Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1913-10-10

win approximate $s2.29S. 900.
This is the schedule:
So 900 70 $40, 1000. .......i per cent
10000 to Sc, 1000. .....2 per cent
$4,000 70 $4,000. .......3 per cent
$4,000 to 100000. -. ..4 per cent
100000 to $25o,0oo. .....5 per cent
$25o,oo0 TO 100000. .....6 per cent
More than $500. 900. ......7 per cent
So far as the taxable American is
concerned. the income tax law Ia now
practically In force against him. While
the tariff law in which the law is en-
bodied will not be signed until next
week, the first returns do not have to
be made to the internal revenue col
lectors before March 1, 1914. But when
the returns are made they will Gov
err the income OF citizens from March
/. 1913. to December 81, and the tirst
payment of tax will be for money re-
ceived during this period.
Every single person (citizen or for
eign resident) whose annual income
exceeds $1,000, and every married per
son with an income above $4,000. IL
expected to report his or her re-
ceipts In detail to the government
agents March of each year.
To Produce So, Ooo, 600.
The estimate completed indicates
that the income tax will produce $S2,-
29S, 900 from the 425.O0O persons taxed,
| To this win be added the $35, 900
or more produced by the present cor
poration tax, which is continued as
part Of the law.
| President Wilson, the federal judges
Of the Supreme court now holding Of.
fee and employees "of q state or any
political subdivision thereof" are the
only persons specifically exempted
from the tax by the new law The
president and judges now in office
were made exempt to escape any Ques
tons OF the constitutionality OF the
law, and their successors In once will
be compelled to pay the tax.
First Burden la on Citizen.
The general public is expected &c
give close study to the new law In
the next few months, as the first bur
den OF the tax payment rests with the
individual citizen, and his failure tC
report his income Is punishable by 6
fine.
1t is admitted that when first re
turns are made many taxable persons
probably will escape payments, bu
with each year the governments Lists
of persons with taxable incomes will
be made more nearly complete.
Methods Of Collecting Tax.
Two primary methods OF collecting
the tax are contained In the law. Ont
is that the individual return made b.
the citizen; the other the returns b,
corporations and other employers WHIT
pay their employees taxes "at thu
source" Under the law as II viii b,
signed by President Wilson next week
every large company employing labo
will be compelled to report any regu
lar salaries it pays in excess of tn
$4,000 figures, and will pay the take
for its employees and deduct the Ia;
from their pay envelopes.
This payment at the source vii
apply to salaries, rents, interests. roy
aIties. partnership profits and som
other sources of income, and person
receiving such incomes must be pre-
pared to show that the money ha
paid it's tax at its source.
In figuring up his net income 70
the taxpayer, the American bushes
man, after deducting $4,000 for him
self, or $4,000. IL married, will hay
the right to claim the following add
tional exemptions:
Necessary expense of carrying D
business, not including personal. Twin
or family expenses.
Interest paid out Of indebtedness.