The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1913-04-15

He-Enacte Cooperation Law.
The bill also would re-enact the
present corporation tax law imposing
. per cent tax on the earnings of
corporations. stock companies, insur-
ance companies and the like. but Il
would exempt partnerships. This 10
. Nat tax, there being no graduated
scale IS the earnings increase. The
few changes from the present cor
poration tax act concern chiefly the
time for making returns and the time
for collection.
The bill also includes under its
provisions the property and earn
ings IN this country of persons who
live abroad.
1t is estimated by members OF the
ways and means committee that ap-
proximately $l00.000,0 900 in revenue
may be derived from this new tax. in
cluding the corporation tax. This
would about make up for the deficit
in revenues because of the greatly
reduced tariff rates.
Incomes OF taxable persons shall
include gains, profits and income de-
rived from salaries, wages or com.
pensation fer personal service of what
ever kind and in whatever form paid,
or from professional vocations. busi-
nesses, trade, commerce or sales or
dealings in property; also from in
terest. rent, dividends, securities. in-
GLIDING income from property, income
but not the value Of property acquired
BY bequcst. and also proceeds Of life
insurance policies paid upon death Of
persons insured. M
Provision Made for DeAuctions.
The bill allows as deductions in
computing net income all necessary
expenses actually incurred in carry
ing on any business, not including
personal, living or family expenses; |;
interest accrued and payable within
the year by taxable person on in
debtedness; all national, state, county,
school and municipal taxes. not in
cluding local benefit taxes; losses in-
curred in trade or from fires, storms
or shipwreck not compensated BY in
| surance or otherwise; debts actually
ascertained as worthless and charged
off; 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. ~
1t 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 corr
poration tax provision OF the bill.
The bill excludes the compensation
of the president of the United States
during his term, judges OF the Su-
preme and inferior courts of the
United States, and compensation of
all officers and employees of state
or any political subdivision thereof.
1t establishes q system Of collection
OF the tax at its source. requiring all
persons, firms, copartnerships, COM
panics, corporations, joint stock COM
panies, associations or insurance COM
panies and all trustees, executors, sd-
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 firms are made
personally liable for such tax
Persons or corporations liable to
make return on incomes who fail to
do so at a specified time are made
liable to a fine not exceeding $500,
and the penalty for false or fraudu-
lent returns is fixed at $1,000 or im-
prisonment not exceeding one year, or
both.
Aims to Aid Consumer.
I'm formulating this additional i'm
post said Chairman Underwood in
his report. "the attempt has been
made to provide not only source of
revenue, but also means of redress
ing in some measure the unequal tax
burdens which result from the prac-
tice of basing the federal income en-
tircly upon customs and internal rev.
enuc duties. This is a system of taxa
ton which inevitably throws the bur-
den of supporting the government
upon the shoulders of the consumers.
1t correspondingly exempts the men
of larger income, whose consumption
OF the ordinary necessaries of life
Is subject to tariff taxation in far
less aggregate degree than is that of
smaller income earners, who expend
the greater proportion of their re-
sources for the ordinary necessities
OF life. VIZ
The progressive principle already
has been sustained by the Supreme
Court of the United States il the in
heritance tax cases, and there can be
no doubt that the same principle ap-
plies to the income tax included in
this bill and will be fully upheld
should it ever be called into ques-
tion."
The bill provides that all taxable
persons shalt be notified OF the
amount for which they are liable un-
der the law on or before the first
day OF June of each year and assess-
ments be paid on or before June 80.
For delay in making payments and
ten days after notice, there shall be
added sum of 5 per cent on the
amount of tax unpaid and interest at
the rate of per cent month from
the time the tax fell due. 4
The corporation tax provision, Il 10
directed, shall be computed upon in
come for the year ending Dec. 81.
1918, and for each calendar year
thereafter. II II nroxided. howexer