The Barre daily times. (Barre, Vt.) 1897-1959, 1913-04-07
INCOMES OVER $4,000
WOULD BE TAXED
Features of Income Tax Proposal Provide
Graduated Scale for Incomes Of
Larger Amount.

1 Washington, April 7. Included in tht
Democratic tariff revision bill INTRODUCED
in Congress to-day is an income tax sec
tion which would require every resident
OF the United States, who earns NOR,
| than $4,000 a year to pay tax of one
per cent on his earnings in excess of the
exemption.
The bill also would provide higher
rates OF taxation for persons with larger
| incomes, adding a surtaX OF one per cent
additional on earnings in excess of S20.-
000 two per cent additional on earnings
in excess of $4,000 and 3 per cent addi-
tional on earnings in excess of 100000
Under the surtax publications the
man who earns only $4,000 would pay
to the government each year at the rate
of one per cent. on $4,000 $4,000 eX-
emptl or $l60. If he earns 100000 he
would pay one per cent on $4,000 still,
and per cent on $4,000. thus making
his annual tax $500 The individual with
a net income OF million would pay four
per cent on 100000 which would bring
his total tax to $685. ,260.
The bill also would re-enact the pres
ent corporation tax law imposing one
per cent tax on the earnings of corpora
tions, stock companies, insurance COM
panies and the like but it would exempt
partnerships. This is a fiat tax, there
being no graduated scale as the earn
ings increase.
1t is estimated by the ways and means
committee that $l00,000,000 in revenue
may be derived from this new tax in
cluding the corporation tax that amount
L., h. %,
be derived from imports by the greatly
reduced tariff rates and the transfer to
the free list of articles that are classed
as necessities.
What Is Taxable.
Incomes of taxable persons shall in
clude gains, profits and income derived
from salaries, wages or compensation
for personal service of whatever kind and
in whatever form paid, or from profes-
sions, vocations, businesses, trade, COM
merce or sales or dealings in property
also from interest, rent, dividends in
rluding income from property income
from but not the value of property ac-
luired by bequest. devise or descent and
also proceeds of life insurance policies
paid upon death of persons insured.
Deductions Allowed.
The bill allows as deductions including
net incomes all necessary expenses
actually incurred in carrying on any bus /
ness not including personal living or /
amily expenses, interest accrued and /
payable within the year by a taxable 1
,erson on Indebtedness all national state. 4
ounty. school and municipal taxes, not
local benefit tax; losses in
urred in trade or from fires. storms or
hpwreck not compensated by Insurance
II otherwise; debts actually ascertained
: worthless and charged off; also reas-
nable allowances for wear and tear on
roperty. but no deduction will be al
owed for expense OF restoration or inn
rovements made to increase property
alue
It eNcepts also in computing net in
omes. amount received a. dividends
pom the stock Of any corporation, joint
took company. association OF insurance
1mpany which i taxable upon it net
loome under the corporation tax pro
ision Of the bill
Tho bin EXCLUDES the compensation Of
be president of the United states during
j. term. judges of the supreme and in 1
.fior courts of thc United State and !
rmpeusstiou e sll ofFiccrs and employees :
/ state Or any political sub division Z
lfrepf. J..
System Of collectioa- I
II establishes q system OF collection Of 1