Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1913-04-18

and the transfer to the free list of
articles that are classed as necessar
ries of living.
Incomes of taxable persons shall
include gains, profits and income do
rived from salaries, wages or com
pensation for personal service Of
whatever kind and In whatever form
paid, or from professions, vocationa,
business, trade, commerce or sales or
dealings in property, also from inter
est, rent dividends, securities, includ-
Ing income from property, income
from but not the value of property
acquired by bequest, devise or de-
scent, and also proceeds of life insur>
ance policies paid upon death Of per
sons insured.
Provision Made for Deductions.
The bill allows as deductions in
computing net income all necessary
expenses actually incurred in carrying
on any business, not including per
sonal living or family expenses, inter
est accrued and payable within the
year by taxable person on indebted
ness; all national, state, county,
school and municipal taxes, not in
Guiding local benefit taxes; losses in
| Cured in trade or from fires, storms
or shipwreck not compensated by in
surance or otherwise debts actually
| ascertained as worthless and charged
| off; also reasonable allowance for
wear and tear on property; but no de-
duction will be allowed for expense
| of restoration or improvements made
to increase property value.
1t excepts also, In computing net in
come, amounts received as dividends
upon the stock Of any corporation
| Joint stock company. association or
insurance company which is taxable
upon its net income under the cor
poration tax provision of the bill.
The bill excludes the compensation
of the president of the United States
during his term, that of judges of the
| Supreme and inferior courts of the
| United States, and compensation Of
all officers and employees Of state or
any political subdivision thereof.
System Of Collection Framed.
II establishes q system of collection
Of the tax at its source, requiring all
persons, firms, copartnerships, COM
panies, corporations, joint stock COM
panies, associations or insurance CON-
panies, and all trustees, executors, ad-
ministrators, receivers, ETC., and Off
GERS and employees of the United
States having the control or disposal
Of salaries, wages, interest and other
profits and income Of another person
to withhold and pay to Che collector
| of internal revenue the amount Of In
come tax due from such person. All
such persons or firms are made per-
sonally liable for such tax.
Persons or corporations liabio to
make return on incomes who fail to
do SO at specified time, are maSe
| liable to fine not exceeding $500 ana
the penalty for false or fraudulent re-
turns is fixed at $1,000 or imprison'
ment not exceeding one year, or both.
"In formulating this additional i'm.
post" said Chairman Underwood in
his report, "the attempt has been
made to provile not only source OF
revenue, but also a means Of redress
/
burdens which result from the prac-
tice of basing the federal income en-
tirely upon customs and internal reye-
nue. duties. This is system of tax.
alton which inevitably throws the bur.
den of supporting the government up.
on the shoulders of the consumers,
1t correspondingly exempts the men
of larger income, whose consumption
of the ordinary necessaries of life is
subject to tariff taxation in far less
aggregate degree than is that of small.
er income earners, who eXpend the
greater proportion of their resources
for the ordinary necessaries of life."
Underwood Defends Plan.
Speaking of the principle Of taxa
tion laid down and the graduated sys
tenn proposed, Mr.. Underwood de
clared:
"The progressive principle already
has been sustained by the Supreme
court of the United States in the in
heritance tax cases and there can bs
no doubt that the same principle ap
plies to the income tax included In
this bill and will be fully upheld
should it ever be called into question
Owing to defects in personal property
taxation, the larger incomes in the
United States have for many year,
been able to escape with less thar
their share of the general burden o
taxation, and this inequity will be, 4
is believed, in part overcome by th'
plan proposed"
The bill provides that all taxable
persons shall be notified of the amour
for which they are liable under th'
law on or before the 1st day Of jun
of each year and assessments must b.
paid on or before June 30. For della.
In making payments and ten days aft
er notice, there shall be added thu
sum of per cent. Of the amount o
tax unpaid and interest at the rate o
per cent. month from the time tn
, tax fell due.
nho oornoration TOW nrnviaion n 4