Atlanta Georgian., 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. McDuFFIE,
Of the Atlanta Bar.


That ones ability to contribute to
.he 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
we're not considered successful. More
recently Wisconsin-profiting by tho
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 single person in excess OF
$500 n man is married his income
is not taxed unless it exceeds $1,000,
and then-in case he has children-he
is entitled to a further exemption of
$500 for each child under 1S 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
be hereinafter seen, the Federal in
come tax does not take into account
the small wage Garner, but the privi-
lege OF contribution under that en-
Rctment is reserved for compare
lively smaller number of citizens
The Federal Act.
Section 2, of the act, to reduce tar
If duties, and to provide revenue for
the Government and for other pur-
poses, which was approved by Presi-
dent Wilson October 8, 1918, is known
as the Federal income tax law. 1t is
founded upon the recently ratified
sixteenth amendment to the Consti-
tuition of the United States.
The section in question has 10000
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
1t is 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 1 per
cent Of a persons taxable income, as
ascertained by the method hereinafter
explained.
II you income. from March 1 TO
December 81, 1913, was in excess of
$1,000, it will be necessary for you to
ME a return, under oath. on or before
March l, 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. 1040), which will be sup
pied upon application by the Gov
ernment officials, without Expense to
You. The fact that you have received
this form does not necessarily mean
mat you will have to file a return If
you are exempt, nor will the Govern
ment's failure to send you one Of
these forms. if you are taxable, serve
as an excuse for not making return.
The law, of course, provides that
only those whose income exceeds
$4,000 must file a return, but as the
law did not become effective until
March l, 1918, and this years report
covers only ten months. the Treasury
department. has ruled that everyone
whose income exceeds $4,000 since
March l must make a return.
II husband and wife have separate
incomes. the husband being looked
upon as the head and legal represen-
1ative Of the usehold, is supposed
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