American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1913-10-09

municipal taxes paid within the yea
Trade losses. or storm or fire
losses. not covered by insurance.
Worthless debts charged OF during
the year.
A removable allowance for the de
probation OF property.
Dividends from companies whose In
comes have already been taxed.
Interest from state, municipal or
government bonds.
Must be Entire met Income"
II is a clear provision OF the law,
however. that the taxable person must
make a return TO the internal revenue
collector for his entire met income
and exemptions claimed under the law
must be submitted to the federal off,
GERS FOR them TO determine upon their
r~easonableness or legality.
The amount of the income tax, as
finally agreed upon. follows:
From $4,000 to $4,000. l per cent;
from $4,000 to $4,000. 2 per cent;
from $4,000 to $4,000. 3 per cent;
from $4,000 to 800. 900. 4 per cent.
500. 900 to $3.50 900, 5 per cent, $780,
900 to $500, 900. 6 per cent; above
$500. 900. 7 per cent
A single man with an income of
$685. 00. for example. would pay l per
cent on e17. 900 and 2 per osnt on $500,
a total tax Of ts70. II married. tho
nrst TAI OF l per pant. would apply to
only $4,000 Of the income.
Ready b Answer ousstisns-
The treasury department II prspar
Ing for . food Of questions about the
new income tax. realizing that this
feature OF the tariff bill about to be-
come law strikes more intimately at
the tax paying citizen than do the
indirect taxes collected through the
customs duties.
One OF the first steps taken to get
general Information before the public
viii be to distribute income tax blanks
through postoflces. internal revenue
officers, and other federal agencies.
However. the fact that he does nrt re-
ceive a blank or q request TO pay The
tax will not exempt q taxable person
from the penalties Of the law.
Representative Cordell Hull OF Ten.
.nessee. who drew the income tax pro
vision of the tariff bill which will soon
become law, made public a detailed
explanation Of the tax plan as 1t will
touch the Individual citizen.
THE treasury regulations 0 to
be prepared will make clear to every
taxpayer the requirements OF the law
and its application to income derived
from the various kinds OF business
Mr.. Huh said. ANY person who keeps
familiar with his business affairs. dur.
Ing the year should have no difficulty
in executing his tax return.
How Tax 10 Divided.
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
10000 and Is graduated to six per
cent. above $500. 900. Wherever the
Income TAI Is paid at the source by a
corporation for its employees or in SINH
lar cases. only the one per cent. nor
NAL tax Is 80 paid.
The individual has to pay any a.
ditional tax himself, The provisions
OF the law requiring the tax to be
withheld at the source does not lake
effect until November /. 1918.
For the first year the citizen will
make return to the local internal reve-
nue. collector before March 1. 1914,
as to his earnings from March 1. 1918.
10 the end OF this year. The collector
VIII notify him June l how much
he owes and the tax must be paid
by June 30. After next year the tax
viii apply on the fun calendar year
IF the income OF a pcrscn Is under
$4,000. or II the tax upon same is
withheld for payment at the source
or II the same is 10 be paid elsewhere
In the United States. afldayit may be
made to such fact and ~thereupon no
return viii be required.
Covers Incomes OF All Citizens.
The tax covers all incomes OF citi.
zens Of the Omitted States. whether liy-
Ina here or abroad: those OF foreign.
ers living In the United States. and
the net incomes from property owned
OF business carried on In the United
States by persons living abroad
The net income includes all In
come from salaries or any me
ton for personal services: incomes
from trades. professions. business. or
commerce: from sales or dealings In
personal property or real estate: nom
Interest. rent. dividends from seeuri.
ties: for all business carried on for
gain.
"Beouestxl) gM - b. considered in.
a1Is to