The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1913-09-30
HOW THE INCOME TAX WILL
TOUCH INDIVIDUAL, CITIZEN

Washington, Sept 30.-The treasury
department is preparing for flood of
questions concerning the new income
tax, realizing that this feature of the
tariff bill about to become law strikes
more intimately at the tax paying citi-
zen than does the indirect tax collected
through customs duties.
One of the first steps taken to get
general information before the public
will be to distribute income tax blanks
through the post office, internal reve-
nue. offices and other federal agencies.
However, the fact that he does not
receive a blank or request to pay
the tax will not exempt a taxable per-
son from the penalties of the law.
Representative Cordell Hull, of Ten
nesse, who drew the income tax pro-
vision of the tariff bill, Monday made
public a detailed explanation of tax
plan as it 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 the various kinds of business"
said Mr.. Hull.
Amy person who keeps familiar
with his business affairs during the
year should have no difficulty in exc
cutting his tax return.
"The income tax is divided into two
phases, the normal tax of one per
cent on the whole income above
$4,000, and the additional tax that be-
gins with an extra one per cent above
$4,000 and is graduated to six per cent
above 100000 Wherever the income
tax is paid at the source, by a cor
poration for it's employees or in sim
liar cases, only the one per cent nor
NAL 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 |
], 1913.
Paid by June 30.
For the first year the citizen will |
make return to the local internal rev.
enue collector before March /, 1914, as
to his earnings from March /, 1918,
to the end of this year. The collector
will notify him June 1 how much he
owes and the tax must be paid by
June 80. After next year the tax will
apply on the full calendar year.
IF the income of a person is under
$3,000 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 United States. affidavit may be
made to such fact and thereupon no
return will be required.
THE tax covers all incomes of citi-
zens of the United States, whether liv-
ing here or abroad; those of foreign
ers living in the United States and
the net income from property owned
or business carried on in the United
States by persons living abroad.
"The net income includes all in
come from salaries or any compen-
sation 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 securities;
from all lawful business carried on
for gain.
Gifts or requests will not be con-
sidered income, nor will life insur-
ance paid to beneficiary or returned
TO the insured person as paid up or
surrendered policy be taxable. Inter-
est on such property will be included
as income, however.
The Deductions.
''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 ex-
penses cannot be deducted nor can
money spent for permanent improve
ments to property.
THE form that is to be filled out
by the taxpayer will be drawn up
soon by the commissioner of internal
revenue. The taxpayer will have to
give his gross revenue, and then
specify and claim the deductions to