The weekly times-record. (Valley City, N.D.) 1912-1922, 1913-10-09
FEATURES OF THE +.
INCOME TAX. Law
Minimum Exem ption Is Placed
at $4,000 Annually.
$1,000 MORE FOR FAMILIES

Additional Taxes For Incomes Allow
$4,000, Increasing Until the Maxi
mum Of 6 Per Cent Is Reached o.
The Excess Above $500, ooo-Penaitie'
For Failing to Make Reports.
The income tax feature OF the new
tariff law, made possible by the adop
tion OF an amendment to the fedora
constitution, marks new feature IL
tariff legislation. 1t is expected tC
yield an annual revenue exceeding
S1OO,OOO,O0O. which makes possible tue
reduction Of tariff duties.
Under the terms Of the new law q
AK of per cent will be levied on all
incomes in excess Of $1,000 with Ger.
ain exemptions. The bill provides
that there shall be IAN additional tax
Al per cent per annum upon the
amount by which the total net income
exceeds $4,000 and does not exceed
$50 600. and 2 per cent per annum
apon the amount by which the total
net income exceeds $4,000 and does
not exceed $4,000. 3 per cent per an
ann upon the amount by which the
t0tal net income exceeds $4,000 and
toes not exceed 100000, 4 per cent
ger annum upon the amount by which
she total net income exceeds 100000
aad does not exceed $25OOCO. ) per
sent per annum upon the amount by
which the total net income exceeds
Ea50,000 and does not exceed 500, 600
and 6 per cent per annum upon the
amount by which the total net income
exceeds 100000"
individuals to Make Returns.
Every person subject to the income
TAX must make q report Of his income
10 the collector Of internal revenue in
abe district in which he lives or in
which his business is carried on.
In defining what shall be considered
Income for taxation. the bill says:
Subject only to such exemptions
and deductions as are hereinafter al.
lowed, the net income OF a taxable
yerson shall include gains profits and
income derived from salaries, wages
Or compensation for personal service
II whatever kind and in whatever form
oaid. or from professions. vacations,
businesses. trade commerce or sales or
dealings in property, whether real or
personal. growing out Of the ownership
a. use Of or interest in real or personal
property: also from interest. rent. divi-
lends. securities or the transaction OF
any lawful business carried on for gain
~ profit or gains or profits and income
derived from any source whatever, In
aauding the income from but not the
Aalue OF property acquired by gift, be.
quest. devise or descent. provided that
The PROCEEDS OF life insuran nee policies
osid upon the death OF the person in
cured or payments made by or credited
% the insured on life insurance, en-
,towment or annuity contracts upon
ne return thereof to the insured at the
maturity Of the term mentioned in the
contract or upon surrender OF the con-
fact shall not be included as income"
The provisions Of the bill for exemp-
lions as finally agreed on are:
There shall be deducted from the
smount Of the net income of each OF
said persons. ascertained as provided
laereln. the sum Of $1,000 plus $1,000
additional II the person making the re-
barn be married man with a wife.
living with him and being herself not
taxable under the income tax law. or
MUS the sum Of 81, 900 additional II the
gaesson making the return be married
woman with husband living with her
and being himself not taxable under
he income tax law, but in no event
shall this additional exemption Of ST.
40 be deducted by both husband
nd wife,
Foreign Residents to Be Taxed.
The bill contains provisions for the
apx0ti0n OF the incomes OF citizens re-
siding in foreign countries on incomes
derived from property owned or bust
1ess carried on in the United States.
lshe bill also provides:
THAT If any person, corporation,
tDiRt stock company, association or in
aarance company liable to make the
nturn or pay the tax aforesaid shall
nef,~e or neglect to make return at
ahe time or times hereinbefore speci.
Aed in each year. such person shall be
table to penalty Of not less than $40
nor more than $1,000. Any person or
my officer Of any corporation required
" law to make. render, sign or verify
NV return who makes any false or
na1dulent return or statement with In.
tanh 20 defeat or evade the assessment
nsaasred by this section to be made
aAall be guilty Of a misdemeanor and
shall be fined not exceeding $1,000 OF
h imprisoned not exceeding one year,
~ both. ut the discretion OF the court,
Wakh the costs Of prosecution"
!she first tax Is to be levied and co.,
lSctsd on incomes from March l, 1913,
y Dec. 81, 1913. Thereafter the in
acme shall be computed for calendar
years ending with Dec. 81.
The bill also provides that the In.
come of states territories or political
subdivisions 1,all not be taxed, and
kAnro choll no M tov Iovio1 ~, S,oo,,,oa