The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1917-11-08
UNCLE SAMLEVIES
HEAVY TAX TOLL
INCOMES OF OVER $1,000 PER
YEAR MUST HELP PAY
FOR WAR,
Big Farmers HIT HARDEST
STATEMENT SHOW.
ING HOW THE PERCENTAGES
ARE DIVIDED.

AXE DIVIDED.
Wnen nation goes to war the tax
burden OF its people must be multi
Piled, fact that is coming home to
us forcibly these days. There are but
two ways in which the nation can pro-
vide funds for war. One is by tax
ton and the other by bond issue
that carries forward the burden for
future payment making it easier by
distributing the amounts into smaller
sums and including future genera
lions in the payment. Uncle Sam is
employing both methods in financing
the present war. He has just com
pleted thorough canvass O.. the coun-
try for the sale of bonds and early
next year all single men with a net
income of $1,000 and all married men
who annually clear $4,000 or more.
will be called upon to pay over a good
~ portion of the amount as taxes for
war purposes.
A great many are not familiar with
the provisions of the new income tax
law enacted by the last congress but
it is time that they commenced study
ing it in order to be prepared to give
the information that will be required
OF them before many weeks have pas
sed.
Who must pay? Every unmarried
man, woman or child with a net in
come from wages, profits, interest,
rent or any other source exceeding
$1,000 for the calendar year 1917, and
every married person with a net in
come exceeding $4,000.
Return must be made under oath on
or before March 1, 1918, by every per-
son with an income exceeding the
amounts named above, even if there
is no tax fixed, under penalty of $40
to $1,000 for failure.
How to calculate net income. Net
income, upon which the tax is levied,
is calculated by taking the tota'
amount of money received by the indi-
vidual during the year from all sour
ces and deducting from that amount
the following items:
Necessary expenses actually paid il
carrying on any business or trade, hut
not including personal, living or fam
lily expenses;
All taxes, local, state and federal
except income and war profits taxes:
Losses actually sustained during tn
year in business or trade or from fires
storms, theft, etc.
Debts ascertained to be WORTHLESS:
and actually charged off.
Reasonable allowance for wear ant
tear of property employed in business.
Contributions for religious, chart
table, scientific or educational purpo-
ses to an amount not in excess of !
per cent of the net income withou
the benefit of this paragraph.
Exemptions Unmarried person
have $1,000 exempt from income tax
married persons have $4,000 exemF
and in addition 5000 for each Deepen
dent child under 10 years of age.
Tax Rates. The tax levied upor
incomes are composite result of fou
separate sets of taxes, the normal
tax rate in the old revenue bill ane
the new, and the "supertax" rates ir
the old bill and the new. For example
under the old law there was norma
tax of two per sent on all income o,
unmarried persons over $4,000, Tho
new bill adds new normal tax of two
per cent and lowers the exemption o.
81 900; under the old bill supertaxe
started with $4,000 and these super
taxes still stand, but there have bee1
added. new supertaxes beginning wit
$4,000. The result is very confusing
In order to bring all the existinf
rates into simple form, we have com
bined them in a single table whlc
shows for every separate class Of II
come, the total tax rate that will b
levied upon it. The method Of us'n
the table can best be explained by
simple example:
If you are married with no children
and you have an income of $6,OOs
you will pay no tax on $4,000 which i
exempt under the law. On the $2,OW
falling into the tax group $2,OOO-S4
900 you will pay per cent, or $40; or
the $1,000 falling in the tax groul
S4,00O-$5, 900, you will pay per cent
or $40; on the 81 900 falling in the tar
group $5,0O0-$6,O0O, you will pay
per cent, or $50; making total in
come tax of $130.
If you have two children under Is
years, you have an exemption Of S?O(
FOR each, so that you wolli pay nc
tax on $2,4OO; per cent On $',6OO he
tween your $2,400 exemption and ST.
600; A per cetn on $1,000 between S4,-
eco and $4,000 and $4,000. making a