Arizona republican., 1913-10-08

Necessary expense of carrying on business, not including personal, living or family expenses.
 Interest paid out of indebtedness.
 National, state, county, school or municipal taxes paid within the year
 Trade losses, or storm or fire losses. not covered by insurance.
 Worthless debts charged off during the year.
 A reasonable allowance for the de preciation Of property.
 Dividends from companies whose in comes have already been taxed
 Interest from state, municipal or government bonds.
 Must be Entire "Net income"
 It is a clear provision of the law, however, that the taxable person must make return to the internal revenue collector for his entire net income" and exemptions claimed under the law must be submitted to the federal off cers for them to determine upon their reasonableness CT legality
 The amount of the income tax, as finally agreed upon. follows:
 From 5000 to $20,000, per cent; from S20.00o to $5O,000, 2 per cent; from $50,o0o to $75.O00. 9 per cent; from 375,000 10 $1o0,000, 1 per cent; $100,o00 to $250,000, 3 per cent, $25O- eco to $500.000, per cent; above s500,000, per cent.
 A single man with an income of $25.C00, for example would pay 1 per cent on S17.0o0 and ? per cent on $500 total tax of $270. If married. the first tax of 1 per cent would apply to only $16,00O of the income.
 Ready to Answer Questions.
 The treasury department is prepar- ing for flood of questions about the new income taz, 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
 One of the first steps taken to get general information before the public will be to distribute income tax blanks through pOstCHces, internal revenue officers, and other federal agencies. However. the fact that he does not re ceive a blank or request to pay the q from the penalties of the law.
 Representative Cordell Hull O. 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,' Mir. 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.
 The income tax is divided into two phases, the normal tax of one per cent on the whole income above B ,OO0. and the additional tax that be gins with an extra one per cent above $20, 900 and is graduated to six per cent above $500.00O Wherever the income tax is paid at the source by for it's employees or in sfmi- lar cases, only the one per cent nor it4di tdA lc SO paul
 The individual has to pay any a. ditiOnaI tax himself. The provisions Of the law requiring the tax to be withheld at the source does not take effect until November l, 1913.
 For the first year the citizen will make return to the local internal reve- nue collector before March 1. 1914, as to his earnings from March 1. 1913, to the end of this year. The collector will notify him June 1 how much he owes and the tax must be paid by June 90. After next year the tax will apply on the full calendar year.
 ''If the income of a person is under B 900, or if the tax upon same is withheld for payment at the source, 1r if the same is to be paid elsewhere I; the United States, affidavit may be made to such fact and thereupon no 'etuTn will be required.
 Covers Incomes of All Citizens. The tax covers all incomes of citi- zens of the United States, whether Iiv- ! ng here or abroad; those of foreign | ITS living in the United States, and | he net incomes from property owned 1 'r business carried on in the United | States by persons living abroad
 The net income includes all in- | ,ome from salaries or any compensa- | ion for personal services; incomes rom trades, professions, business, or commerce; from sales or dealings in property or real estate; from interest, rent, dividends from securi- ies; for all business carried on for ,ain.
 Requests will not be considered in- ome, nor will life insurance paid to
 beneficiary or returned to the fn- ured person as a paid up or sur endered policy be taxable Interest | n such property will be included as ncome, however.
 The amount that may be deducted \ rom total income includes the cost