Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1913-10-10

:$2e.Cco, Increasing. Until the Maxi.
mum Of 6 Per Cent is Reached on
the Excess Above 50o,0C0-Penaities
> For Failing to Make Reports.
The income tax feature of the new
tariff law. made possible by the adop-
| ton Of an amendment to the federal
constitution. marks Il new feature in
tariff legislation, 1t is expected to
sled an annual revenue exceeding
f;lOo, 100000, which makes possible the
Reduction of tariff duties.
CnGer the TERMS Ut the new law a
TAX Of l per cent will be levied on all
incomes in excess of $1,000 with GER
tain exemptions. The bill provides
that there shall be IAN additional tax
Of l per cent per annum upon the
amount by which the total net income
exceeds 100000 and does not exceed
S:O.OUO. and , per cent per annum
upon the amount by which the total
net income exceeds $4,000 and does
not exceed $75.WO. 3 per cent per an
hum upon the amount by which the
totai net income exceeds $4,000 n
does l:ot exceed $loU0GO. 4 per cent
Del annum upon the amount hy which
the total net income exceeds 100000
and does not exceed $25O.O00. 5 per
cent per ,annum upon the amount by
which tile total Ret income exceeds
ff2250. 0tU and does not exceed $5CO,O0O
and 6 per cent per mum upon the
amount by which the tota! net income
exceeds $jJcc",o0o."
Individuals to Make Returns.
Every person subject to the income
lax must MAKE L report Of his income
70 the collector OF internal revenu in
he district in which he lives or in
which his business is carried on.
In defining what shall be considered
income for taxation. the. bill says:
"Subject only to such exemptions
s.tnd deductions as are hereinafter al
lowed. the net income OF Il taxable
person shall include gains. profits and
income derived from salaries, wages
or compensation FOR personal service
- q RI ~ ~ W 0A ~. a.
ipaid. or from professions. v%Ocations,
businesses. trade. commerce or sales or
dealings in property. whether .rea! or
41lersonal.. growing out Of the ownership
or use of or interest in a or personal
property: also from interest. rent. divi-
lends, securities or the transaction OF
ANY lawful business carried on TO-. gain
Or profit or gains or profits and income
derived from any source whatever. in
Guiding the income from but not the
value OF property acquired by gift. be-
quest. devise or descent, provided that
the proceeds of life insurance policies
paid upon the death Of the person i'll
:Sured or payments made by or credited
to the insured Oh life insurance, en-
dowment or annuity contracts upon
the return thereof t the insured at the
maturity of the term mentioned in the
contract or upon surrender Of the con-
tract shall net be included as income"
: Tie provisions Of the bill for eXemp-
tons as finally agreed OF are:
There Shall be deducted from the
amount of the net income OF. each Of
said peTS1nS. aScertHined as provided
herein. the sum of $4,000 Plus $1,000
additional if the person making the re-
turn be Il married man with a wife.
living with him and being herself not
taxable under the income tax law. or
plus the sun Of $1,000 additional if the
person making the return be a married
woman with a husband living with her
and being himself not taxable under
the income tax law. hnt in NJ event
shall! this additional exemption Of ST.
900 he deducted by both a husband
and a wife,
Foreign Residents to Be Taxed.
The BIZ! contains provisions for the
taxation Of the incomes of citizens re-
siding in foreign countries on incomes
derived from property owned or bnsi-
ness carried on in the United States.
The bill also provides:
THAT If any person, corporation,
joint stock company. association or in
surance company liable to make the
return or pay the tax aforesaid shall
refuse or neglect to make a return at
the time Or times ~hereinbefore speci-
fed in each year. such person shall be
liable to a penalty of not less than $40
nor more than $1,000. Any person or
any officer Of any corporation required
by law to make. render. sign or verify
any return who makes any false or
fraudulent return or statement with in
tent TO defeat or evade the assess ment
required by this section to be made
shall be guilty of a misdemeanor and
Ishall be fined not exceeding $1,000 Or
be imprisoned not exceeding q year,
or both. at the discretion or the court,
with the costs of prosecution"
The first tax is to be- levied and COL
/ lected on incomes from March l. 1913.
to Dec. 81, 1918. Thereafter the in
come shall be computed for calendar
years ending with Dec. 81.
The bill also provides that the in