The Madison journal. (Tallulah, Madison Parish, La.) 1888-current, 1913-04-19

revenues to be derived from imports
by virtue of the greatly reduced tariff
and the transfer to the free list of
articles that are classed as necessa-
ries of living.
Incomes Of taxable persons shall
include gains, profits and income de-
rived from salaries, wages or COM
pensation for personal service of
whatever kind and in whatever form
paid. or from professions, vocations,
business. trade, commerce or sales or
dealings in property, also from inter
est, rent, dividends, securities, includ-
ing income from property, income
from but not the value of property
acquired by beQuest, devise or de-
scent, and also proceeds Of life insur-
ance policies paid upon death Of per
sons insured
Provision Made for Deductions.
The bill allows as deductions in
computing net income all necessary
expenses actually incurred In carrying
on any business, not including per-
sonal living or family expenses. inter
est accrued and payable within the
| year by a taxable person on indebted
ness all national, state, county,
school and municipal taxes. not in
Guiding local benefit taxes; losses in
CURED in trade or from fires, storms
or shipwreck not compensated by in
| surance or otherwise; debts actually
| ascertained as worthless and charged
off: also reasonable allowance for
wear and tear on property: but no de-
duction will be allowed for expense
Of restoration or improvements made
to increase property value.
It excerpts also, in computing net IN
come, amounts received as dividends
upon the stock Of any corporation,
joint stock company. association or
insurance company which is taxable
upon it's net income under the cor
poration tax provision Of the bill.
The bill excludes the compensation
Of the president Of the United States
during his term, that Of judges Of the
Supreme and inferior courts OF the
United States, and compensation OF
all officers and employees of a state or
any political subdivision thereof.
System Of Collection Framed.
It 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 disposal
Of salaries, wages. interest and othel
profits and income Of another person
to withhold and gay to the collector
Of internal revenue the amount OF In
come tax due from such person. AL
such persons or firms are made per
sonally liable for such tar.
Persons or corporations liable Il
make return on incomes who fail II
do SO at a specified time, are mad
liable to a fine not exceeding $500 ant
the penalty for false or fraudulent re
turns is fixed at $1,000 or imprison
ment not exceeding one year. or both
"In formulating this additional i'm
rost," said Chairman Underwood II
his report, "the attempt has beel
made to provide not only a source o
revenue, but also q means OF redress
ing in some measure the unequal Ia
burdens which result from the prae
tiee of basing the federal income er
tirely upon customs and internal reve
l l., NJ q
alton which inevitably throws the bul
den of supporting the government W
! on the shoulders Of the consumer
II correspondingly exempts the me
. of larger income. whose consumptio
4 of the ordinary necessaries Of life
: subject to tariff taxation in a far les
! aggregate degree than is that OF small
4 er income earners, who eXpend tn
a greater proportion Of their resource
= for the ordinary necessaries Of life
Underwood Defends Plan.
> Speaking of the principle OF taxi
ton laid down and the graduated sy'
: tenn proposed, Mr.. Underwood d.
clared:
THE progressive principle alread
has been sustained by the Suprem
= court Of the United States In the II
heritance tax cases and there can B
;, no doubt that the same principle a.
q plies to the income tax included
this bill and will be fully uphel
should 1t ever be called into question
Owing to defects in personal propert
taxation, the larger incomes In tn
United States have for many veal
e been able to escape with less tina
u their share Of the general burden
), taxation, and this inequity will be.
j is believed, in part overcome by Il
!, plan proposed" :.
II The bill provides that all taxab
" persons shall be notified of the amour
>. for which they are liable under II
Il law on or before the LIST day OF Jul
70 of each year and assessments must
y maid on or before June 80. For dels
n In making payments and ten days al
w. er notice. there shall be added Il
Is sum Of per cent. Of the amount
le tax unpaid and interest at the rate
" / per cent. a month from the time q
. tax fell due.
The corporation tax provision, 1t
III directed, shall be computed upon
come for the year ending Decemb
le 81. 1918, and for each calendar We
y thereafter. It is provided. howeve
VI that corporations may designate Z
r. last day Of any month as the day
1t the closing Of the fiscal year and m
10 have Tho tox committed on the bas