Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-11-01
\ REVOLUTION \RN HIN NIE
RAISING POWER BEGINS or
EHATIONs TODNl.
HOLDING COMPANIES BUSY



enue raising power conferred ON the
American government since it's foun-
ddtlon, starts tomorrow upon the path
that Is to bring millions into thu pub
lie treasury. Although an income tax
has been agitated for many years and
ITS existence was assured by an amend
mcnt to the constitution aprrcd To bN
the necessary number early last spring
IT'S collection by a government which
has not tried ii will strain the re
sources of the fertile minds in the
treasury department ana viii be- ac-
companlcd, 1t is not doubted here,
with thousand complications not
now foresceu.
Ever since President Wilson signed
the prIff bin, with its income tax
proposition early In the present
month The machinery of the treas
uIY department has been ut work
upon the regulations that are to GOV
ern collection of the tax. The task
has kept Assistant Secretary VIII
llama, Deputy Commissioner OF In
ternal Revenue Speer and other Of
licers constantly a. work. and the
end is not In sight.
Mr.. Williams said tonight that the
regulations of the department were
not difficult to understand but some
other officials in the department do
not agree, Thousands Of letters and
telegrams bringing up for settlement
points in the new law have poured
into the departm nt They have
come from evorv conceivable source
ana added 10 the lanor 81 making reg
ulations have made the task of the
experts one not to be envied
No one in the treasury department
believes the regulations so far form
ulated are absolutely perfect but
they viii stand until some one proves
they should be changed and officials
are not inclined to believe that OK
pert lawyers employed by big cor
poratlons particularly concerned with
collection 'at the source" of income
on bonds, mortgages, salaries. etc,
have failed to understand them.
Since tho administration began
framing an income tax law the talk
has gone the rounds in Washington
that it would lead TO many fights,
and as the tariff bill progressed
through the senate many a senator
quietly expressed the view that every
line Of the income tax provision was
subject for a lawsuit with the law
suits the treasury department has llt-
tie concern. 1t is not looking for
them its business Is to go out and
get the money and that is what II Is
trying to do.
Officials believe that the regula-
tons they have put out are framed
not with an idea of causing trouble
70 those who must pay, but in the
only way they could be framed to
safeguard tNe governments interest.
The man in the street W no knows
he makes more than $4,000 year,
and who is practically responsible for
his share Of the tax does not need to
begin worrying about his payment for
the present.
The operation of the law tomor-
row affects only banks, corporations
and others responsible for payment
Of bonds, mortgages, salaries, etc For
such part as they are bound by the
law they must withhold "at the
source" The amounts so withheld
are not payable Immediately to the
treasury and the money from the tax
will not begin flowing into the treas
ury vaults for many months.
The tax for 1918 is to be corrected
from March |, shortly after the con-
stitutional amendment was ratified,
until December 81. Holding agents
however. must begin deducting the
normal tax OF | one cent at the source
tomorrow, Withholding it for Novem-
Der and December, with certain ex-
ceptions. The individual reporting his
year makes his return to the colec-
tor OF internal revenue in his dis
trict next March.
The treasury department tonight is
sued further regulations affecting coll
lections at the source Of income. It's
synopsis follows:
Normal tax OF ! per cent is to be
withheld at the source where the in
come originates.
All positions forms, organizations
having the custody, disposal or paw
ment of any annual income, profits
or gains, are required TO withhold tax
as exempted by law.
The following income is exempt
from normal tax:
Dividends on capital stock or from
the net earnings of corporations and
like organizations that pay the norm
al tax of / per cent on its net in
come.
Proceeds from life insurance com
panles. except annual interest pay
ments, in excess Of $4,000.
Incomes OF individuals which is
not fixed or certain, such as income
Of farmers, merchants. agents COM