The Mobridge news. [volume] (Mobridge, Walworth Co., S.D.) 190?-1917, 1913-04-18

Dy NhlAe OF lne greatly EeuuCeu tdIlu
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
| cludng 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
| of; 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.
1t excepts 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 its 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, opartnerships, com
panies, corporations, joint stock com
panies. associations or insurance com
panies, and all trustees executors. ad-
ministrators. receivers. etc, and Off
GERS and employees OF the United
States having the control or disposal
OF salaries, wages, interest and other
profits and income OF another person
to withhold and pay to the collector
Of internal revenue the amount OF In
come tax due from such person. All
such persons or firms are made per
sonally liable for such tax.
| Persons or corporations liable to
make return on incomes who fail TO
do so at a specified time, are made
liable TO fine not exceeding $500 and
the penalty for false or fraudulent re-
turns is fixed at $1,000 or imprison-
ment not exceeding one year, or both.
I'm formulating this additional i'm
post" said Chairman Underwood in
his report, the attempt has been
made to provile not only source OF
revenue, but also a means OF redress
ing in some measure the unequal tax
| burdens which result from the prac-
tice Of basing the federal income en-
tirely upon customs and internal reve-
nue. duties. This is system OF tax
alton which inevitably throws the bur
| ne
on the shoulders of the consumers.
1t correspondingly eXempts the men
OF larger income whose consumption
OF the ordinary necessaries OF life Is
subject to tariff taxation in far less
aggregate degree than is that OF small
er income earners, who eXpend the
greater proportion Of their resources
for the ordinary necessaries OF life"
Underwood Defends Plan.
Speaking OF the principle OF taxa
tion laid down and the graduated 6ys-
TEN proposed. Mr.. Underwood de-
clared:
The progressive principle already
has been sustained by the Supreme
court Of the United States In the in
heritance tax cases and there can be
no doubt that the same principle APP
| plies TO the income tax included in
! this bill and will be fully upheld
| should it ever be called into question.
| Owing TO defects In personal property
taxation, the larger incomes in the
United States have for many years
been able TO escape with less than
their share Of the general burden OF
taxation, and this inequity will be, II
is believed, in part overcome by the
| plan proposed"
The bill provides that all taxable
| persons shall be notified Of the amount
for which they are liable under the
! law on or before the 1st day OF June
OF each year and assessments must be
paid on or before June 30. For delay
In making payments and ten days aft
or notice, there shall be added the
sum of per cent. OF the amount OF
tax unpaid and interest at the rate Of
per cent month from the time the
| tax fell due
The corporation tax provision. II Is
| directed, shall be computed upon In
come for the year ending December