New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-08
Amount

washington. April Included in the
democratic tariff revision bill introduced
in Congress to-day is an income tax sec
lion which would require every resident
~ the United states who earns more
tban $500 a year 10 pay tax Of / per
cent on his earnings in excess Of the eN-
emption
This would not require the man who
earns only 5000 20 pay a tax. but it
would demand that the individual who
Earned $Al00 for example. paw into the
government treasury an annual tax OF
per cent on Sl0o OF 81.
The bill also would provide higher rates
Of taxation forf persons with larger m
comes adding sWtaN % per cent ad-
ftional on earnings in excess of 10000,
per cent additional ON earnings in eN-
cess of 5000 and per cent additional
on earnings in excess Of $4,000
Under the surtaX provisions the man
who earns only $4,000 would pay TO the
government each year at the rate Of
Der cent on $1,000 ,S40p exempt or $50
II he earns $4,000 he would pay ] per
cent on $1,000 and . per cent on $1,000
thus making his annual tax $36'.
The person with 5000 income would
nav per cent on $500 and per cent
on $1,000 q total tax of 500
The man with an income OF 500 "0
would he required 10 pay 1 per cent on
$500 per cent ON 10000 and per
cent Oh 5000 which would bee $3.50
bringing his total income tax 10 $3.50
The individual with net income Of
million would pay this $500 on his first
$1,000 and ia addition be would pay 4
Der cent ON 10000 which would bring
his total tax 10 $3.50
Would Exempt Partnerships.
The biz also would re-enact the present
CORPORATION tax law imposing per
cent tax on the earnings Of corporations.
stock companies. insurance companies ana
the ike. but it would exempt partner
ships. This is a fat tax. there being no
graduated scale as the earnings increase
The few changes from the present cor
poration tax act concern chiefly the
time Of making returns and the time for
collection. The bin also includes under It's
provisions the property and earnings IN
this country Of persons who live abroad
ID is estimated by members OF the ways
and Means Committee that approximately
100000 in revenue may be- derived from
this new tax. including the corporation
tax. that amount making up for the dell
eli in revenues 90 be derived nom I'M
norris bv virtue of the greatly reduced
tariff rates and the transfer 10 the Tree
list OF articles that are ciassed a. hf'rs
saries Of living.
Incomes Of taxable persons shall include
Gains. profits and income derived from
salaries wages or compensation for per
sora1 service OF whatever kind and ia
whatever form paid. OF from professions
vacations. businesses. trade, commerce Oh
sales or dealings in property also ON
interest rent dividends. securities III
Guiding income from property income
from but not the value Of property ao
oui,ed t,. boouest. devise or descent ana
also nroceeds of life insurance poiic4eS
pa.d upon death OF persons insured
Tn. lin allows as deductions IN corr
,r,,,, net income all necessary eA-
pensee actually incurred in carrying o."
am business. not including personal Nv p,
inc .o- earnflv expenses. interest accrue
and nevable within the year DE I'd
able person on Indebtedness an ia 'o.''
state. county. schOo! ana inu''i''p'''
taxes not including local oeheHI 'aAe
losses incurred in trade OF from hIeS'
storms or sbipwrcck not compensated %
INSURANCE or otherwise. debts aclualiy
ascertafued as worthless ana chai So
a. also reasonable allowance Tor "ea
and tear ON property. but no deducuo"
win be- allowed FOR expense on res'o'"-
10, or movements made TO Increase
property value ir
II excepts also in computing net IN
come amounts received as oi'Ioe''u.
upon tae stock Of any corporation Jo'"'
stock company. association or insurdi0
eompan, which is taxable on its net m
come under the corporation tax provision
of the bill
Tn, bin excludes the compensation %
the President Of the United states uu'
ng his term Judges Of the Supreme a"o
inferior courts Of the United states ana
eomp.nsation Of all officers and EN-
pIovs. ~ q etate or any political suD'
division thereof.
Collects Tax at Its Source
II establishes a system Of COLLECTION 81
the tax at its source, requiring All PEI
sons, firms. co-partnershlps, COMPANIES
Corporations. Joint stock companies ~
sociatons or insurance companies ""'
an trustees executors. administrators
RECEIVERS. etc. and officers and employee
o. the United States having the coh''o
Or disposal Of salaries, wages. lhteie9
and other profits and income or aho'ne'
person. to withhold and pay TO the COZ
lector OF internal revenue the amount o
income tax due from such person ~
'nch Persons or firms are made persohSi''
liable for such tax.
Persons or corporations liable to mani
return on incomes who fail 70 90 50 az
Specified time are made liable TO a NM
not exceeding 500. and the penalty 10
false or fraudulent returns is nxeo
1850 Or imprisonment not exceeding on
year or both
In formulating this additional impost'
sah Chairman Underwood In his report
the attempt has been made 10 pro'i"
not only source OF revenue, but also
means OF redressing in some measure u"
unequal tax burdens which result Iron
me practice OF basing the federal inco"i
entirely upon customs and internal reVe
nue. duties. This is a system Of taxauo'
which inevitably throws the burden
Importing the government upon III