Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-10-03
#iseellaneous geaains.
INCOME TAX LAW
Author Of the Bill Makes Full Expla-
nation,


nation.
The treasury department Is prepar-
ing for a flood Of questions concerning
the new income tax, realizing that this
feature of the tariff bill about to be-
come law, strikes more intimately at
the tax-paying citizen than do the in
direct taxes collected through customs
duties.
One of the first steps will be to dis
tribute income tax blanks through
postoffices, internal revenue offices and
other Federal agencies.
However, the fact that blank or a
request to pay the tax has not been
received will not exempt a taxable per-
son from the penalties Of the law.
Representative Hull Of Tennessee
who drew the income tax provision OF
the bill, last Thursday made public a
detailed explanation Of the tax plan as
1t will touch the individual citizen.
"The treasury regulations soon to
be prepared will make clear to every
tax payer the requirements Of the law
and its application to income derived
from the various kinds Of business
said Mr.. Hull. ANY person who keeps
familiar with his business affairs dur
ing the year should have no difficulty
in executing his tax return.
"The income tax Is divided Into two
phases, the normal tax of one per cent
on the whole income above $4,000 and
the additional tax that begins with an
extra one per cent above $4,000 and Is
graduated to six per cent above $780,
900. Wherever the income tax Is paid
at the source by corporation for It's
employees or in similar cases. only the
one per cent normal is so paid. The
Individual has to pay any additional
tax himself The provisions OF the
law requiring the tax to be withheld al
the source does not take effect until
November 1, 1913.
For the first year the citizen VIII
make return to the local internal rev.
enue collector before March 1, 1914, as
to his earnings from March 1, 1913 to
the end of this year. The collector will
notify him June / 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.
'Tf the income Of a person is under
$4,000, or If the tax on same is with
held for payment at the source, or II
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.
"The tax covers all incomes Of citi-
zens Of the United States, whether
living here or abroad; those Of for
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
comes 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. dividend and securities
from all lawful business carried on for
gain. .s. s.
"Bequests will not be considered in
comes, nor will life insurance paid to
a beneficiary or returned to the insur-
ed person as paid up or surrender
ed policy be taxable. Interest on such
property will be included as income,
however. t..
"The amount that may be deducted
from a total income includes the cost
Of carrying on business, actual losses,
depreciation allowances and tax ex-
empt or tax paid money.
Living expenses cannot be deduct
ed, nor can money spent for permanent
to property.
1.-The form that is to be filled out
by the taxpayer soon will be drawn
up by the commissioner Of internal
revenue. The taxpayer will have to
give his gross revenue and then speci-
fy and claim the deductions to which
he feels entitled. Unless a mans in
come tax is paid at the source he
must hunt up a tax blank, fill 1t out
and see that it finds it's way to the
proper official in his district before
March 1, 1914.
Firms, corporations and the like
having the handling Of interests, rents,
salaries or other portions Of the in
come Of any citizen are compelled to
deduct the tax for the individual and
pay it to the government.
1.-The individual then will get re-
ceipt showing he has paid his tax"