The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1913-10-02
u. S. PLANS TO
EXPLAIN TAX
Treasury to Give Information on
Income Law.
HULL EXPLAINS OPERATION
Representative Who Drew Measure
Holds Thoee Familiar With Own
Business Can Execute Re-
turn Very Quickly.

Washington. Oct 1.-The treasury
department is preparing for flood
of questions about the new income
tax
| One Of the first steps taken to get
general information before the public
will be to distribute income tax
blanks through post offices, internal
revenue officers and other federal
agencies.
Representative Cordell Hull of Ten
nessee, who drew the income tax
provision OF the tariff bill, made pub
lie detailed explanation Of the tax
plan as It will touch the individual
citizen.
THE treasury regulations soon to
| be prepared will make clear to every
taxpayer the requirements OF the law
and it's application to income derived
from the various kinds OF business, ="
said Mr.. Hull. ANY person who
keeps familiar with his business at
fairs during the year should have no
difficulty in executing his tax return
Levy Part at Source.
The income tax Is divided into two
phases, the normal tax Of one per
cent on the whole income above 49,
600 and the additional tax that begins
with an ext one per cent. above
500, 900 and is graduated to six per
cent. above 100000. Wherever the
i, ~ he Nv
corporation for its employees or in
similar cases, only the one per cent.
normal tax Is SO paid. The individual
has to pay any additional tax him
self The provisions of the law re-
quiring the tax to be withheld at the
source does not take effect until No
vember /, 1913.
For the first year the citizen will
make return 70 the local internal rev.
enue collector before March /, 1914,
as to his earnings from March 1. 1913,
to the end of this year. The collec-
tor will notify him June l how much
he owes, and the tax must be paid by
June 80. After next year the tax will
apply on the full calendar year.
IF the income Of a person is under
$4,000 or If the tax upon the same is
withheld for payment at the source,
or If the same is to be paid elsewhere
In the United States. affidavit may be
made to such fact and thereupon no
return will be required
Reaches Citizens Abroad.
The tax covers all incomes Of citi-
zens of the United States whether
living here or abroad; those of .or-
eigners living in the United States
and the net incomes from property
owned or business carried on in the
United States by persons living
abroad.
The net income includes all in
come from salaries or any compensa-
ton for personal services: incomes
from trades, professions. business or
commerce; from sales or dealings in
personal property or real estate; from
interest, rent, dividends from secur-
tiles for all business carried on for
gain.
requests will not be considered in
come, nor will life insurance paid to
beneficiary or returned to the in
sured person as paid up or sur
rendered policy be taxable. Interest
in such property will be included as
Income, however.
What May Be Deducted.
"The amount that may be deducted
from total income includes the cost
Of carrying on business, actual losses,
depreciation allowances and tax ex.
empt or tax paid money. Living ex-
penses cannot be deducted nor can
money spent for permanent improve
ments TO property,
THE form that Is to be filled out by
the taxpayer will be drawn up soon
by the commissioner OF internal rev.
enue. The taxpayer will have to give
his gross revenue and then specify
and claim the deductions to which he
feels entitled. Unless a mans income
tax Is paid at the source he must
hunt up tax blank, I'll it out and see
that 1t finds its way to the proper fed
eral official in his district before
March ], 1914.
Firms, corporations and the like
having the handling of interest, rents.
salaries or other portions of the in.
come Of any citizen are compelled to
deduct the tax for the individual and
pay 1t to the government. The indi.
vidual then will receive a receipt