The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1913-10-09

that the revenue derived thereIrOm
will approximate $S2,29S,O00.
This is the schedule:
$4,000 to $4,000, ..........1 per cent
$4,000 to $4,000. ........2 per cent
$4,000 to $4,000. .........3 per cent
$4,000 to 100000. -. "a per cent
100000 to S25o,ooo. ......5 per cent
S25oooo TO 100000. ......6 per cent
More than $500, 900. .......7 per cent
So far 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 /, 1914. But when
the returns are made they will Gov
er the income Of citizens from March
/, 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 10 report his or her re-
! ceipts in detail to the government
! agents March ! of each year.
To Produce $s2,ooo,ooo.
The estimate completed indicates
that the income tax will produce SS2,-
29S. 600 from the 425,O persons taxed.
! To this will be ADDED the $4,000, 900
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-
tions OF the constitutionality of the
law. and their successors In Office will
be compelled to pay the tax.
First Burden Is on Citizen.
The general public is expected 70
give close study to the new law in
;he 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.
II 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 viii
be made more nearly complete.
Methods Of Collecting Tax.
Two primary methods of collecting
the tax are contained In the law. On'
Is that the individual return made BY
the citizen: the other the returns By
corporations and other employers WHIT
pay their employees taxes at thu
source" Under the law as 1t will b'
signed by President Wilson next week
every large company employing labo
will be compelled to report any regu
lar salaries 1t pays in excess Of tn
$4,000 figures, and will pay the take
for its employees and deduct the Ia
from their pay envelopes.
This payment at the source" will
apply to salaries, rents, interests, roy
alties, partnership profits and som
other sources of income, and person
receiving such incomes must be pre-
pared to show that the money ha
paid it's tax at its source.
In figuring up his net income 10
, the taxpayer, the American bushes
man. after deducting $4,000 for hin
self, or $4,000, II married. will hav
the right to claim the following add
, tional exemptions:
Necessary expense OF carrying o
; business, not including personal, Twin
r OF family expenses.
Interest paid out of Indebtedness.