $1,000. Any person or ten
orficer of any corporation required car
Ia" TO make. render. sign or verify req
return who makes any false or Der
uouienf return or statement with In. the
10 ueieat or evade the assessment wo,
uired by this section to be ma5. pri,
u De guilty of misdemeanor and war
u be fined not exceeding $1,000 or val
imprisoned not exceeding one year. peri
'otn' ut the discretion of the court that
oS's " prosecution. ing