The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1913-04-18

Nb hahpA0A " NhO ICG lloA VI
articles that are classed as necessa-
ries of living.
Incomes Of taxable persons shall
include gains, profits and income de-
rived from salaries, wages or com-
pensation for personal service OF
whatever kind and in whatever form
paid, or from professions, vocations,
business, trade, commerce or sales or
dealings in property, also from inter
est, rent. dividends. securities, includ-
ing income from property, income
from but not the value of property
acquired by bequest, devise or de
scent, and also proceeds Of life insur-
ance policies paid upon death Of per-
sons insured.
Provision Made for Deductions.
The bill allows as deductions in
computing net income all necessary
expenses actually incurred In carrying
on any business, not including per-
sonal living or family expenses, inter-
est accrued and payable within the
Tear by a taxable person on indebted
ness; all national, state, county,
school and municipal taxes, not in
GLIDING local benefit taxes; losses in
CURED in trade or from fires, storms
or shlpwreck not compensated by In
surance or otherwise; debts actually
ascertained as worthless and charged
OF; also reasonable allowance for
wear and tear on property; but no de
duction will be allowed for expense
OF restoration or improvements made
to increase property value.
It excerpts also, in computing net in
come, amounts received as dividends
on the stock of any corporation
mt stock company association or
Insurance company which is taxable
upon its net income under the cor.
r0 ation tax provision Of the bin
The bill excludes the compensation
of the president Of the United States
during his term, that Of judges of the
Tg1reme and inferior courts Of the
United States, and compensation 9f
| all officers and employees Of a state 81
any political subdivision thereof.
System of Collection Framed.
1t establishes a system of collection
of the tax at its source, requiring ali
persons, firms, copartneIships, com
plnles, corporations, Joint stock CON
panies, associations or insurance coz
panies, and all trustees, executors, Cd
m~inistrators, receivers, etc, and of
GERS and employees of the Uniteo
States having the control or disposal
of salaries. wages, interest and other
profits and income Of another person
to withhold and pay to the collector
of internal revenue the amount of in
come tax due from such person. All
such persons or firms are made per-
sonally liable for such tax.
Persons or corporations liable to
make return on incomes who fail to
do so at a specified time, are made
liable to a fine not exceeding $500 and
the penalty for false or fraudulent re-
turns Is fixed at $1,000 or lmprison-
ment not exceeding n year, or both.
I'm formulating this additional i'm.
post" said Chairman Underwood in
bis report, the attempt has been
made to provide not only a source OF
revenue, but also a means of redress
ing in some measure the unequal tax
burdens which result from the prac-
tice Of basing the federal income en-
tirely upon customs and internal reve-
nue. duties. This is a system Of tax.
alton which inevitably throws the bur
den of supporting the government up
on the shoulders of the consumers.
1t correspondingly exempts the men
of larger income, whose consumption
OF the ordinary n%ecessaries of life is
subject to tariff taxation in a far less
aggregate degree than is that of small
er income earners who eXpend the
greater proportion Of their resources
for the ordinary necessaries of life
Underwood Defends Plan.
Speaking Of the principle of taxa
ton laid down and the graduated sys-
EN- proposed, Mr. Underwood dc
clared.
The progressive principle already
has been sustained by the Supreme
court of the United States in the in
heritance tax cases and there can be
10 doubt that the same principle p1.
Lies to the income tax iaoiuded in
his bill and viii be fully upheld
hould 1t ever be called into question.
wing to defects in personal property
xation, the larger incomes In the
nited States have for many years
cen able to escape with less than
leir share Of the general burden Of
xation, and this inequity will be, il
believed, in part overcome by the
Ian proposed"
The bill provides that all taxable
ersons shall be notified of the amount
or which they are liable under the
aw on or before the LIST day OF June
f each year and assessments must be
aid or or before June 30. For delay
4 making payments and ten days aft
r notice, there shall be added the
um Of 5 per cent. of the amount Of
* unpaid and interest at the rate Of
per cent. a month from the time the
ax fell due.
The corporation tax provision, 1t is
1iractad shall he comDutad upon In