The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1913-04-18

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ries of living.
Incomes OF taxable persons shall
include gains, profits and income de-
rived from salaries, wages or com,
p%ensation for personal service OF
whatever kind and in whatever form
paid. or from professions, vocatlons
business, trade, m 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 N carrying
on any business. not including per
sonal living or family expenses, inter
est accrued and payable within the
year by a taxable person Oh indebted
ness; all national, state. county.
school and municipal taxes, not In
CAHbiuS iONdi DtHcHl IdAtn, lOoo'o III
CURED in trade or from ores. storms
or %shipwreck not compensated by In
surance or otherwise; debts actually
escertained as worthless and charged
off; also reasonable allowance for
wear and ear on property; but no de-
duction will be allowed for expense
OF restoration or Improvements made
to Increase property value.
1t excerpts also, in computing net IN
come, amounts received as dividends
upon the stock OF any corporation.
joint stock company, association or
insurance company which is taxable
upon its net income under the cor
poratfon tax provision Of the bill.
The bill excludes the compensation
of the president OF tho United States
during his term, that OF judges Of the
Supreme and inferior courts OF the
United States, and compensation Of
all officers and employees OF a state or
any political subdivision thereof.
System Of Collection Framed.
II establishes a system OF collection
of the tax at its source, requiring all
persons, firms, copattnerships. com
panies. corporations, joint stock com
panies, associations or insurance COM
panies, and all trustees, executors. ad-
illustrators, receivers. etc, and OH
GERS and employees OF the United
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 IL
make return on incomes who all 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 81 1000 or imprison
ment not exceeding one year, or both
in formulating this additional i'm
post said Chairman Underwood il
his report, the attempt has beer
made to provide not only d source O
revenue, but also a means OF redress
ing in some measure the unequal tai
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 mp
on the shoulders Of the consumers
1t correspondingly exelnpts the mel
Of larger income. whose consumption
Of the ordinary necessaries OF life !
: subject to tariff taxation in q far les
aggregate degree than is that OF small
a err income farmers who expend tn
greater proportion Of their resource
for the ordinary neeessaries OF life.
Underwood Defends Plan.
= Speaking of the principle Of taxa
= ton laid down and the graduated sys
= tenn proposed, Mr.. Underwood dC
clared:
THE progressive principle alread
i has been sustained by the Suprem
=, court of the United States in the II
heritance tax cases and there can b
:, no doubt that the same principle al
. plies to the income tax included
> this bill and will be fully uphe'
should it ever be called into question
Owing to defects in personal propert
taxation, the larger incomes in III
Il United States have for many year
= been able to escape with less tina
u their share of the general burden {
taxation, and this inequity will be,
u is believed, in part overcome by u
= plan proposed
~ The bill provides that all taxab
~ persons shall be notified of the slnoul
for which they are liable under ii
II law on or before the 1st day Of Jur
70 of each year and assessments must
y paid on or before June 80. Fer della
~ In making payments and ten days at
~ err notice, there shall be added II
sum Of 5 per cent. OF the amount
70 tax unpaid and interest at the rate
~ 1 per cent. a month fIom the time Il
~ tay fell due.