Milford chronicle., 1917-10-19
Double TAX ON INCOMES
CAUSED BY war LEVY
Unmarried Individuals Who Have
No Dependents. Must Pay When
They Get Over $1,000

II
enacted war income tax law, as it ap-
ulies to individuals, as explained by
Ephraim Lederer, collector of inter
nal revenue in the Philadelphia dis
trict, last week.
The law defines income to include
all gains, profits, wages, salaries,
compensation for personal service,
professions, vOcations, business, COM
mercial trade, sales or dealings in
F.. personal or other property, interest,
rent, dividends, securities or any bus
mess carried on for profit or gain.
The law applies to all citizens and
alien residents in this country.
Individuals who are not married,
with incomes of more than $1,000 an
nually, will be taxed cents on every
dollar of income in excess of the
$1,000. The only exceptions to this
ruling are persons designated as the
heads of families. This exempts
either a man or woman who is the
sole support of a family; it does not
include the support Of relatives out
side the immediate family. The i'm
mediate family does not include broth
ers-in-law, sisters-in-law, cousins or
nephews or fathers-in-law or moth
ers-in-law
The Tax of Sept s, 1916.
In addition to the above tax, single
persons are subject to the income tax
of September s, 1916, which levies a |
tax of 2 per cent. on incomes in ex-
cess of $4,000 annually. When single |
persons are the heads of families they |
are not subjected to this per cent.
tax unless their incomes are more
than $4,000 annually. In all cases the
tax applies to the Smount in excess
of the designated income. For exam
pie: A single person with an income
of $4,000 and who is not the head of a
family would pay total income tax
of $77. 60.
The method of deducting the tax is
as follows: Two per cent. is deduct
ed from the $1,000 of income in ex-
cess of $4,000, as stated in the income
tax law of 1916. The deduction is
$50. From the total income of $4,000
is subtracted the $1,000 exemption and
the $40 tax, leaving s29SO from which
is deducted tax of 2 per cent, which
to $57 so, making the total
income tax to be paid by an individual
Of $77 so annually on an income of
$4,000.
Married persons will be taxed 2 per !
cent. on incomes exceeding $1,000 ;
but where there are dependent child \
rem under 18 years old or any child !
incapable of self-support, there is an Z
allowance of 5000 for each child. The r
same persons are exempt from paying a
any tax under the law of 1916, unless h
heir incomes are in excess of $4,000. c
Married men or women, who have n
IN income of $240O and with only one q
dependent child will pay a tax Of 2 2
Der cent. on the total income, after Il
leducting the exemption of $1,000. q
The tax will then be applied to the /,
200 and will amount to 81. II
When the married mans income is n
n excess Of $4,000, a tax of 2 per cent. b
must be paid on every dollar above a
he $4,000 if he has no dependent chill F
rem. For example: A married man a
With an income of $4,000 and no child h
en- will pay the 2 per cent. tax on in
5000, under the so-called normal in et
ONE tax, and per cent more on the b,
1000 in excess of the $4,000 exempt R
nder the so-called war normal tax. 81
No Tax on Gifts. A
The method of deducting the tax Al
blows: Income, $4,000. Amount ex- NJ
mpt under 1916 law, $4,000. Two per 81
ent tax on balance equals $40. The al
mount to be taxed under the war re
ormal tax is $4,000 less $4,000 exemp-
on. Tax is then applied to $4,000,
,ss amount of exemption and pre-
iously deducted tax of $40, and is
20 90 which is three per cent on FL
1860. The total tax for the persons to
ith an income is S69 20. wi
In addition to these taxes, all per- tn
ms, married and single, must pay a sil
* OF 1 cent on every dollar of in un
)me in excess of $4,000 and up to pi
800 From incomes of $500 to m'
0,000 tax of per cent. is levied op
hree per cent. is imposed on in w
'mes OF $4,000. and the per cent. of tn
xes continues on a scale to cOrre- ma
'ond with the amount Of the income ms
It'll 40 per cent is deducted from in ma
mes Of 100000 or more. the
Doctors, lawyers and other profess wa
Onal men who engage in pursuits pc
lich do not require capital invest MI
ents will be further taxed per "
mt on all the net income in excess dal
$4,000 annually. orS
All persons who receive monetary p
its of any amount are exempt from II
Sation. But this provision of the =
v will not enable any one to give 80
y sum Of money to some one else, Iet 1ie
an effort to evade taxation, because ~ To-
: tax will be applied before the gift nI sis
credited by the government. s.i cei
Charitable institutions will profit ~ NJ
this provision. The largest group IIe
benefit thru this section OF the law '-iiy
I be hotel employees. None Of the .lio aI,1
s that they receive will be tax ,SI0 ~
e. Head walters and others, with llo
ONES as high as $4,000, of which u
y $1,000 are wages or salaries, will
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