The Caldwell watchman. (Columbia, La.) 1885-1946, 1913-10-10
MANY WILL PAY INCOME TAX
Ess,mated That 100000 Persons Are
A"ecsed, and That ss2,2ss, COO Will
Be Raised,
INCOME TAX SCHEDULE.

| "SoMe lax SCHEDULE.
5000 to $4,000. 4 per cen,
$4,000 to $4,000. .......2 per cen,
$4,000 to $4,000. 3 Der cen,
$4,000 to 100000. -. :. q per cen,
$4,000 to s2so,ooo. .....5 per cent
S2so'ooo to s5oo,ooo. ......e per cent
More than $500, 1000. ......7 per cen,
MISUNDERSTANDING to esti.
mates completed by the treasury ex-
perts, 100000 American citizens must
keep such accurate account Of their
incomes this year that they will be
aoie TO report to the income tax col
rector next spring exactly how much
they owe the government under the
new income tax law.
so tar as the taxable American is
concerned, the income tax law Is now
practically in force against him. While
the tariff law in which the law is EN-.
bodied will not be signed until next
week, the first returns do not have to
be made to the internal revenue col.
lectors before March 1, 1914. But when
the returns are made they will cov-
er the income OF citizens from March
l, 1913, to December 81, and the first
payment Of tax will be for money re-
ceived during this period.
Every single person (citizen or for.
eign resident) whose annual income
exceeds $4,000, and every married per-
son with an income above $4,000, Is
expected to report his or her re-
ceipts In detail to the government
agents March l Of each year.
To Produce ss2,ooo,0oo.
The estimate completed indicates
that the income tax will produce $780,
29S,000 from the 425, 900 persons taxed.
To this will be added the $35,OOO,0OO
or more produced by the present cor
poration tax, which Is continued as
part Of the law.
President Wilson, the federal judges
Of the Supreme court now holding Of
fee and employees "of a state or any
political subdivision thereof" are the
only persons specifically exempted
from the tax by the new law. The
president and judges now in Office,
were made exempt to escape any ques-
tons Of the constitutionality of the
law, and their successors in Office will
10 compelled to pay the tax.
)sT1Ejrst Burden Is on Citizen.
~ seHerafA srsfraso~Hxss~p.~AsA.SAs
gMe close study to the new law in
the next few months, as the first bur-
den Of the tax payment rests with the
individual citizen, and his failure to
report his income is punishable by a
fine.
1t is admitted that when first re-
turns are made many taxable persons
probably will escape payments, but
with each year the governments lists
of persons with taxable incomes will
be made more nearly complete.
Methods Of Collecting Tax.
Two primary methods Of collecting
the tax are contained in the law. One
is that the individual return made by
the citizen; the other the returns by
corporations and other employers who
pay their employees taxes at the
source" Under the law as it will be
signed by President Wilson next week,
every large company employing labor
will be compelled to report any regu'
lar salaries it pays in excess OF the
$4,000 figures, and will pay the taxes
for its employees and deduct the tax
from their pay envelopes.
This payment at the source will
apply to salaries, rents, interests, roy
alties, partnership profits and some
other sources of income, and persons
receiving such incomes must be pre-
pared to show that the money has
paid Its tax at its source.
In figuring up his net income for
the taxpayer, the American business
man, after deducting $4,000 for him.
self, or $4,000, if married, will nave
the right to claim the following addl-
tional exemptions:
Necessary expense of carrying on
business, not including personal, living
or family expenses.
Interest paid out Of Indebtedness.
National, state, county, school or
municipal taxes paid within the year
Trade losses, or storm or nre
losses, not covered by insurance.
Worthless debts charged OF during
the year.
A reasonable allowance for the DE-
probation of property.
Dividends from companies whose III
comes have already been taxed.