The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1913-10-09

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.
reasonable allowance for the de-
probation of property.
Dividends from companies whose in
comes have already been taxed.
Interest from state. municipal or
government bonds.
Must be Entire met Income"
1t is a clear provision of the law.
however, that the taxable 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, l per cent;
from $4,000 to $4,000, 2 per cent;
from $4,000 to $4,000, per cent;
from $4,000 to 100000, 4 per cent.
500. 900 to s25O,OOO, per cent; $780,
600 to 100000. per cent; above
100000, per cent.
single man with an income OF
$4,000, for example, would pay per
cent on $4,000 and per cent on $500,
total tax of $27O. If 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 a food of questions about the
new income tax, realizing that this
feature Of the tariff bill about 10 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 a detailed
/ explanation of the tax plan as il 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. Amy 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 pei
cent. on the whole income above
$4,000. and the additional tax that be
gins with an extra one per cent. above
10000 and is graduated TO six pei
cent above 100000. Wherever the
income tax is paid at the source by
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 provision
of the law requiring the tax to b'
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 l, 1914
as to his earnings from March l, 1913
to the end of this year. The collector
will notify him June / how mucl
he owes and the tax must be pait
by June 80. After next year the Ia
will apply on the full calendar year.
IF the income Of a person Is unde
$4,000, or II the tax upon same Il
withheld for payment at the source
or II the same is to be paid elsewher
in the United States, AFFIDAVIT may b
made to such fact and thereupon n
return will be required.
Covers Incomes Of All Citizens.
The tax covers all incomes OF cit
zens OF the United States, whether liz
ing here or abroad; those of foreign
ers living In the United States, an
the net incomes from property owne
or business carried on in the Unite
States by persons living abroad.
THE net INCOME includes all IL
come from salaries or any compenst
} ton for personal services; income
from trades. professions, business, @
commerce.; from sales or dealings l
J personal property or real estate; fror
interest, rent, dividends from secur
: ties; for all business carried on fo
J gain.
: Firms, corporations, and the Xix
) having the handling Of interest, rent
salaries, or other portions of the ii
come of any citizen are compelled
! deduct the tax for the individual an
, pay II to the government. The ind
vidual then will receive a receiI
showing he has paid his tax"