The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-10-18

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,,e of their profits and for the man!
who must hereafter pay income tax
rr,oortainty and lack of knowledge a.
- what the law covers and really
cans has caused much trouble in
business circles. BY a study of the
following article the measure is made
oIear The definition of capital in
uosted" is given and formula shown
far figuring excess profits" and your
.oxable income. Better file, this copy
- The Miner away for reference af-
TOR January /, when the revenue col
,octor will ask for a statement con-
corning your income.
with the passage of the war reye-
me bill every American man. woman
and child becomes federal taxpayer.
You can not buy any article that
has been freighted by rail or water;
Won can not ride on a train; send a
telegram; visit theater or ball park
buv a bottle Of patent medicine,
baseball bat or any other kind of
sporting goods a tube of tooth paste
or any other toilet article; own an
automobile, motorcycle or motor
boat draw a time draft buy bond
or share Of stock, ,or send in a proxy
for an election, without paying tribute
to your Uncle Samuel.
Moreover, through the income and
excess profits taxes, not less than S.
100000 Americans, who have never
known what 1t is to take money out
OF their pockets and pay it over di-
rectly to Uncle Sans collectors will
now have to learn to make out their
tax returns and master all the nitric
acies of calculating gross and net in
come, capital invested, depreciation
and exemptions.
The income tax now reaches down
and takes its levy from every married
man or woman with an income over
$4,000, and every unmarried man or
woman with an income over $1,000, and
the war profits tax reaches every cor
poration with net income over $4,000,
and every partnership and individual
operating business which yields
more than $4,000 net income during
this year.
Every one Of these five million new
taxpayers ought to learn as soon as
possible how to figure their taxes so
that they can now plan for the read
justments in their business and per-
sonal affairs which these relatively
heavy federal taxes will necessitate.
In order to enable them to make
these calculations without calling in a
lawyer or wading through the intrica-
cies of the 130-page revenue bill, the
following simple analysis of the war
profits and income taxes has been pre-
pared, with the assistance of Wash
ington's leading tax experts.
The Income Tax-Who Must Pay.
Every unmarried man, woman or /
child with net income from wages,
profits, interest, rent or any other /
source exceeding $1,000 for the calen-
dar year 1917, and every married per-
son with a net income exceeding $4,000 |
Returns must be made under oath on ,
or before March 1, 1918, by every per-
amounts named above. even if there is !
no tax due, under penalty of 500 to |
$1,000 for failure.
How to Calculate Net Income.
Net income, upon which the tax is
levied is calculated by taking the to-
tai amount of money received by the |
individual during the year from all
sources and deducting from that
amount the following items:
Necessary expenses actually paid in |
carrying on any business or trade, but
not including personal, living or fam
lily expenses.
All interest paid within the year on
indebtedness, except interest on
loans made for the purchase of tax ex-
empt securities.
All taxes, local. state and federal,
except income and war profits taxes.
Losses actually sustained during the
sedi III BUSINESS OF tTdue VI lIoiii iicS,
storms, theft, etc.
Debts ascertained to be worthless
and actually charged off.
Reasonable allowance for wear and
tear Of property employed in business.
Contributions for religious, charit-
able, scientific or educational purposes
to an amount not in excess of 10 per
cent of the net income without the
benefit of this paragraph.
Exemptions.
Unmarried persons have $1,000 ex-
empt from income tax; married per-
sons have $4,000 exempt and in addi-
ton 5000 exempt for each dependent
child under Is years of age.
Tax Rates.
The taxes levied upon incomes are
composite result of four separate
sets of taxes, the normal tax rates
In the old revenue bill and the new,
and the "supertax" rates in the old
Dill and the new. For example, under
the old law there was a normal tax or
per cent on all income of unmarried
persons over $4,000, the new bill adds
new normal tax of 2 per cent ana
~ To