The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1913-04-10
Plan to Raise
$1O0,O00,OOO BY
Tax on Incomes
Democratic Tariff Revision Bill In.
cIudes Provisions to Make Good
the Certain Loss In
Revenue


every resident Of the United States
who earns more than $4,000 a year
to pay tax OF l per cent on his earn.
ings In excess of the exemption.
This would no; require the man
who earns only $4,000 year to pay
tax, but 1t would demand that the
individual who earned $41OO, for ex-
ample to pay into the government
treasury an annual tax of per cent
on 800, or 81.
The bill also would provide higher
rates of taxation for persons with
larger incomes, adding surtax of /
per cent additional on earnings in
excess Of $4,000; per cent addition
al on earnings in excess of $4,000
and per cent additional on earnings
in excess of 100000.
Surtax Provisions
Under the surtaX provisions, the
man who earns only $4,000 would
pay 10 the government each year at
the rate of / per cent on $4,000
$4,000 exempt, or $3.50. If he earns
100000 he would pay 1 per cent on
$4,000, still and 2 per cent on $4,000
thus making his annual tax $3.50.
The person with $4,000 income
would pay 1 per cent on $4,000 and
2 per cent on 100000 total OF
SEQ. The man with an income Of
100000 would be required to paY
per cent on $4,000, 2 per cent on
100000 and 3 per cent on $4,000,
bringing his total income tax to
s2260. The individual with net in
come of s1,OOO,OOO would pay this
$1,000 on his first 100000 and in al.
dition he would pay 4 per cent on
100000, which would bring MS ,otal
tax to $3s,26O.
Corporation Tax Stands
The bill also would re-enact the
present corporation tax law imposing
a l per cent tax on the earnings of
corporations. stock companies, insur-
ance companies and the like, but !.
would exempt partnerships This is
4 fiat tax, there being no gradua,ed
scale as the earnings increase. The
few changes from tho present corpor-
alton tax act concern chiefly the time
of making returns and the time for
collection.
The bill also includes under its pro-
visions the property and earnings in
this country of persons who live
abroad.
1t is estimated by members of the
ways and means committee that ap.
proxlmately $$1OO,OOO,OOO IN revenue
may be derived from this new tax,
including the corporation TAX, that
amount making up for the deficit in
revenues to be derived from imports
by virtue of the greatly reduced tar.
iff rates and the transfer to the free
list of articles that are crassed as
necessaries of living.
Law Is Drastic
Incomes of taxable persons shall
include gains, profits and income de.
rived from salaries, wages or com.
pensation for personal service of
whatever kind and in what ever form
paid, or from professions, vocations,
business, trade, commerce or sales or
dealings In property also from inter-
est, rent, dividends, securities in
come from but not the value OF prop
erty acquired by bequest devise or
descent, and also proceeds OF life in.
surance policies paid upon death of
persons insured.
The bill allows rs deductions in
computing net income all necessary
expenses actually incurred In carry
ing on any business, not including
personal living or family expenses,
interest accrued and payable within |
the year by taxable person on In
debtedness; all national, state, coun.
ty' school and municipal taxes, not
including local benefit taxes; losses
incurred in trade or from fires storms
or shipwreck not compensated by in.
surance or otherwise; debts actually
ascertsined as worthless and charged
on; also reasonable allowance for
wear and tear on property, but no de-
ductlon will be allowed for expenses
of restoration or Improvements made
to increase property valus.
Exceptions Made
1t excerpts also, in computing net
income, amounts received rs diyi.
dends upon the stock Of any corpora.