The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-04-08
DUTY ON NECESSARIES OF LIFE REDUCED
ANDNEW INCOME AXSTRIKINGF FEATURES
OF NEW TARIFF REVISION MEASURE

tax, that amount making up for the deficit
in revenues TO be derived from imports
, BY virtue of the greatly reduced tariff
rates and the transfer to the free list of
! articles that are classed as necessaries OF
living
Incomes of taxable persons shall include
gains. profits and income derived from
salaries, wages or compensation for per-
sonal service of whatever kind and in
whatever form paid, or from professions,
vacations. businesses, trade, commerce.
or sales Or dealings in property, also from
interest rent. dividends, securities, in
Guiding income from property, income
from but not the value of property ac-
quired by bequest, devise or descent and
also proceeds of life insurance policies
paid upon death of persons lJsured.
The bill allows as deductions in COM
putting net income all necessary expenses
actually incurred in carrying on any bust
ness, not including personal living or fam
lily expenses, interest accrued and pay
able within the year by a taxable person
on Indebtedness; all national, state, coun-
ty, school and municipal taxes, not includ-
ing local benefit taxes; losses incurred
in trades or from fires, storms or ship
wrecks not compensated by insurance or
otherwise; debts actually ascertained as
worthless and charged off; also reason
able allowance for wear and tear on
property, but no deduction will be allowed
for expense of restoration or improve
ments made to increase property value.
A Collection System
It excerpts also, in computing income,
amounts received as dividends upon the
stock of any corporation, joint stoc-. COM
pany. association or insurance company
which is taxable upon its net income I'M
der the corporation tax provision of the
bill
The bill excludes the compensation Of
the President of the United States during
his term judges OF che supreme and in
ferior courts of the United States and
compensation of all officers and employs
of a state or any political subdivision
thereof
1t establishes system OF collection OF
! the tax at its source, requiring all per-
sons, firms co-partnerships, companies,
| corporations, Joint stock companies. asso-
Citations or insurance companies, and all
I trustees, executors, administrators, re-
ceivers, etc, and Officers 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 col
Iector of internal revenue the amount of
income tax due from such person. All
such persons or firms are made personally
liable for such tax.
Persons or corporations liable to
make a return on incomes who fail to
do so at a specified time are made La
BILE to fine not exceeding $500 and the
penalty for false or fraudulent returns
is fixed al $1,000, or Imprisonment not
exceeding one year, or both.
I'm formulating this additional i'm
post" said Chairman Underwood in his
report 1.-THE attempt has been made to
/ provide not only source of revenue,
but also means of redressing in some
measure the unequal tax burdens which
result from the practice of placing the
federal income entirely upon customs
and internal revenue duties. This is a
system of taxation which inevitably
throws the burden of supporting the
| government upon the shoulders of the
consumers. 1t correspondingly ex-
empts the men of larger income, whose
consumption of the ordinary neces-
saries of life is subject to tariff taxa
ton in a far less aggregate degree
than is that of smaller income earners
who expend the greater proportion of
their resources for the ordinary neces-
stiles of life"
Progressive Principle
Speaking of the principle of taxation
laid down and the graduated system
proposed. Mr.. Underwood declared:
THE progressive principle already has
been sustained by the supreme court of
the United States In the Inheritance tax
cases and there can be no doubt that
the same principle applies to the in
come tax included in this bill and will
be fully upheld should it ever be called
into question. Owing to defects in per-
sonal property taxation the larger in
comes In the United States have for
many years been able to escape with
less than their share of general burden
of taxation and this inequity Will be, It
Is believed, in part, overcome by the
plan proposed"
The bill provides that all taxable per-
sons shall be notified of the amount for
which they are liable under the law on
or before the first day of June of each
year and assessments be paid on or be-
fore June 80. For delay in making
payments, and ten days after notice,
there shall be added the sum of per
cent on the amount of tax unpaid and
interest at the rate of 1 per cent a
month from the time the tax fell due.
The corporation tax provision, it Is
directed, shall be computed on the in
come for the year ending December 81,
1913. and for each calendar year there
after 1t is provided however that
. corporations may designate the last
day of any month as the day of the
closing of the fiscal year and may have
income ending on It's designated day.
All labor, agricultural, horticultural,
fraternal. religious and mutual benefit
societies are made exempt from this
proposed tax.
} Important Rate Changes
Important changes in rates not in
cluded In the foregoing follow:
Barley malt, from IS cents to rs cents
bushel
Buckwheat, from Is to cents bushel.
Oats, from 8 cents to 10 cents bushel.
Rice, cleaned, from Q cents to 1 cent
} per pound.
Wheat, from rs cents to 10 cents per
bushel
} Butter from 6 cents to 3 cents per
pound.
Cheese. from 8 cents pound to 20 per
cent ad valorem.
Beans, from As cents to rs, cents per
bushel
Eggs, from 5 cents to cents dozen.
Nursery cuttings and seedlings, from
rs per cent to 15 per cent.
Fresh vegetables, from 25 per cent to
Is per cent.
Apples. peaches etc. from 20 cents
to 10 cents bushel.
Raisins, from 21s cents to 2 cents
pound.
Lemons, present rate liz cents pound !;
proposed new rate, IS cents for pack
age under II cubic feet; IS cents for
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