Evening journal., 1917-10-23
INCOME TAX Queries
swamp COLLECTORS
Question on War Revenue
Personal Tariff Out
numbers All Others
NEW CLASSES
ARE INCLUDED

on all the multitudlnous inquiries
which are received In person, by mail
ana by telephone at the office OF the
Collector OF Internal Revenue, concern
ing the operations OF the recently en-
acted war-revenue bill, by far the
larger proportion refers % the tax on
pc sonal income. Although prior TO
October &c the ofllce was swamped with
INQUIRIES from liquor dealers as TO the
method Of Ming their returns for
which that was the last day. the in
Quiries concerning the personal income
tax predominated In numbers even
then. Neither the many business taxes,
the excess-pront taxes. the excise taxes
nor the inheritance taxes invoked the
large number Of questions that were
ashed concerning liability for taxes for
personal Income.
While Deputy Collector Charles
Schneider and his stan has been making
a thorough study Of the law and has
digested its hundreds Of provisions,
the Deputy Collector Is awaiting the
rulings TO be made by the Commits
sioner OF Internal Revenue at Wash
inston before giving interpretations
which he regards as Official.
Interest IN the personal Income re-
turns has been aroused not only be-
cause Of the change IN the minimum
exemption from 5000 % $1,000 for
single persons and from $4,000 20 $1,000
for married persons. but also because
Of the fact that the taxes Ia tho present
law are in addition TO those OF the
law of 1916. which fixed the higher ex-
omptions.
Broadly speaking every unmarried
man who earns more than 1929 a
week and every married man who
earns more than $3.50 week, the
year round, will have TO pay a tax.
This will bring thousands Of men and
women who never before considered
themselves IN the Income class with
In the provisions Of the law
Until the sum OF $1,000 IS reached
this tax is per cent. but In the case
of a single man he will also have 70
pay the , per cent. tax under the law
OF 1916 on all above the minimum ex-
empiion Of $1,000 and the married man
on all above $4,000, plus deductions OF
$500 for each dependent child. After
$1,000 Is reached an additional fiat rate
Of per cent. must be paid, because
all above that Is considered by the
Government "exccss profits"
To take, for example the case OF q
married man without children, earning
the sum Of 5000 q year, an idea OF
how the law works can be given. Hi
must pay per cent. on al above th,
$4,000 1916 exemption. or $50. He mus
pay 2 per cent. on all above $1,000. i9i'
exemption, or si20 He must pay 1 pc
c6nt. surtax on that portion between
$ q 600 and $500. or s25. and per cent
surtax on that portion between $3.50
and $1,000. or $40 In addition he mus
pay excess profits" tax Of per cent
on that portion above $1,000 or $50.
Under The law Of 1916 To- would have
paid only $50 Under the war revenue
law enacted this year he will pafS395
The surtaxes graduate from 4 per
cent - amounts between 5000 and
$500 10 a. per cent. on amounts be-
tween $4,000 and Si,00OO00, and 80 per
cent on amounts above Si.0000O0. Tn
der the old income-tax law there are
also surtaxes ranging from per cent
on the amount between $4,000 and
$4,000 10 10 per cent. on the amount
by which the total net income exceeds