The Dawson news. (Dawson, Ga.) 1889-current, 1917-11-27
FACTS ABOUT THE
TAXES ON INCOMES
THE WAY IN WHICH THEY WILL
BE COLLECTED AND THE
AMOUNTS DUE.

The official explanation of the in
come tax laws, both the law of Sep
TENDER 8, 1916, and the new war rev.
enue law recently enacted, make
clear the way in which those taxes
will be collected and the amount of
the collections due from incomes of
various proportions. 1t is important
to explain this with full clarity be-
cause of the great new class of peo-
pie that is to be affected under the
lowered exemption standard, and be-
cause of the necessity of Furnishing
failure to make accurate returns at
the proper time.
Three main points should be kept
in mind by those who are newly list
ed as income tax payers. The war
revenue taxes on incomes do not su-
persede or replace the income taxes
imposed by the law of 1916, but both
these taxes will be collected. Neither
of the taxes is collectible on the to-
tai income of any person, but only
upon the amount of income that re-
mains after the exempted amount is
deducted. In case of an income of
such proportions that surtaxes are
collectible, the whole amount of the
income in excess of the allowable ex-
emption is not taxed alike, but a diff
ferent rate of surtaxation is applied
to the parts of the income falling
within the various tax groups.
Taxes Have Been Increased.
Under the law of 1916 no income
of a married man is taxed unless it
exceeds $4,000 a year, and no in
come of an unmarried person is tax
ed unless it exceeds $4,000. Under
the new law the exemption for mar
ried men is reduced to $4,000 and
for unmarried men to $1,000. Mar
ried men also are granted an addi-
tional exemption of $500 for each
child. Thus, a childless married man
with an income of $4,000 a year
would have to pay the war revenue
tax on all in excess of $4,000. In
other words, he would be taxed I'M
der the new law on $4,000 But the
1916 income tax law would become
operative at the $4,000 figure, so he
would be forced to pay also the old
tax on $1,000 of his income. The.
amount of his total income tax would
| be the war revenue tax on $4,000
and the old income tax on $1,000.
Both the old tax and the new one
are based on a normal or basic tax
on the minimum incomes and a sys-
/ TEN of surtaXes graduated to fall
heavier as the income increases. In
severity Of surtax impositioDs the
war revenue tax by far eXcels. The
highest surtax collected under the
/ old income tax act is 1494 per cent.
affecting incomes of 800, 100000 or
more. The highest surtaX fixed by
the new law is 51.85 per cent. also
on $100,000,000 incomes. While, I'M
der the two laws, the man with an
income of $4,000 would pay only
1855 income tax, a small proportion
of his earnings, the man whose in
come is $100,000,000 would be fore
ed to contribute to his government
! $66, 790,780, or more than two-thirds
of it all.
Must Report Before March LIST.
1t is the duty Of all men whose in
come, if they are unmarried, is ST.
/ 600 or more, or, if married, $4,000
or more, to report to the collector
of internal revenue of the federal
district in which he lives the amount
Of his income The report must be
made Immediately after March /,
1918, and must show the whole of
the individuals income in the year
that then will have ended The tax
/ es will be imposed only on net in
comes. But, whether under the sys-
tenn of exemption a mans income is
taxable or not, he must, if it reaches
the prescribed minimum in amount,
make his report to the federal au-
thorities. Penalties for failure are
provided.
In connection with this war time
development, which brings income
taxation home to many people Of
modest means, it is worth bearing in
mind that in all probability the taxa
ton will remain when the war is over.
1t is not likely that after peace comes
there will be much tendency to raise
the exemption standards. Compare
lively small incomes will still be tax
ed when normal times have returned.