Gilpin observer., 1913-10-09

CiIizcub Will Dc duccteu py tno pTo-
visions Of the income tax bill and
that the revenue derived therefrom
will approximate $82,29s, 900.
This is the schedule:
5000 to $4,000. .........f per cent
10000 to $4,000. ........2 per cent
$4,000 to $4,000. ........3 per cent
$4,000 to 100000. -. ...4 per cent
100000 to $25o,ooo. ......5 per cent
s25o,ooo to 100000. ......6 per cent
More than $500, 900. ......7 per cent
So far as the taxable American is
concerned, the income tax law is now
practically in force against him. While
the tariff law in which the law is en-
bodied will not ba 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 COW
er the income of citizens from March
1, 1913, to December 81. and the first
payment of tax will be for money re-
ceived' during this period.
Every single person (citizen or for
eign resident) whose annual income
exceeds $4,000, and every married per
son with an income above $4,000. is
expected to report his or her re-
ceipts in detail to the government
agents March 1 Of each year.
To Produce $s2, ,0oo, 900.
The estimate completed indicates
that the income tax will produce $82,-
2sS.OOO from the 425. 900 persons taxed.
To this will be added the $35,0O0,0OO
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
flee and employees "of 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-
tions of the constitutionality Of the
law, and their successors in office will
be compelled to pay the tax.
First Burden Is on Citizen.
The general public is expected to
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 to
report his income is punishable by a
fine.
1t is admitted that when first re-
turns are made many taxable persons
probably will escape payments. but
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. One
Is that the individual return made by
| the citizen; the other the returns by
corporations and other employers who
pay their employees taxes at the
source" Under the law as 1t will be
signed by President Wilson next week,
every large company employing labor
will be compelled to report any regu-
lar salaries 1t pays in excess of the
| $4,000 figures, and will pay the taxes
for its employees and deduct the tax
from their pay envelopes
This payment at the source" will
apply to salaries. rents. interests. roy
alties, partnership profits and some
receiving such incomes must be pre-
pared to show that the money has
paid its tax at its source.
In figuring up his net income for
the taxpayer. the American business
man. after deducting $4,000 for him
self. or $4,000. IL married. will have
the right to claim the following add
tional exemptions:
Necessary expense OF carrying on
business. not including personal. living
or family expenses.
Interest paid out Of indebtedness.