The Detroit times., 1913-10-22
6v gibson GARDNER.

WASHINGTON, Oct. 22.-The new
income tax law Is in effect.
You must pay 1t by next June and
your return must be in by next
March.
The law covers this years income.
In fact, il goes back to last March.
victims" Of the income tax, you
must account for your income to
Uncle Sam.
How does 1t affect you?
II you are unmarried and have less
than $4,000 a year, forget 1t!
II you are married and have less
than $4,000 a year. forget It! II your
income Is above these figures you will
have to pay one per cent on the mar
gin between these figures and the top
limit of your income. In addition, II
your net income exceeds $4,000 you
pay one per cent more up to $4,000;
on $50 200, two per cent more to $751;
900: on $4,000, three per cent more
up to 100000; on 100000. four per
cent more to $250.000; on $25O,000,
five per cent more to 100000, and
on all over $500. 900, six per cent more.
Explanations Of the law are being
printed by the treasury department
and will soon be ready for distribu-
ton throughout the country. They
can be had probably at every post
cffice. They will be sent to some peo-
pie by officials, but the fact that you
do not get q blank form or an ex-
PLANTATION does not relieve you from
the law. You must get blank form
and fll II out.
Incidentally, there are penalties. II
you delay too long the tax Is doubled
and II you try to swear 1t of, you
run the chance Of $4,000 fine or a
year in jail, or both!
OF course your first returns are for
proportionate part of the year, and
the figure for you to keep In mind Is
hot $4,000 and $4,000, but $4,000 and
$3.333.33. That Is because you are
to pay on your income for that part
OF the year between March 1 and
Dec. 30, 1918.
Most people will not pay their in
come taxes themselves, but will have
II taken out OF their income before
they get It. The man on salary will
have his tax deducted from his pay
and forwarded to the government by
his boss. The man getting rents in
terms above $4,000 and $4,000 a year
will have II held out by the man who
pays the rent. The man living on in
terest will have the income tax held
out by the person. firm or corporation
whose bonds or other form Of secur-
lily he holds. A person living on divi-
dends or the profits OF a corporation
will have the income tax collected as
under the present law by the cor
poration tax. In other words, there
Is no new income tax on profits of
corporations. These are supposed to
have been reached by the law already
on the books. The person living on
the income from government bonds,
or state, county or municipal bonds
gets off. Income from these sources
is exempt under the law, the purpose
being to encourage investment In
such public securities.
There are a lot OF other people
who have to make their own returns.
Merchants. farmers. professional men.
tradesmen, authors. inventors, etc.
belong to class whose incomes are
uncertain az to amount and times OF
ic'tipt. lutse peTsOnb are required
each To make a personal return on his
income when II exceeds the specified
amount.
For the benefit Of the large class
Of small investors whose incomes are
not large enough to be- taxed, II
should be explained that they will be
required to disclose themselves as
the holders of certain bonds and to
claim exemption--as for example. a
widow with $4,000 estate invested
in the bonds of an Industrial corpora.
ton. These are merely numbered
bonds to which are attached coupons
for the five per cent dividends pay
able quarterly. Under the law the
corporation would withhold the one
per cent on all these coupons and II
would be necessary for the said widow
to I'll out a form which can be Sc
cured from the treasury department.
claiming her exemption. because the
amount OF her total income falls be.
low the legal minimum. This would
be forwarded by her bank to the treas.
ury and she win xeceive q check re-