The Owosso times. (Owosso, Mich.) 1897-1926, 1913-10-24
INCOME TAX PROVISIONS

visions Of the new income tax Law VA
was prepared by Judge Hull, authoc or
the bill:
Under the new income. tax law every
citizen whose net income exceeds g essI
will be required to pay normal tax af
per cent upon such excess Howescc.
for the year 1918 the tax will be meak-
ured by the net income accruing frum
March to December 81. The taxsaysc
whose annual net income exceeds &a,0g2
for the year 1913 will therefore only 5s
taxed on that portion accruing frum
March to December 81 in excess uf
~, 500 for an individual and $3,3s1Ss
for married persons. The normal 6sx
of per cent applies from the lowest a
the highest taxable income. Each 1az-
atle person will be furnished blank rs
turn by the district collector or q ds-
putty, which such taxpayer wilt ex
required to properly fill out and resuru
to the Office of the collector of the die
trict in which he resides between Jsxu~
ary ! and March 1. 1914. If any 6ar~
payer should fail to receive such biGaS,
he will be required, under penalty, St
apply to the collector or deputy foe g.
blank return. Blanks will probably o.
on deposit with most postmasters sr
the convenience of the taxpayer.
1.-THE Treasury regulations soon 10 lle,
prepared will make clear to every tsz-
payer the requirements of the law aIat
its application to income derived frrcr
the various kinds of business. AaE
person who keeps familiar with ts
business affairs during the year to TIE
extent that at its end he knows with
reasonable accuracy the amount OF &ix
aggregate annual profits, the matter Gf
executing his tax return would be bota
simple and convenient.
"The statutory exemption of S3,sM
is allowed for personal living or family
expenses; however, this and other graB
income for which special deductions &es
allowed by the law must be. embrseet
in the return of gross income. and &ax
Commissioner of Internal Revenue wtg
make these deductions when he asseasex
and computes the tax. Each taxpayer
will be notified of the amount Of 0sx.
due by June 1, 1914, and will be ns-
quired to make payment by June 81
1914.
''The normal tax upon individuals a
assessed and collected by either one or
both of two methods, namely, persdG;ss
return of the taxpayer, and deduction
and payment at the source of the iz>
come. For the year 1913 all SUCH Ter
dividual taxpayers will make a persad-
al return of income for the purpose at
the assessment and payment of the tar
except as to that portion of such in
come from which the tax is deduessd
and withheld at the source during Gz.
months of November and Decembsc.
1913. This latter method of ASSESSING
and collecting the tax only relates &c
fixed annual or periodical income ez-
ceeding $3, 600 per annum, such as fxe&
annual or periodical interest, sslscss,
rent, royalties, partnership profits, aud
so forth. Under the provisions of Gax
law this method requiring tax to se
withheld at the source does not tsO
effect until November /. The esx
withheld upon any amount of taIehSe
income during November or Decem kec
will only be per cent of such incoMs
exceeding $4,000. This method of wi6ss
holding the tax upon income in eI~sa
of SO, 600 contains one exception, wtricd
relates to interest on corporate bop6s
and other like indebtedness, but it foes
not embrace interest paid by banks 81
depositors or interest upon notes or like
obligations unsecured bysmortgaee ar
deed of trust The per cent tax apGC
such interest accruing to all individSG
bondholders will be withheld by tie
debtor corporation or it's paying agent
and paid to the Government, esex
though an individuals income is under
$4,000.
IF the income Of a person is unSa
$3, 600, or if the tax upon same is With
held for payment at the source, or Il
the same is paid or to be paid elsewhect
in the United States, such person uas
make affidavit to such fact, and thscs,
} upon no return will be required. Hoe
ever, this does not mean that all peopts
will thus have to make affidavit; oasy
: those whom the collector or his depaty
upon reasonable grounds might be,ie~S
were subject to tax would make afE
davit.
Below is given synopsis of theuev
law as it relates to the taxation of iu-
dividuals. The corporation.ta pcs
visions are not synopsized, for the res
son that they are substantially coz
tinuation of the present corporatia'
excise tax laws.
INCOME TAX-PERSONAL.
Z INCOMES COVERED.