Courier Democrat. (Langdon, N.D.) 1891-1920, 1917-09-20

WE& tUWWAD v
Amount to Be- PAID if Bill Now
Pending Becomes Law.
EXEMPTIONS MUCH LOWER
Single Men Must Pay on All Over $1,000
Fer Year, While Married Men Must
Pay on All Over so,ooo-The More the
Income the Larger the Percentage of
Tax.
To settle the confusion over the in
come tax section of the new revenue,
experts Of the treasury department
have made the following compilation of
taxes that will be paid by married men
under provisions of the new bill:
Two thousand dollars income is ex-
empt from taxation.
Three thousand dollars income pays
$40.
Four thousand income pays $40.
Five thousand pays $50.
Six thousand pays $130.
Seven thousand pays $3.50.
Ten thousand pays $355.
Twelve thousand pays $495.
Fifteen thousand pays $3.50.
Twenty thousand pays $1,1SO.
Fifty thousand pays $4,7S0.
One hundred thousand pays $14,1S0.
One million pays $400,1S0
Ten million pays $4,SS5, $50.
The maximum is reached on $780,
100000. Anybody having that income
must pay $49,SS5,1SO in tax, or just un-
der 80 per cent.
In the case of a single man there is
an increase of 500 on all these amounts.
He will be taxed $40 on a thousand
dollar income, $40 on $4,000, $50 on
$4,000 and so on.
1919 SShPoSAStSho IN ~ VII I'LL
Interpretation that the proposed law
continues the present income tax law
and it's rates in force and merely super
imposes additional war taxes. There
fore to figure out the tax on any par
ticular income it is necessary to ascer-
tain first the tax at present levied and
then add the proposed new tax to that
amount.
There is further complication on &C.
count Of lowering the exemption. This
problem can be simplified, however, by
following the rule that incomes up to
and including $1,000 for married per-
sons and $4,000 for single persons will
pay only the present tax rate of 2 per
| cent.
Their increase is only the single one
of lowered exemption and not the dou-
BILE burden Of lowered exemption and
increased. rate that will fall upon in
comes above $4,000.
How a Married Man Figures.
A married person with an income of
$4,000 figures his tax in the following
III
Income, $4,000; exemption, $1,000; liza
bic for tax, $1,000; rate, 2 per cent;
total, $40. A $4,000 income pays 2 per
cent on $4,000. A $1,000 income figures
the tax as follows: Total income, $5,-
600; exemption, $4,000; liable for tax,
$4,000. Two per cent tax IN the $4,000
between two and four thousand, due
to the lowering Of exemption, equals
$40. New 4 per cent tax OH the 81, 1000
between four and five thousand equals
$40; total tax, $50.
A $1,000 income is figured as follows:
Exemption, $4,000; liable for tax, 3d.
600, two thousand Icing the amount
between two and four thousand on ac-
count Of lowered exemption, charged
at 2 per cent, equaling $40; $1,000 be-
ing the amount between four and sew
en- thousand, charged at 4 per cent,
equaling $120; surtax Of ! per cent on
$4,000 being the amount above $4,000
where surfaces begin, 500. Total tax,
$3.50.
In the debates there have been con.
fusion and difference among members
on how to figure the income tax. Rep.
resentatire Fordney, ranking Republic.
all member Of the ways and means
committee, gave a different i%nterpreta
ton in his speech from that Of the
Democratic majority understanding
and the treasury ruling. The point OF
difference applied chiefly to small in
comes, whether the first $4,000 Of in
come above the exemption would pay
at the present rate of 2 per cent or the
new rate Of 4 per cent.
According to the Fordney interpreta
ton, a $4,000 income of a married mar
would pay $40, a $4,000 income $50 ant
a $4,000 income $500. 81