The Madisonian. (Richmond, Ky.) 1913-1914, 1913-10-07
interest from state, municipal or
government bonds.

hh1hO a 4CtuAA ~ Luo IuteEllAl IOf0Au0
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: E
From $4,000 to 100000. 1 per cent;
from $4,000 to $4,000, per cent;
from $4,000 to $4,000, per cent;
from $4,000 to 100000. per cent:
500. 900 to s25oOOO, per cent; $780,.
900 to 100000. per cent; above
100000, Z per cent.
A single man with an inccms OF
$4,000. for example, would pay per
cent on 1000 and per cent on $500.
total tax of $270. II married, the
first tax Of per cent. would apply to
only $4,000 OF the income.
Ready to Answer QUESTION:.
The treasury department Is prepar-
ing for a flood of questions about the
new income tax. realizing that this
feature OF the tariff bill about to be-
come law strikes more intimately at
the tar paying citizen than do the
indirect taxes collected through the
customs duties.
Representative Cortiell Hull Of Ten.
nessee, who drew, the income tar pro-
vision Of the tariff bill which viii soon
become law, made public o detailed
explanation Of the tar plan a Il viii
touch the individual citizen.
THE treasury regulations soon %
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. ANY 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 per
cent. on the whole income above
$4,000, and the additional tax that be.
gins with an extra one per cent. above
$4,000 and Is graduated to six PEI
cent. above 100000. Wherever the
income tax Is paid at the source by g
corporation for It's employees or in SINH
lar cases, only the one per cent nor
| NAL tax is so paid.
The individual has to pay any a
ditional tax himself. The provisions
of the law requiring the tax to be
withheld at the source does not take
effect until November l, 1918
For the first year the citizen viii
make return to the local internal reve
nue. collector before March 1, 1914
as to his earnings from March 1, 1913
to the end of this year. The collector
will notify him June how much
he owes and the tax must be paiC
by June 80. After next year the tai
will apply on the full calendar year.
IF the income OF a person is under
$4,000, or il the tax upon same II
withheld for payment at the source
or if the same is to lbe paid elsewhere
in the United States, AFFIDAVIT may bt
made to such fact and .thereupon nt
return will be required.
Covers Incomes of All Citizens.
The tax covers all incomes of citi
zens OF the United States, whether liv
ing here or abroad; those of foreign
ers living in the United States, anS
the net incomes from property owned
or business carried on In the Unitet
States by persons living abroad.
1.-THE net income includes all In
come from salaries or any compensa
ton for personal services; incomes
from trades, professions, business, o
commerce.; from sales or dealings II
personal property or real estate; from
interest rent, dividends from securl
ties; for all business carried on 70
gain.
"Bequests will not be considered II
come, nor will life Insurance paid t
a beneficiary or returned to the IL
sured person as a paid up or SUI
rendered policy be taxable. Interes
on such property will be included q
income, however.
E. The amount that may be deducte
from a total income includes the COZ
of carrying ON business, actual losse!
depreciation allowances, and tax e1
empt or tax paid money. Living e.
penses cannot be deducted, nor ca
money spent for permanent improv,
ments to property.
Forms to BE Ready Soon.
E'The form that is to be filed OF
by the taxpayer will be drawn u
soon by the commissioner Of internt
} revenue. The taxpayer Will have
give his gross revenue and then spec
fly and claim the deductions to whic
i he feels entitled.
, Unless a mans income tax Is pal
at the source he must hunt up ia
blank, fill it out, and see that it find
, its way to the proper federal of1cii
in his district before March /, 1914.
} Firms, corporations and the liz
having the handling of interest, rent
, salaries, or other portions Of the +
come of any citizen are compelled
: deduct the tax for the individual an
pay it to the government. The ind
: yidual then will receive, a receil
showing he has paid his tax"
TAX WILL BE LEVIED