The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-12-31

CONTINUED from Page One-)
so that amounts of 81, 900, 600 are tax
able at IS per cent with 1 per cent
additional for each half million up to
two million dollars. All incomes over
the latter amount are taxable at 81
per cent.
$40 on $4,000 Income.
Typical income tax levies on heads
of families are as follows: Income of
$4,000, tax is $40; income of $4,000,
tax is $40; income of $4,000. tax is
$50; income of $4,000, tax is $40; in
come of $4,000, tax is $50; income OF
$4,000, tax is $50.
Unmarried persons would pay in
this way: Income of 1900, tax is
$40; income of $4,000, tax is. S2O; IN
come of $2.5OO, tax is $50; income OF
$4,000, tax is $40; income of 800,
$50; income of $4,000. tax is 500; in
come of $4,000. tax is $3.50.
PAID in Four InstaIlments.
Taxes NAV be paid in four INSTALL
ments between now and June Is, II
this arrangement is preferred, but the
treasury will open a determined cam
paign soon to encourage persons 10
pay their tax in full Immediately, and
receive interest on the advance pay
inert.
A small army of accountants. es-
pecialIy trained for the work in
schools conducted by district coLec-
tors for the past two weeks, VIII go
into the field beginning wednesday
to assist persons in filing their re-
turns, and will travel on prearranged
itineraries for a month or more. In
addition, federal agricultural agents,
and Representatives of state ana
county councils of national DEFENSE,
have enlisted in the campaign of edu-
cation. BY this extensive campaign of
cd Int Revenue
missioner Roper hopes to eliminate
the chances of failure to file a return
thru ignorance of the requirements.
Call Liberty Tax"
In fact. officials in charge of the
tax gathering machine expect to
eliminate the usual grudging spirit OF
taxpayers. They have called this a
Liberty Tax" because its proceeds
! go to the same war cause as the Liber-
ty Bond issues, and every effort will
be made to encourage the spirit of
willing giving among those on whom
the tax falls.
About 100000 persons will pay in
come taxes it is estimated, and most
will be subject to a direct federal tax
for the first time, for less than 5OO,-
900 paid income taxes last year UNI
der the old law. Tax return forms
have been made as simple as possible,
those for incomes of less than $4,000
features or inquisitorial items.
Corporations on Different Basis.
Corporations will pay income taxes
also, but on a different basis. Their
net income is subject to a tax of 6
per cent under the new war revenue
! act, and certain technical deductions
are allowed. Corporation returns are
/ due between January I and March l,
| for the calendar year 1917. and com
panies operating on a fiscal year basis
| must report within so days after the
| end of the fiscal year.
| Beginning tomorrow also, excess
profits returns for the year 1917 will
nerships and individuals. The last
date for the filing of these is March
| l, the same as on income returns, and
payment must be made also before
June Is, except UNDER the fiscal year
/ arrangement.
| individuals making more than S.
! 900 during the year also are subject
to an 8 per cent tax on their income
above that amount, Independent of the
regular income taxes. This 8 per cent
I levy is imposed on individuals with no
capital. or with only nominal CAPT
( tai. such as professional men with
money invested in books dentist and
physicians instruments, or other
| equipment.
On Excess Business Profits.
Another kind of tax is laid on ex-
cess profits of businesses having in
vested capital. On this basis, taxes on
net incomes or profits in excess of
certain deductions are at the rate of
90 per cent of the amount of net in
| come in excess of the deduction and
not in excess of 5 per cent on the in
vested capital; 25 per cent on the
amount in excess of Is per cent and
not in excess of 20 per cent; 35 per
cent on the amount in excess of 20
per cent and not in excess of 25 per
cent; 40 per cent on the amount in
| excess of IS per cent and not in ex-
cess of 80 per cent; and so per cent
on the amount in excess of 33 per cent.
| Before tax is levied on excess pro-
fits. for 1917, business is permitted
to make the same percentage of pro-
fit on its invested capital that it made
on it's invested capital during 1911,
1912, and 1918, the so-called pre-
war" period. providing this is not more
than nine per cent, and $4,000 adj
ditional for a corporation or Sc, 900 for
a partnership or individual. These are
the deductions which are not taxable.
Assessments Duplicate.
Definitions of terms, particularly
the items making up invested capi-
tal," have been made in a number Of
recent regulations issued by Commits
sioner Roper.
Excess profits taxes and income
taxes may he imposed on the same
earnings. if thew are sufficiently high
The law specifies. however. that the
amount of tax payable under the ex-
cess profits provision may be deducted
from gross income, before determiu.
ing the net income on which income
taxes are paid.
Z