The states-graphic. (Brownsville, Tenn.) 1???-1984, 1917-10-12

Washington, Oct. 3.-With the pas
sage of the war revenue bill every
American-man, woman and child
becomes a federal tax payer.
You cannot buy an article that ha:
been freighted by rail or water, yor
cannot ride on a train, send a tele'
gram, visit theatre or ball park, buy
a bottle of patent medicine, baseball
bat or any other kind of sporting goods
a tube of tooth paste or any other toi
let article, own an automobile, motol
cycle, or a motorboat, draw a tim'
draft, buy bond or share of stock, OF
send in proxy to an election, without
paying tribute to your Uncle Samuel
The income tax reaches down anC
takes its levy from every married mar
or woman with an income over $4,000
and every unmarried man or woman
with an income over $1,000, and thu
war profits tax reaches every corpora
tion with a net income over $4,000
and every partnership and individual
operating business which yields more
than $4,000 net income during this
year.
In order to enable them to make
these calculations without calling in
lawyer or wading through the intrica
.cies of the 130-page revenue bill, tht
following simple analysis of the wal
profits and income taxes has been pre-
pared, aith the assistance of Wash
ington's leading tax experts:
The income tax-Who must pay
Every unmarried man, woman or chile
with net income from wages, profits
interest, rent or any other source ex
,ceeding $1,000 for the calendar veal
1917, and every married person with
net income exceeding $4,000.
Returns must be made under oatl
on or before March /, 1918, by every
person with an income exceeding th'
amounts named above, even if there i
no tax due, under penalty of $50 t
's@1 ,CVU for failufe.
How to calculate net income: Ne
income, upon which the tax is levied
is calculated by taking the tota
amount of money received by the indi
vidual during the year from all sources
and deducting from the amount th'
following items:
Necessary expenses actually pait
in carrying on any business or trade
but not including personal or famil!
living expenses.
All interest paid within the yea
on indebtedness, except interest OF
loans made for the purchase of ia,
exemption securities.
All taxes, local, state and federal
except income and war profits taxes.
Losses actually sustained during th'
year in business or trade, or from fire.
storms, thefts, etc.
Debts ascertained to be worthless
and actually charged off.
Reasonable allowance for wear ant
tear of property employed in business
Contributions for charitable, relig
ious, scientific or educational purposes
to an amount not to exceed Is per cen
of the net income without the benef
of this paragraph.
Exemptions: Unmarried persons
have $1,000 exempt from income tax
married persons have $4,000 exemp
and in addition 5000 exempt for eacl
dependent child under Is years of age
Tax Rates: Under the old law ther,
was a nominal tax of 2 per cent Oh
all incomes Of unmarried persons owe,
$4,000, the new bill adds new nomi
nal tax Of 2 per cent and lowers tn,
exemptions to $1,000 Under the oil
bill supertaxes started with $4,000
and these supertaxes still stand, bu
there have been added new supertaxe
beginning with $4,000.
If you are married, with no children
and have an income Of $4,000, you will
pay no tax on $4,000, which is exemp
under the law. On the $4,000 falling
into the tax group S2,000-S4,000, yol
will pay 2 per cent, or $40; on th'
$1,000 falling in the tax group $4,000
$4,000, you will pay A per cent, or $40
on the ST. 900 between $4,000 and SIS, ,O0O
5 per cent, or $50, making a total in
come tax of $3.50.
If you have two children under Il
years, you have an exemption of 500
for each, so that you would pay no tal
on $2,400, per cent on $1,000 between
your $2,400 and $4,000, per cent OF
$1,000 between $4,000 and $4,000;
per cent on $1,000 between $4,000 ant
$4,000, making a total tax of S122.
Combined normal and supertax rate
under old and new bills; Rates show
apply to amount of income fallin,
within each tax group and not to tn,
income as a whole:
UNMARRIED
Tax Group Tax Rate.
0 to S1,00O--- 4
$1,000 S,OO0--
5000 5,O00-
MARRIED
5000