Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1918-01-01
INCOME TAX PLAN
GIVEN IN DETAILS
Earnings Above Certain Figure VIII
Supply Sinews Of War IN Crisis
Pay in instalIments.

washington, Dec 31.-The great
task of gathering income tax and ex-
cess profits returns will begin with
the new year tomorrow.
Every unmarried person earning
more than $1,000 during the last year,
and every married person or head of
family who has made more than $4,000,
must file with the internal revenue
collector of his district report any
time between tomorrow and March !.
He will be notified before June l Of
the tax due, and payment will be due
by June Is,
The government expects TO receive
81 POI 100000 from income taxes be-
fore July /. including $500, 100000
from individuals and S535,0o0,o coo from
corporations. This is more than one
third OF the $4,000 100000 estimated
receipts under the war revenue act
nassed by congress at the last ses-
sion.
From excess profits taxes the gov
eminent expects TO realize about ST.
100000 900 before July /.
The rate of tax for a married man
or the head of family is per cent
on the amount Of his net income ex-
ceeding $1,000, but less than $4,000,
and 4 per cent on the amount of his
net income above $4,000, but less than
$4,000. An unmarried person not the
head of family will pay ? per cent on
the amount of net income above $1,000,
mt less than $4,000, and 4 per cent on
the net income above $4,000, but less
than $4,000.
An extra levy, or surtax, in addition
10 the normal tax, is imposed on in
comes above s. 900. so that the amount
Of net income between $1,000 and ST.
500 is subject to a total income tax,
including both Normal and extra, OF .
ner cent: and between $500 and S10,-
900, 6 per cent The surtay further
increases with higher incomes, so that
amounts Of 100000 are taxable at
&C per cent with l per cent additional
for each half million up to 100000.
All incomes over the latter amount are
taxable at 81 per cent.
Typical income take levies on heads
Of families are as follows: Income OF
$4,000, tax Is $40; income Of $4,000
tax is 500; income of $4,000, tax is
$50; income of $4,000, tax Is $40; in
come Of $4,000, tax Is $50; income OF
5000, tax is $50.
Unmarried persons would pay ir
this way: Income Of $500, tax is $40
income Of $4,000, tax Is $40; income
Of $500, tax is $50; income Of $4,000
tax Is $40; income ct $500, tax Il
$50; income OF $4,000, tax is $50; in
come Of 81, 500, tax Is 800; income o
5000, tax Is S120.
Taxes may be paid in four install
msnts between now and June 10, !
This arrangement is preferred, but tn
treasury will open determined cam
pay their taxes in full Immediately
and receive interest on the advanc
payment.
A small army Of accountants, es
. pecially trained for the work II
schools conducted by district collec
tors for the past two weeks, will g
into the field. beginning Wednesday
to assist persons in fling their re
turns, and will travel on prearrange
itineraries for a month or more. Il
addition, federal agricultural agent
and representatives of state and coun
ty councils Of national defense hav
enlisted in the campaign of education
BY this extensive campaign OF educa
ton Internal Revenue COMMISSIONS
Roper hopes to eliminate the chance
Of failure to file q return through ig
norance Of the requirements.
In fact, officials In charge Of the ia
gathering machine expect to elimin
ate the usual grudging spirit Of ta2
payers. They have called this Lii
erty tax" because its proceeds go
the same war cause as the Libert
bond issues, and every effort will b
made to encourage the spirit Of will
ing giving among those on whom tn
tax falls.
About 100000 persons will pay II
come taxes. II IS estimated, and mos
will be subject to q direct federal ia
for the Arst time. for less than 10000
paid income taxes last year under tn
old law. Tax return forms have bee
made as simple as possible. those ft
Incomes Of less than $4,000 being e!
pecially free from technical feature
or inQu,sltorial items.
Corporations will pay income take
also. but on a different basis The
net income Is subject to tax OF 9 pt
cent under the new war revenue &C
and certain technical deductions al
allowed. Corporation returns are DIT
between Jan. / and March /, for II
calendar year 1917, and companies Of
Grating on fiscal year basis must r,
port within 60 days after the end {
the fiscal year.
Beginning tomorrow, also, exec:
profits returns for the year 1917 wi
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