The Raymer enterprise., 1913-10-09
Interest from state, municipal o.
government bonds.

uoWeNeI, tual tne taXaDle person must
make return to the internal revenue
collector for his entire met income"
and exemptions claimed under the law
must be submitted to the federal off,
GERS for them to determine upon their
reasonableness or legality.
The amount of the income tax, as
finally agreed upon. follows:
From $4,000 to $4,000, per cent:
from $4,000 to $4,000, 2 per cent;
from $4,000 to $4,000, per cent;
from $4,000 to 100000, per cent:
s1OO, 900 to s250,0O0, per cent; $780,
900 to 100000. per cent; above
100000, per cent.
A single man with an income Of
$4,000, for example. would pay per
cent on $4,000 and per cent on $500.
a. total tax Of s270. II married, the
first tax Of per cent. would apply to
only $4,000 of the income.
Ready to Answer Questions.
The treasury department is prepar.
ing for flood of questions about the
new income tax realizing that this
feature Of the tariff bill about to be-
come law strikes more intimately at
the tax paying citizen than do the
indirect taxes collected through the
customs duties.
Representative Cordell Hull OF Ten
nessee, who drew the income tax pro-
vision Of the tariff bill which will soon
become law. made public detailed
explanation Of the tax plan as 1t will
touch the individual citizen.
''The treasury regulations soon to
be prepared will make clear to every
taxpayer the requirements Of the law
and Its application to income derived
from the various kinds Of business"
Mr.. Hull said. ANY person who keeps
familiar with his business affairs. dur
ing the year should have no difficulty
in executing his tax return.
How Tax Is Divided.
"rhe income tax is divided into two
phases, the normal tax Of one per
cent. on the whole income above
$4,000, and the additional tax that be.
gins with an extra one per cent, above
$4,000 and is graduated to six per
cent. above $5O0,0O0. Wherever the
income tax is paid at the source by a
corporation for its employees or in simi.
lar cases. only the one per cent. nor.
NAL tax Is SO paid.
THE individual has to pay any a
ditional tax himself. The provisions
Of the law requiring the tax to be
withheld at the source does not take
effect until November !, 1913.
For the first year the citizen will
make return to the local internal reve
nue. collector before March /. 1914
as to his earnings from March /. 1918
to the end Of this year. The collector
will notify him June l how much
he owes and the tax must be pait
by June 30. After next year the Ia,
will apply on the full calendar year.
III the income OF person is undel
$4,000, or II the tax upon same II
withheld for payment at the source
or II the same is to be paid elsewhere
In the United States. affidavit may b
made to such fact and thereupon NJ
return will be required.
Covers Incomes Of All Citizens.
The tax covers all incomes of citi
zens Of the United States, whether liv
ing here or abroad; those Of foreign
ers living In the United States. ant
the net incomes from property owned
or business carried on In the United
States by persons living abroad
THE net income includes all in
come from salaries or any compensa
ton for personal services; incomes
from trades, professions business. o.
commerce; from sales or dealings IL
personal property or real estate; from
interest. rent, dividends from securi
ties; for all business carried on To-
gain.
Requests will not be considered in
come, nor will life insurance paid t
beneficiary or returned to the in
sured person as paid up or sur
rendered policy be taxable. Interes
on such property will be included al
income, however.
THE amount that may be deducted
from a total income includes the cos
OF carrying on business. actual losses
depreciation allowances, and tax ex
empt or tax paid money. Living ex
penses cannot be deducted, nor caI
money spent for permanent improve
ments to property.
Forms to Be Ready Soon.
THE form that is to be filed on
by the taxpayer will be drawn vi
soon by the commissioner Of interna
revenue. The taxpayer will have t
give his gross revenue and then speci
fy and claim the deductions to which
he feels entitled.
Unless a mans income tax Is 'pait
at the source he must hunt up ta'
blank. fill It out, and see that It find
Its way 20 the proper federal officla
In his district before March !, 1914.
Firms. corporations, and the lik'
having the handling Of interest, rents
salaries. or other portions Of the In
come OF any citizen are compelled L
deduct the tax for the Individual an,