Abbeville progress. (Abbeville, Vermilion Parish, La.) 1913-1944, 1913-04-19


Incomes of tavabl" persona shall
include gains. pr".tH aud incom" de-.
rived from salaries. wages OF com
pcusatiuu for personal s"ryic" Of
whatever Kind and In Whatever form
paid or from professions. yoc7tion".
business. Aradc. commerce or sales or
dealings I'm property. also from Inter
"st. rent. dividends. securities, iuclud
iug income from property. ln""m"
from but not tho Value Of property
acquired by b"quogt. d"yls" or do
scent and also proceeds of III" ingur
auco policies paid upon death of per
sons insured
Provision Made for Deductions
Tn" bill allows M deductions IN
computing not income all necessary
expenses actually incurred In carrying
on any business. not including per
soual living or family expenses, Inter
"sr accrued and p.yablo within tho
year by taNahl" person o. indebted
ness. all national. state. county.
school and municipal taNcs. not In
Guiding local benefit taxes. losses IN
Cured In trade or from fires. gtorma
or shipwrock not compensated by In
eurauC" or otherwise. debts actual,
asccrialncd MS worthless and charged
of. also reasonable allowance for
wear and tear on property. but no de-
duciiou will be- allowed for "yp"nso
Of restoration or improvements mad"
to Increase property value"
II excerpts also. I'm computing net I'm.
come. amounts received as dividends
upon the stock of any corporation.
Joint stock COMPANY association or
insurance company which is taXabl"
upon it's net incom" under the cor
pora'ion tax provision Of IN" bill.
The bill excludes the compensation
of the president of the United states
during his term. that Of Judges Of the
Supreme and inferior courts Of tn"
United states. and compensation "
all officers and employees of state "r
any political subdivision thereof
System Of Collection Framed.
II establishes system Of collection
of the tax at it's source. requiring all
persons. firms. copartncrshtps. com
panics. corporations. Joint stock com
panies. associations ar Insurance com
panies. and all trustees. executors. adj
minIstrators. receivers. etc. aud OH
GERS and employees of the United
states having the control or disposal
of salaries. wages. interest and other
profits aud 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 n specified time. are mad"
liable To n fine not exceeding $500 and
the penalty for false or fraudulent re-
turns Is fixed at 200 or imprison-
mcnt not exceeding one year. or both.
In formulating this additional i'm
post" said Chairman Underwood In
his report. tho attempt has been
made 10 provilc not only source OF
revenue. but also means of redress
| ing i'm some measure the unequal tax
! burdens which result from the prac-
| tice of basing the federal income en-
/ tirrly upon customs and internal reye-
! nue. duties This is system of tax
alton which inevitably throws the bur
den OF supporting the government up
on the shoulders of the consumers
| II correspOndingly excmpts the men
| of larger income. whose consumption
! of the ordinary ncccssarics OF life Is
subject to tariff taxation In far less
| aggregate degree than is that OF small
or income earners. who expend the
greater proportion OF their resources
for the ordinary necessaries OF lie.
Underwood Defends Plan.
Speaking OF the principle of taxa
ton laid down and the graduated sys
TEN 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 b'
no doubt that the same principle ap
plies to the income tax included II
this bill and will be fully upheld
should it ever be called into question
Owing to defects in personal property
taxation. the larger incomes in thu
United states have for many year.
been able to escape with less thar
their share of the general burden o
taxation, and this inequity will be. !
IA believed. in part overcome by tn
plan proposed"
The bill provides that all taxable
persons shall be notified OF the amour
for which they are liable under IN
law on or before the 1St day OF Jun
Of each year and assessments must b
paid on or before June 30. For della.
I'm making payments and ten days af'
or notice. there shall be added tn
sum OF per cent. OF the amount o
tax unpaid and interest at the rate o
1 per cent. a month from the time tn
tax fell due.
The corporation tax provision. II
directed. shall be computed upon II
come for the year ending Decembe
81. 1913, and for each calendar yea
thereafter. 1t is provided however
that corporations may designate TN
last day of any month as the day G
the closing Of the fiscal year and ma
have the tax computed on the basil
of net income ending on its designate
A., All labor AGRICULTURAL hort