Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1913-10-03
EW|NCOME TAXLAW
FIRST PAYMENT WILL BE FOR
MONEY RECEIVED BETWEEN
MARCH AND DECEMBER, 1918
HALF A MILLION PEOPLE MUST REPORT
Expects to Bring In $s2,2es,ooo Year
Tax on $4,000 and Up-Minlmum
for Married Men $400o-1oo
Pay on over 100000.

Washington.-Acco to estimates
by treasury experts 425,000 American
residents must report to the income
tax collector next spring exactly how
much they owe the government under
the new income tax law.
The tariff bill, in which the law is
embodied, will be signed this week and
the first returns do not have to be
made to the internal revenue collect
ors before March 1, 1914. But when
the returns are made they will cover
tn income of citizens from March 1,
1918, to December 81, and the first pay
ment of tax will be for money received
during this period.
Every unmarried person (citizen or
foreign resident) whose annual income
exceeds $4,000 and every married per-
son with an income above $4,000 is ex-
pected to report his or her receipts in
detail to the government agents March
of each year. The estimate just
completed indicates that the income
tax will produce $82,29S,000 from the
425,000 persons taxed. To this will
be added the $35,OOO,OOO or more pro-
duced by the present corporation tax,
which is continued as part of the law.
President Wilson, the federal judges
of the supreme court and inferior
courts now holding office and en-
ployes "of state or any political sub
division thereof" are the only persons
specifically exempted from the tax by
the new law.
The president and judges now in Of
flee were made exempt to escape any
questions of the constitutionality OF
the nav and their successors in office
will be compelled to pay the tax.
Two Methods of Collection.
Two primary methods of collecting
the tax are contained in the law. One
is the individual return made by the
taxpayer; the other the returns by
corporations and other employers who
pay their employees taxes lat the
source"
Under the law, as it will be signed
by President Wilson, every large com
pany employing labor will be com
PEELED to report any regular salaries
it pays in excessof the 5000 figures
and will pay the taxes for its employees
and deduct the tax from their pay en-
velopes.
This payment at the source" will
apply to salaries, rent, interest, roy
alties, partnership profits and som,
other sources of income, and person
receiving such incomes must be pre-
pared to show that the money ha
> been paid at it's taxation source.
Exemptions Allowed.
f In figuring up his net income TO
r the taxpayer the American business
man, after deducting $4,000 for him
self or $4,000 of married, will have tn
right to claim the following additions
exemptions:
Necessary expenses Of carrying Of
business, not including personal, liy
ing or family expenses.
Interest paid out on indebtedness.
National, state, county, school o
municipal taxes paid within the year.
. Trade losses, or storm or fire losse
not covered by insurance.
Worthless debts charged off durin
Sc the year.
/, A reasonable allowance for the dc
probation of property.
Dividends from companies, the in
' come of which has already been taxed
Interest from state, municipal o
government bonds.
= 1t is a clear provision of the law
e however, that the taxable person mus
+ make a return to the internal revenu
S collector for his entire net income
4 and exemptions claimed under the Law
+ must be submitted to the federal off
S GERS for them to determine upon thei
e reasonableness or legality.
The Graduated Scale.
The amount of the income tax a
finally agreed upon follows: Fro1
$4,000 to 10000, 1 per cent; from $40
600 to $4,000, per cent; from $50
5000 to $500, per cent; $4,000 t
! 100000, per cent; 100000 to $3.50
, 600. per cent; S25O,OOO to 100000,
per cent; above 100000, per cent
An unmarried man with an incom
Of $4,000, for example, would pay
per cent on $4,000 and per cent o.
$4,000, a total tax of 1870. If Marie
the first tax of 1 per cent would appl
to only $4,000 of his income.