The Leavenworth echo. [volume] (Leavenworth, Wash.) 1904-current, 1913-11-21
Will THE INCOME TAX
AFFECT LOCAL CITIZENS
Collector of Internal Revenue viii Be
Here SOon-The Question is How
Many of Us Make $4,000 a
Year or More

who have yearly incomes of $4,000 or
more7 This is the question that will
be up to the collector OF internal reve-
nue. or his deputy who will probably
visit this city in the near future. We
venture to say that there will be few in
Leayenworth who will have to kick
across with contributions to the federal
government, but nevertheless there are
a few at that. In Chelan county
there will likely be several hundred or
more who will later be asked to render
statement to the government concern
ing their receipts. OF course it is not
expected that all Of these will prove to
be victims OF the new methods put in
to force by the democrats to plug some
OF the holes made in the national
exchequer by reason of the reduced
tariff duties, but sufficient information
has been received to warrant investi-
CATION by the collectors Of the new tax.
Blanks will be sent to all prospects"
in few weeks and they must make
return by the first day Of March under
penalty Of fine from $40 to $1,000.
Any person who is the fortunate pos
SCISSOR Of an income exceeding $4,000,
if single person, or $4,000, if mar
ried, should bear in mind that the fact
that he has been overlooked by the
government in the sending out of the
blanks does not excuse him from rem
dering a return. There is no obliga-
ton whatever on the part of the gov
eminent to send out such notice, this
being merely courtesy on the part
OF the department.
The income tax law applies to all
men who have incomes above $4,000
per anum, if single, and $4,000 ii
married. The tax is one per cent on
all that portion Of ones income above
the exemption limit. For instance, if
a man is a bachelor and has an income
OF $4,000 he will be required to pay
one per cent on 81 900 or tax of $40
to the federal government.
The income tax will not be payable
to the county authorities, as are regu-
lar taxes, but will be paid to the in
ternal revenue collector or his agent.
Just what procedure will be made
in collecting the tax is not yet an
nounced but it is considered probable
the internal revenue collector will send
an agent over the state between now
and March / to list the probable payees
of the income tax. In this work such
an agent would be aided much by the
regular tax lists Of the various counties.
Under the provisions of the income
tax law, adopted in connection with
the tariff law, citizen is required to
inform the government as to his net in
come and as the governments end OF the
affair is saieguarded it may be difficult
for a would-be tax dodger to escape.
For instance, accumulated dividends or
surplus by corporation is considered
as a portion Of the earnings OF the
various stockholders and is assessed
against them accordingly. In computing
the net amount business men, profes-
sional men OF farmer may deduct for
.xpenses of his business and certain
amount for depreciation OF property
Hut he cannot deduct for living ex-
penses or for betterments or permanent
imnroyements. The law provides that
all assessments shall be made by the
commissioner Of inteanal revenue and
all persons shall be notified Of the
amount Of their tax on or before the
first of June each year. The money
will be payable on or before the 5oth
day Of June. In the cases OF compan-
les and corporations having the collec-
ton Of interest, rents, premiums sal
aries or other determinable annual
gains, other than dividends on capital
stock, the government collects the tax
at the source.
For failure to give true statements
as to ones income or for otherwise dis
regarding or violating the law there