Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-02-22
P. C. McDufFie, of Atlanta Bar,
Tells How to Make Out the
Intricate Form Supplied by
the United States Government.
While $4,000 Is Minimum, This
Years Returns Are Based on
$500 Earnings or Profits Be-
tween March and Dec. 81, 1918.
BY P. C. McDUFFlE,
Of the Atlanta Bar.

The income tax is not new thing
That ones ability to contribute to
the support of the Government is
largely a question of income, and not
of wealth, was recognized and the
principle enacted into law many years
before the beginning of our national
career and the adoption of the United
States Constitution. The income was
not taxed, however. at the source,
and for that reason the enactments
were not considered successful. More
recently Wisconsin-proiting by the
experience of her sister States
passed such an act, taxing, as far as
is practicable, incomes at their
source.
The wisconsin law affects the in
come of a single person in excess or
$500. II a man is married his income
Is not taxed unless 1t exceeds $1,000,
and then--in case he has children-he
is entitled to a further exemption OF
5000 for each child under Is years OF
age. and an additional exemption for
each additional person dependent
upon him. Theoretically, the Wis
consin idea is correct, as every in
come, above mere decent subsist-
ences. should contribute; but, as Will
he hereinafter seen, the Federal in
come tax does not take into account
the small wage Garner. but the priyi-
1aee Of contribution under that en-
actment is reserved for a compare
tivelv smaller number of citizens.
The Federal Act.
Section 2. of the act, to reduce tar
If duties, and to provide revenue Tor
the Government and for other pur-
poses. which was approved by Presl-
dent Wilson October 3, 1918, is known
as the Federal income tax law IL IS
founded upon the recently ratihed
s;xteenth amendment to the Consti-
tuition of the United States.
The section In question mas lo'oou
words. a. vast number Of very long
and extremely complicated sentences,
subsections, subdivisions, paragraphs
and provisos. which, as they are not
ALWAYS logically arranged make the
law difficult to understand and cor
rectly interpret.
II il the purpose of this article to
give a short and simple explanation
of the act, and the method Of prepar-
ing the form" which is prescribed
by the Commissioner of Internal Rev
enue.
Return Subject to Normal Tax.
The normal income tax is l per
cent of a persons taxable income, as
ascertained by the method hereinafter
explained
If YOU income. from March I to
December 81, 1918, was in excess Of
$4,000 it will be necessary for you to
file a return. under oath, on or before
March /. 1914. with the Collector Of
Internal Revenue in the particular
district in which you reside. This re-
turn should be made on a four page
form (No. 1000 which will be sup
piled upon application by the Gov
eminent officials, without expense 10
you. Efhe fact that you have received
this form does not necessarily mean
that you will have to file a return Il
you are exempt, nor will the Govern
lnent's failure to send you one OF
these forms, if you are taxa BILE, serve
as an excuse for not making a return.
The law. of course provides that
only those whose income exceeds
$4,000 must file a return, but as 1he
law did not become effective until
March ], 1918, and this years report
covers only ten months, the Treasury
Department has ruled that everyone
whose income exceeds $500 since
March ! must make a return
II husband and wife have separate
incomes. the husband being looked
upon a. the head and legal represen-
tative Of the usehold is supposed
Continued on Page II, Column 8.