El Paso herald. (El Paso, Tex.) 1901-1931, 1917-10-18
The Income and Excess Profits Tax
AS They VIII Affect the Individual


~HE amount Of income tax 10 be.
paid by an individual for the
4 year 1917 is made up in part Of
the taxes levied by the act Of Sep
TENDER S, 1915. and in part OF ne
taxes levied by the present al-s
which was approved, October 9, 1914
The law is exceedingly intricate
and 10 is impossible within any rla-0
souable space to do more than give
% general idea of how the amount
that any individual VIII have 10 pay
may be arrived at. Under the lglt
act as amended. individuals pay 4
tax Of per cent upon net income.
tth AN exemption of $4,000 for
single person and $4,000 for married
PERSONS and $500 Tor each dependent
child under eighteen, and with
provision that only those in receipt
make return and with other deduc-
Uous, such as the expenses OF car
ryiug on business, interest paid on
Indebtedness. taxes paid during the
year, losses and reasonable wear and
tear on property used In business or
trade. etc
Under the 1917 act. individuals pay
an additional tax OF per cent upon
income up 10 $4,000 and with an *
empuOn as 10 this tax OF $1,000 for.
single persons and $1,000 for mar
rled persons and with a provision chat
any person in receipt OF an income as
much as $1,000 If single, and $1,000 If
married, must make return of tnC:r
income 90 the internal revenue col
lector Of their district
Under the 1916 act, no sur-taZ or
super-taE commenced until the in
come exceeded $4,000 per auuum.
but under the 1917 act an additional
tax is added whenever the income
exceeds $4,000
on the amount which the income
exceeds $1,000 but does not exceed
$780, I per cent Is added
on the amount which the income
exceeds $500 but does not exceed
$4,000. . per cent is added
From 100000 $125, 900 add 9 per
cent
From s125oO' to $4,000 add per
From $4,000 to $4,000 add per
From $4,000 to $4,000 add . per
cent.
The Super-Ta1.
such super-raX IS graduated up
ward until the recipient Of an income
OF SLluo,uuO, or more pays 50 per
cent OK that income TO the govern
meut Fortunately there are only q
few OF Us who VIII have TO pay this
tax
1t has not yet been decided whether
.udlVl uuals VIII make two returns,
one under each OF these laws, or one
return from which the taxes levied
by each law Will be arrived az, but
10 is apparent that the recipient Of
an income OF. say $1,000 year, VIII
under the one act, be allowed his
exemption OF $4,000 or $4,000. accord
ing 20 whether he IS married or single.
and VIII pay under that act only =
per cent OF the net income; that is 20
say the balance OF income remain
ing after his exemptions and deduc-
tons have been allowed but under
the other act he VIII pay per cent
on his income I'D TO $4,000. with his
only allowance being Of $1,000 if
single. and $1,000 II married, and he
VIII also pay as super-taX an ad-
dluonal I per cent OF his income over
The individual who has only an
income OF say $1,000, viii not be taxed
under the 1916 act because his eE-
emption VIII wipe out his income, but
pay per cent on $4,000 and II mar
ried. per cent on $1,000.
War Excess Profits Tax.
Although the income tax acts are
fairly intricate and make the average
elcer g head go around the war eE-
cess profits act is still more So and
there are parts Of IL that no one ever
vs. III be sure OF until the last court
has had its say, but as our il
Illustrated individual who has an in
sort Of general idea Of what he is
going 70 be up against in the way OF
taxes 10 is important 10 consider IL a
little.
In the first place. the tax VIII ap-
ply to individuals, as well as corpora
tons and partnerships, and IL viii
cover the income derived from pro-
LESSONS and occupations without cap
ital invested in them as wen as busl- f.
ness or trades with an invested cay
ital
In case o. a trade. business pro-
fession or occupation having no IN
vested capital, there viii be col
lected from q domestic partnership
or q citizen or resident Of the United
states eight per cent OF the amount
which his net income exceeds $4,000
per year. which. in the case OF our
illustrated friend. would be eight per
cent or $500. and this i'm addition
20 what he has already had TO dig
up under the two income tax acts
Ascertaining the Income.
Il IS provided. however. mat the /.
individuals net income for the pur-
pose OF this tax shall be asCertained /
In the same manner as the net In
come is asCertaiue1 under the 1916
act, and this would seem 20 mean.
that iu determining the net income for .
the purpose OF the excess profits tax.
the exemptions OF $4,000 or $1,000 and
Ell PASO