Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-09-19
INCOME TAX HITS
7,526PERSONSI IN
NORTHERN Jersey
Twenty-nine Persons in Eleven
Counties Taxed on $1,000
and Over.

An estimate of the number of resi-
dents of northern New Jersey affected
by the provisions of the new income
tax law has been prepared by E. Al
len Smith, chief deputy collector of
internal revenue, and forwarded to
William II. Osborne, commissioners of
internal revenue in Washington, for
his guidance in preparing for the en-
forcement of the law
According to Mr.. Smiths statement
there are twenty-nine persons in the
eleven northern counties of the State
who will be subject to the maximum
assessment for having incomes ex-
ceeding 100000. There are III resi-
dents whose incomes range from
$500 to 800, 900, according to the es-
innate; 1853 with incomes between
$4,000 and $4,000 and 1927 with in
comes over $4,000 and under $40, 600.
Altogether 1926 persons are affected
by the tax.
The estimate has been based on a
population of 1,S75,705 containing ap-
proxjmately 416, 1923 families in the
Fifth internal revenue district. The
counties comprising this district are
Essex, Hudson, Bergen, Passaic, Nor
ris, Warren, Sussex, Union, Somer-
set, Hunterdon and Middlesex.
The preparation of the statement
by Mr.. Smith required an exhaustive
search of the records of the insur-
ance companies, statements on file in
the library, and an investigation into
every source possible.
Mr.. Smith said he found particularly
valuable the records of the State of
Milwaukee, which has State income
tax now in effect. He compared Es-
sex county with Milwaukee county In
Wisconsin and then scaled down the
figures to comply with the changed
conditions in the outlying counties
where there is more farming than
manufacturing.
The income tax law provides for
the taxing of all incomes exceeding
$4,000, except where provision IS
made for exemption. A bachelor with
no one depending on him must suffer
tax on his entire income If 1t is
$4,000 or over.
The exemption provisions are $1,000
for man whose wife depends on
him for support, or for wife who
supports her husband, and 5000 for
each child. The exemption, however,
on children is not to exceed $1,000.
Thus II q married man living with
his wife and two or three children
gets SIS, 900 year. he is not subject
to a tax, but If he has only one
child he must pay tax on $780, If
he lived alone with his three chill
dren he would pay tax on $1,000.
The law becomes effective January
1, 1914. and is part of the tariff
bill. The enforcement of the law lies
with the treasury department, OF
which the internal revenue is a
branch.
Before the law can be enforced
there is a multitude of obstacles to
be overcome. Commissioner Osborn
will receive statements similar to
the one prepared by Mr.. Smith from
each of the districts so that he will
be able to estimate the number of
men, stationery, etc. required in
each district
is now the seventh largest In the
country. having recently passed the
Philadelphia and ST. Louis districts.
There has been a great gain made in
the receipts of the local district dur
ing the past few months and also in
amount of tobacco consumed.
According to the reports for the
months of July and August the local
district has run ahead of every dis
trict for increase In the amount of
tobacco consumed. The reports show
a gain of 12,79s,620 cigars, 5,6S5. 900
small cigars, and 66,131, 320 cigarettes,
and 94.11e pounds OF snuff for the last
two months over the amount con-
sumed in May and June.