Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-04-07
BIG INCOMES HIT BY
PROPOSED TAX PLAN
lcontlpued from FIrst Page.l

1t Establishes a system of collection
of the tax at its source, requiring all
persons, firms, copartnerships, COM
panies, corporations, joint stock COM
panies, associations or insurance com
panies, and all trustees, executors, ad-
illustrators, receivers. etc, and OFF,
GERS and employees of the United
States having the control or dis
posal of salaries. wages, interest and
other profits and income of another
person, to withhold and pay to the
collector of internal revenue the
amount of income tax due from such
person. All such persons or firms are
made personally liable for such tax.
Persons or corporations liable to
make return on incomes who fail to
do so at specified time, are made
liable to a fine not exceeding $500, and
the penalty for false or fraudulent
returns is fixed at $1,000 or imprison-
ment not exceeding one year, or both.
In formula ting this additional inn
post" said Chairman Underwood in
his report, THE attempt has been
made to provide not only source Of
revenue, but also means of redress
ing in some measure the unequal tax
burdens which result from the prac-
tise of basing the Federal income en-
tirely upon customs and internal reve-
nue. duties This is a system of tax
alton which inevitably throws the
burden of supporting the government
upon the shoulders of the consumers.
1t CORRESPONDENCE exempts the men
of larger income, whose. consumption
of the ordinary necessaries of life is
subject to tariff taxation in far less
aggregate degree than is that of the
smaller income earners, who expend
the greater proportion of their re-
sources for the ordinary necessities
of life
Speaking of the principle of tax
alton laid down and the graduated
system proposed, Mr.. Underwood de-
clared
1.-THE progressive principle already
has been sustained by the Supreme
Court of the United States in the in
heritance tax cases, and there can be
no doubt that the same principle APP
plies to the income tax included in
this bill, and will be fully upheld
Owing to defects in personal property
taxation the larger incomes in the
United States have for many years
been able to escape with less than
their share of the general burden of
taxation, and this inequity will be,
it is believed, in part overcome by
the plan proposed"
The bill provides that all taxable
persons shall be notified of the
amount for which they are liable
under the law on or before the first
day of June of each year and as
sessments be paid on or before June
so. For delay in making payments,
and ten days after notice there shall
be added the sum of per cent. on
the amount of tax unpaid and inter
est at the rate of l per cent month
from the time the tax fell due.
The corporation tax provision, it is
directed, shall be computed upon in
come for the year ending December
81, 1913 and for each calendar year
thereafter. 1t is provided, however,
that corporations may designate the
last day of any month as the day OF
the closing of the fiscal year and may
have the tax computed on the basis
of net income ending on its desig-
mated day.
All labor agricultural, horticultural,
fraternal. religious and mutual bene-
fit societies are made exempt from
this proposed tax.