The Dawson news. (Dawson, Ga.) 1889-current, 1913-10-03
TO EXPLAIN INCOME TAX LAW
TREASURY DEPARTMENT PRE-
PARES FLOOD OF QUESTIONS.
Author Says Levy Is Divided Into
Two Phases, and Makes an Inter-
esting Explanation.


esting Explanation.
WASHINGTON, D. C.-The treas
ury department is preparing for
flood of questions concerning the new
income tax realizing that this feature
of the tariff bill about to become a
law strikes more intimately at the
tax paying citizen than do the indi-
rect taxes collected through customs
duties.
One of the first steps taken will
be to distribute income tax blanks
through postoffices, internal revenue
offices and other federal agencies.
However, the fact that one does
not receive a blank or a request to
pay the tax will not exempt taxa
BILE person from the penalties of the
law
Hull Explains the Law.
Representative Cordell Hull of
Tennessee, who drew the income tax
provision of the tariff bill, today
made public a detailed explanation
of the tax plan affecting the indi-
vidual citizen.
THE treasury regulations soon to
be prepared will make clear to ev-
cry tax payer the requirements OF
the law and its application to income
derived from the various kinds of
business" said Mr.. Hull amy per-
son who keeps familiar with his bust
ness affairs during 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 100000 Wher-
ever the income tax is paid at the
source by a corporation for its en-
Iployes or in similar cases, only the
one per cent normal is so paid. The
| individual has to pay any additional
tax himself. The provision of the
law requiring the tax to be withheld
at the source does not take effect
until Nov. /, 1913.
Citizens to Make Returns.
For the first year the citizens will
make return to the local internal rev.
enue collector before March l, 1914,
as to his earnings before March l,
1913. to the end OF this year. The
collector will notify him June 1 how
much he owes and the tax must be
paid by June 80. After next year
the tax will apply on the full calen-
dar year.
"'If the income of person is under
| SO, 900 or if the tax on same is with
held for payment at the source, or if
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 cit
liens 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 including all in
come from salaries or any compensa-
ton from personal services; incomes
from trades, professions, business or
commerce; from sales or dealing in
| personal property or real estate;
from interest, rent dividend and Sc
curities from all lawful business car
| ried CT for gain.
Requests Not Included.
Gifts or requests will not be CON
sidered income; nor will life insur-
ance paid to beneficiary or returned
to the insured person as a paid up
or Surrendered policy be taxable.
Interest on such property will be in
cluded as income, however.
THE amount that may be deduct
ed, from a total income includes the
cost of carrying on business, actual
losses, depreciation allowance and
tax exempt or tax paid money. Liy-
ing expenses cannot be deducted, nor
can money spent for permanent
improvements to property.
'The form that is to be filled out
Dy the taxpayer Will DS III n W IL up ~
the commissioner of internal reve-
nue.. The taxpayer will have to give
his gross revenue and then specify
and claim the deduction to which he
feels entitled. Unless a mans in
come tax is paid at the source he
must hunt up a tax blank, fill it out
and see that it finds its way to the
proper official in his district before
March /, 1914.
"Firms, corporations and the like
having the handling of interests,
rents, salaries or other portions Of
the income of any citizen are COM
PEELED to deduct the tax for the in
dividual and pay it to the govern
ment"