Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-09

come to his wife
Head of Family and each of his
Cannot Dodge Law. 9or II a children
provides that the income Of husband. wife
and minor children. living together. shall
| be reckoned is one income. A wife perma-
| nently living apart from her husband is
entitled to separate income.
If the bill becomes a law as drafted
the people subject to it will have to pay
tax upon their incomes for the cal
endar year of 1919. The question has been
| raised whether or not a tax that would
be imposed upon income received prior
to the enactment of the law might not
be held unconstitutional as being retro
active. but the ways and means commit
tee thinks not.
Only those persons who enjoy a net in
come OF $500 are required TO make re-
turn OF their incomes to the collectors of
the internal revenue. Those who are re-
auired to make these returns must give
their gross incomes. their deductions and
their net incomes. making itemized state
ments of each. Double taxation is avoid
ed by provision that dividends received
from corporations and other artificial per-
sons which have paid an income tax
upon their net earnings are not to be in
cluded in returns Of net income.
IL Is PROVIDED IurIner, however, that
where person enjoys an income of less
than $4,000. and part Of it is made up of
income from dividends or other profits
subject TO taxation at the source. he can
not claim exemption for this latter part
Of his income unless he SHALL not less
than thirty days before the return Of his
income is due. file with the person who
would otherwise be required to withhold
and pay the tax for him an affidavit
claiming the benefit of such exemption.
The bill provides that returns shall be
made under oath or affirmation by March
!, that as
Returns Must sess m ents
Be Made Under Oath. 49, .ne
amount of their assessments. and that
collections shall be made before July l.
A penalty of ) per cent and interest at l
per cent a month is added for taxes not
paid within ten days OF the tax collectors
demand therefor
Any person liable to the additional
tax Is required to make a return of his
entire income. and must pay this .addi-
tional tax upon his corporate income
which has already been taxed at the nor
NAL rate before reaching his hands;
While individuals are required to -aake
returns to cover the calendar year. cor
porations and other artificial persons may
make returns for their fiscal or book
keeping year. These corporation returns
must show the amount of capital stock or
capital, the Indebtedness, the gross in
come, the operating expenses. the interest
paid, the net income. etc.
The machinery for the administration
of the income tax provided in the pro-
posed law is pract!or !. the same as that
provided for the corporation tax enacted
four years ago The same secrecy is
enjoined that is required in the case of
the CORPORATION tax The operation of the
law extends to the Philippines and TO
Porto Rico there being a provision. how
ever that such income taxes are col
lected in these insular possessions shall
go to their governments intact. Another
article of this series will deal with the
methods of administering the tax in de-
tail.
BY placing the normal tax rate at l per
cent the United States will have the low
est income tax
Lowest Rate rate OF any of the
of Any in World. countries having
national income tax laws. and lower than
all but very few of the countries having
local laws. At the same time, by fixing the
exemption at $1,000. Congress will give the
United States a higher exemption than
In, other having