The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1913-04-17

ries Of living.
Incomes Of taxable persons shall
include gains. profits and income de-
rived from salaries, wages or COM
pensation for personal service OF
whatever kind and In whatever form
paid. or from professions. yocations.
business, trade. commerce or sales or
dealings in property, also from inter
est, rent. dividends, securities, includ-
ing income from property income
from but not the value Of property
acquired by beQuest, devise or de-
scent, and also proceeds Of life insur-
ance policies paid upon death Of per
sons insured.
Provision Made for Deductions
The bill allows as deductions in
computing net income all necessary
expenses actually incurred in carrying
on any business, not including per
sonAl living or family expenses. inter
est accrued and payable within the
year by a taxable person on indebted
ness: all national, state. county,
school and municipal taxes. not In
cluding local benefit taxes; losses IN
Cured In trade or from flreG. storms
or shipwreck not compensated by IN
surance or otherwise; debts actually
Ascertalned an worthless and charged
of; also reasonable allowance for
wear and tear on property; but no de-
duction will be allowed for expense
OF restoration or improvements made
to increase property value.
II excepts also, in computing net In
come, amounts received as dividends
upon the stock Of any corporation,
Joint stock company, association or
insurance company which Is taxable
upon its net income under the cor
porRtion tax provision of the 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 the
United States. and compensation Of
all oflcers and employees Of state or
any political subdivision thereof.
System Of Collection Framed.
1t establishes a system of collection
of the tax at it's source, requiring all
persons, firms, copartnerships, CON-
panies, corporations, Joint stock COM
panies, associations or insurance com.
panies, and all trustees, executors. ad-
ministrators, receivers. etc, and Off.
GERS 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 collector
Of internal revenue the amount Of In
come tax due from such person. All
such persons or Arms are made per
sonally liable for such tax.
Persons or corporations liable to
make return on incomes who fail tc
do 80 at a specified time, are made
liable to a fine not exceeding $500 and
the penalty for false or fraudulent re
turns Is fixed at $1,000 or imprison
ment not exceeding one year, or both
I'm formulating this additional i'm
post" said Chairman Underwood IN
his report, "the attempt has been
made to provile not only source Of
revenue, but also means OF redress
ing in some measure the unequal tar
burdens which result from the prRc
tice of basing the federal income en-
tirely upon customs and internal reve
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
1t correspondingly exempts the mer
Of larger income, whose consumption
Of the ordinary necessaries of life II
subject to tarin taxation in a far lest
aggregate degree than is that OF small
er income earners, who expend the
greater proportion Of their resources
for the ordinary necessaries OF life
Underwood Defends Plan.
Speaking Of the principle of taxa
tion laid down and the graduated sys
tenn proposed, Mr.. Underwood de
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 be
no doubt that the same principle ap
plies to the income tax included II
this bill and will be fully upheld
should 1t ever be called into question
Owing to defects In personal property
taxation, the larger incomes in the
United States have for many years
been able to escape with less thar
their share OF the general burden o.
taxation, and this ineQuity will be, Il
Is believed, in part overcome by thu
plan proposed"
The bill provides that all taxable
persons shall be notified Of the amoun
for which they are liable under thu
law on or before the list day Of JUNE
Of each year and assessments must b.
paid on or before June 30. For delay
In making payments and ten days aft
er notice, there shall be added th'
sum of s per cent. Of the amount o.
tax unpaid and interest at the rate O
per cent. month from the time thu
tax fell due.
The corporation tax provision, 1t Il
directed. shall be computed upon in
come for the year ending December
81, 1913, and for each calendar yea
thereafter. 1t is provided. however
that corporations may designate th'
last day OF any month as the day O
the closing Of the fiscal year and MAJ
have the tax computed on the basil
of net income ending on its designated
day. All labor. agricultural, horti
cultural, fraternal. religious and mu
tual benefit societies are made exemp
from the tax.