Bisbee daily review., 1913-11-05
THUMB NAIL SKETCH OF SALIENT POINTS
 IN THE INCOME TAX
Plans for Collection in Ari- zona no More Advanced Than in Other Parts of the Country


 feet Preparation for collecting the tax ln Arizona is no potter perfected than la other parts or the country and the Government has expressed the opinion that an educational cam paign among the public is essential In asslsting the workings of the stat ute.
 Every citizen of the Unitod States. whether residing at home or abroad, is required to pay 8 tax of 1 per cent on his or her net income if it amounts to a minimum of S3,O00 or a naximJm of S2O.e00. In the case Of a married man with a wife living with him." or of a married woman with a husband Twins with her. the tax is imposed on a minimum income of S4.000 a year or a maximum of Se0,00O The above is known as the norma! income tax" in distmetion from an additional tax imposed as follows:
 One per cent per annum upon the amount by which inc total net in come exceeds s2O,000 and does not exceed S50,O0o; ? per cent. sSO,0oO to S75.O5U: 8 per cent, s75.000 to s1Oor GOO; per cent, s10O,0Oo to ss50,OOoi 5 per cent, s25O.OOo to S5OO.0O0; and 6 per cent above s500.0O0. For the purpose of this additional tax, the taxable income of any individual enl- braces the share to which he would De entitled of the gains and profits whether divided or distributed or not Of all corporations. joint stock com psnies or associations however GIG ated or organized.
 The income tax will be applied as from Nov. 1, 1913, and collections VIII be made by the Commissioner Of In terHM Revenue through his agents who Sill be appointed 10 the various districts throughout the country They will distribute blanks wihch must be filled out by those whose income calls for enlistment In com putting net income for the purpose Of the normal tax" the following de ductions are permitted:
 The necessary expenses actually uaid in carrying on any busiless, not including personal, living or family eyDenses: all interest pald within the wear by a taxable person on indeot eJuess: all National, State, County, school and municipal taxes paid with in inc year, not mciGdiEe those as sessed against local benefits; losses actually sustained during the year, incurred ,a trade CT arising rom fires. storms, CT slips reck, and not colnpersatcd for by iltsul aEcc or OUT eIwtse: debts due to the taxpayer ac- traliv ascertained Co be worthless and sha; yed or within tue year; a reasonable allowance for the eNhaus ton. wear and tear of property aris' ing out of its use or employment hi the business, not to exceed, m the ease of mines, 3 per cent of the gross -aIue of the mine of the ortDut for the wear for which the computation is made, but no deduction shall be made ror any amount of expense of restor. ing property or making good the cX- ,austIou thereof for which an allow ance Is or has been made.
 This year, the tax will be levied for incomes received during November and December. Thereafter, the tax yiII he computed as from Jan. 1. 1911. m or before March 1 of every year, cyery person having a net income or S2 OU6 or more and subject to the tax i will be required to make oath as to his oer income 10 the collector Of in ternal revenue III his district and also set forth his gross income from all separate sources. All persons actins in a GiuciaIy capacity aye required to do likewise for the persons for whom tiey act.
 Assessments wil be made by tue i Commissioner of Internal Revenue and all persons will be notified or inc amount on which they must pay taxes, on or before June 1 of each successive year. Assessments must be paid On or before June 90. except in cases of refusal or neglect to make returns or in cases of fraudl' lent returns A penalty Of $500 hne is provided for making false state tment.
 IF assessing mines, a reasonable allowance for depletion Of ores aud ! all otter natural deposits. not to ex- ceed 5 per cent of the gross value at the mine of the output for the year. is allowed.
 | That there will be considerable confusion at first in carrying out the provisions of the income tax, is con ceded by the Government. One oi the knottiest problems concerns the the collection of the tax from the source of income in the case Of cor poratious. It seems to be the con census of opinion among legal author iisiss that corporations are required to pay the normal tax only: thst Is. 2 tiax of per cent on the net income ! cs tia oorporationf The additidral { taxs is levied on individuals only Firms and co-partnerships are mol taxed as suca, and need make no re | urn whatever The individual part ners are taxed. however. for their pro
 kaN..