Daily capital journal. (Salem, Oregon) 1903-1919, 1913-11-19
SOME FEATURES OF
| INCOME TAX MEASURE
Man Who Pays Rent of $4,000 Per Year
for Building Is Responsible for
Revenue Is Ruling.
STATEMENTS MUST BE FILED
BY CORPORATIONS AND FIRMS
Each Person Having Taxable Income
Must Get Blank From Collector
and State Net Income.
BY BOND P. GEDDEs.
(Staff Correspondent OF United Press.)

Washington, Nov. 19.-"Get wise, :"
and soon, too, to the new income tax
law-whether you are among the ia.
vored few with an annual income Of
over $4,000 or not. This is the advice
Of treaury officials today. Their net
to cash in on the new tax is now being
spread. 1t may cost you money if you
don't understand and obey the provi-
sions of the new law, even though you
yourself may be exempt from its taxa
ton. Most people believe that, be-
cause they don t earn as much as $4,000
they needn't pay any attention to the
new law. This may prove costly
mistake. 1t effects vitality thousands
of persons and business firms, in addi-
tion to the small minority with ''swol-
len fortune" who must pay the taxes
For instance, if you rent a farm or a
building for your business upon which
the rental is over $4,000, you-not the
owner of the farm or building-are di-
rectly, financially liable to Uncle Sam
for payment of part of the landlord 5
income tax every year. You must pay
this tax to the government, You are
held personally liable for it by Uncle
Sam. You must "hold out" on your
landlord the exact amount of the tax
from your rent and pay it to the dis
trict internal revenue collector. This
is feature to which federal officials
are attempting to direct popular atten-
tion today. They are not worrying
about "tax dodgers" They do not
fear that they will overlook or miss
any taxes coming to your Uncle Sam
Iuel. But they do wish every person to
know what he may be personally re-
sponsible for payment of some part Of
the new tax upon his landlords S rents
or profits, even though the tenant him
self is not taxable for one cent.
Must "Hold Out" Tax.
Today--right now-thousands Of in.
ternal revenue collectors all over the
country are compiling lists of persons
who are probably liable for an in
come tax The law provides that after
November !, persons who pay rentals,
etc, aggregatiDg over $4,000 year
must begin to "hold out" the proper
income tax of their landlords for 1913.
This year taxes run from March l that
is, the income tax is to be assessed for
only ten months Of 1913. Hereafter,
the tax must be paid for the full cal.
endar year. Here is how it will be col.
lected:
Corporations, firms, partnerships,
etc, must file sworn statements each
year before March 81 Of the fixed.term
salaries, wages, dividends and the
profits paid to each person during the
preceding year in excess Of $4,000. Be-
fore June l, the district internal reve.
nue. collectors win notify every firm,
ETC., Of the exact amount Of the taxes
due, which must be paid before June
30, subject TO the penalty Of per cent
Of the tax and per cent additional
monthly If further delayed Three
thousand dollars, for single persons,
and four thousand for n married cou.
pie, is exempt from taxation. The
straight, "normal" rate is l per cent
annually on all incomes in excess Of the
exempt sums. That is, IL you are
bachelor and earn $4,000, you must pay
] per cent taxes upon $600-not upon
$4,000. If you are married and living
with your wife or husband, as the case
may be, you must pay per cent upon
all incomes over $4,000. II you are on
a fixed, stated salary, monthly or an
nually, your employer must deduct ]
per cent taxes on all income over the
$4,000 "bachelor" or $4,000 "wedded "
exemption amounts The penalty for
failure TO make q return by anyone
who Is not exempt is fine Of $50 TO
$1,000. A fine up to $4,000 and impris.
onment for not exceeding one year are
the penalties for making false or
fraudulent returns.
Must Fill Out Blank.
Uncle Sam viii deal directly with
the individual, too. Each person hay.
ing a taxable income (less oxemptions)
must secure blank form from the rev.
enuo collectors office and, under oath,
state his net income. IIe viii be mott.
fled Of the proper tsv by the collector.
Notices warning all persons whose in.
comes arc over $4,000 to secure the
printed blanks will soon be posted In
every post office and federal building.
To ascertain whose incomesg arc taxa.
BILE, the collectors viii check up by bay.
ing aeaasa 20 hank and corporntiOu