The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1918-02-27
HOW INCOME TAX
Law WILL WORK
If You Earn Enough You
Will Contribute Share to
Defray War Cost.
RATES ARE DEFINED
Returns Must Be Made to
Government Between Now
and First Of April.

John NJ. Goldbonds--the name is
fictional but there are quite a few
John Ms in the United States--thts
year will pay an income tax OF sl,So0,-
$50. John MS income for 1917 was
So, 100000. 4
John /smithkins--also fictional-
will pay $40. Smithkin's income for
1917 was $4,000. Both are married.
This is an illustration of the opera
ton of the income tax provisions of
the war revenue act of October 3, 1917,
and the act Of September s. 1916, which
preceded 1t and which remains in force.
Returns must be made before April ].
Missoula people may secure blanks
and information at the courthouse.
The Rate Of Taxation.
The normal rate of tax under the
act of 1917 In two per cent on the net
income of unmarried persons In eV-
cess of $1,000. and on the net income
of married persons in excess of $1,000.
Under the 1915 act the normal rate Is
two per cent on the net income OF un-
married persons in excess of $4,000 and
on the net income Of married persons
in excess of $4,000. An extra levy or
surtax ranging from one per cent on
incomes between 5000 and $500 TO
SO per cent en- incomes In excess OF
81, 900 900 Is imposed by the act of 1917.
The act Of 1916, in addition to the
normal tax, imposes n surtax ranging
from one per cent on incomes between
$50, 900 and $4,000 to 10 per cent on
incomes in excess of 100000.
Two Typical Cases.
John NJ. VIII pay two per Get on his
income in excess of $1,000. two per
cent on his income in excess OF $+,ooo.
so per cent on his income In excess of
1000, 900 and IS per cent on his in-
come in excess of 100000. Smith
kins will pay two per cent on his In
come in excess of $4,000.
The income tax as thus shown Is no
longer a rich mans tax but levy so
graduated that every person is as
sessed according to his income. Last
year 100000 persons paid an income
tax. This year the number Will be
more than 100000.
$3.50 ooo, 900 in Individual incomes.
The estimated revenue to be col
lected under the war revenue act OF
1917 IL $2,500,000, 900. of which $780,
100000 is in individual income taxes.
Every unmarried person who made $50
a week or more and every married
person who made $40 week or more
IN assessed. Returns are required OF
unmarried persons whose net income
for the calendar year 1917 was $1,000
or more and of married persons whose
net income Yves $4,000 or more.
The commissioner of internal reve-
nue.. with the approval Of the secretary
OF the treasury, has extended the time
for filing returns from March l &c
April /, 1918. This affords the tax
payer ample opportunity, but to delay
until April Q renders the delinquent
| subject to n fine of not less than SIC
| nor more than 81 900 and an additional
assessment of so per cent of the
| amount of tax due.
Payment Before June IS.
Payment must be made on or before
June IS, 1918. The penalty for falling
! to pay tax when due Is an assessment
| of five per cent on the amount unpaid
! plus interest at the rate of one pc,
cent per month during which 1t re-
| mains unpaid. For making n. false OF
I fraudulent return, the penalty Is {
! fine not exceeding $4,000 or not ex
! ceeding one years Imprisonment. Of
both in the discretion of the court and
in addition, 100 per cent of the tai
| avaAGh