The herald and news. [volume] (Newberry S.C.) 1903-1937, 1913-11-25

However, the fact that blank or
request to pay the tax has not been
received will not exempt taxable per-
son from the penalties of the law.
Representa-, i've Hull Of Tennessee
who drew tne income tax provision OF
the bill last Thursday made public a
detailed explanation of the tax plan
as il will touch the individual citizen.
The treasury regulations soon to
be prepared will make clear TO every
tax payer the requirements Of the law
/ and its application to income derived
from tae various kinds Of business,
said Mr. Hull" "Any person who keeps
familiar with his business affairs dur
ing the year should have no difficulty
in executing his tax return.
"The income tax is divided into two
phases, the normal eax of one per
cent on the whole income above
81, 900 and the additional tax that be-
gins with an extra one per cent above
$4,000 and is graduated to six per cent
above $5O0,O00. Wherever the income
tax is paid at the source by a corp
oration for it's employees or in similar
cases, only the one per cent normal is
so paid. The individual has to pay any
additional tax himself. The provisions
of the law requiring the tax to be
; withheld at the source does not take
effect until November 1, 1913.
,"For the first year the citizen will
make return to the local internal rev.
enue collector before March l, 1914,
as to his earnings from March 1, 1913,
to the end of this year. TIE collector
will notify him June 80. After next
year the tax will apply on full calen-
dar year.
eff the income of person is under
$1,000, or if the tax on same is with
held for payment at the source, or if
the same is to be paid elsewhere in the
Uniied States, affidavit may be made
to such fact and thereupon no return
will be required.
"The tax covers all incomes Of citi-
I,zens of the United States, whether
living here or abroad; those of for
eigners living in the United States
! and the net incomes from property
owned or business carried on in the
United States by persons living
abroad.
"The net income includes all in
comes from salaries or any compensa-
tion for personal services; incomes
from trades, professions, business or
commerce, from sales or dealings in
personal property or real estate,
from interest, rent, dividend and Sc
curities from all lawful business
carried on for gain.
"Bequests will rot be considered
incomes, nor will life insurance paid
to a beneficiary or returned to the in
sured person as a paid up or sur
rendered policy be taxable. Inter
est on such property will be included
as income, however.
"The amount that may be deducted
from total income includes the cost
of carrying on business, actual losses,
depreciation allowances and tax ex-
empt or tax paid money.
Living expenses cannot be deduct
ed, nor can money spent for per-
manent Improvements to property.
"The form that is to be filed out
by the taxpayer soon will be drawn
up by the commissioner of internal
revenue. The taxpayer will have to
give his gross revenue and then speci-
fy and claim the deductions to which
he feels entitled. Unless mans in
come tax is paid at the source he
must hunt up tax blank, fill it out
and see that it finds its way to the
proper official in his district before
March l, 1914.
Firms, corporations and the like
having the handling of interests,
rents, salaries or other portions of the
income of any citizen are compelled
TO. deduct the tax for the individual
and pay it to the government.
"The individual then will get re-
ceipt showing he has paid his tax"
GOVPDNOR'S THANKSGIVING
-reT NUMBERS ONE HUNDRED
(CnNT~UED FROM PAGE ~
and hatterv and giyen three wears