Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1918-02-20
Two and a Half Billion Dollars
viii Be Collected Under War
Revenue Act.
IS CALLED THE LIBERTY TAX
Every Married Man or Head Of a Fam
lily Having an income of $1,000 a
Year and Every Single Man
Having an Income of ST.
900 Must File a Return.

Nashington.-Seyen million taxpay-
ers will contribute this year, In pro-
portion to their income, to the cost of
the war. The estimated revenue to be
collected under the war revenue act of
October 3, 1917, Is $500, OCT, 900, of
which s666,000.000 is in individual In
come taxes. More than 6,000.000 per-
sons who never before have paid an
income tax viii be assessed.
'Aiberty tax" is the designation CIV
en- the levy by Daniel c. Roper, COM
missioner of internal revenue. The
title Is an apt one, for the revenue to
be derived under the war revenue act
and the proceeds from the sale of the
Liberty bonds are TO be used for the
same purpose. to feed, clothe and fur
nish with ammunition the American
armies. The owner of a Liberty bond
is entitled TO feel pride also In the
possession of an Income tax receipt.
Many persons shared In the prosper
ity of 1917. Merchants, farmers, bust
ness and professional men and en-
ployees were beneficiaries. To insure
a continuance of prosperity each must
assume a share OF the common bur-
den-a burden so distributed that
every man Is assessed according to his
income. Better for the American peo-
pie to pay to their own government
Liberty tax of S2,5o0. 600, 900 than a war
indemnity to Germany Of many times
that amount.
Who Must File Returns.
Now is the time tosflle your income
tax return.
Income tax forms may be had from
collectors of internal revenue. These
have been prepared in the simplest
form possible and with a little care
and attention taxpayers should be able
TO fill them out to the satisfaction Of
themselves and the government.
If married or the head of a family,
and your net income for 1917 was ST.
600 or more, you are required to file
with the collector OF internal revenue
in the district in which you live a re-
turn Of your income for the calendar
year. If single and your income was
$1,000 or more you are required to
make such a return. These returns
must be In the hands of collectors not
later than March /, 1918.
The normal rate of tax under the
war revenue act of october 8, 1917, is
2 per cent on incomes above the
amount of exemption, which is $1,000
In the case of married persons or heads
OF families and $1,000 in the case of
single persons. The old income tax
under the act of 1916 still is in effect,
so that the total OF your tax will be
the sum of these taxes added together.
Under the act of 1916 the normal rate
of tax is per cent on incomes of mar
rled persons In excess of $4,000 and
on incomes of single persons In excess
of $1,000.
For example. If you are married and
your net income for 1917 was $1,000
you will be taxed $50. This is 2 per
cent on the amount above the exemp-
ton Of $1,000 under the act of 1917 and
per cent on the amount above the
exemption Of $4,000 under the act of
1916.
Exemption for Children.
If married or the head of family
you are allowed an additional exemp-
ton Of $500 for each dependent child,
If under eighteen years of age or In
capable of self-support because defec-
tive. A taxpayer il considered to be
the head of a family II he is support
ing one or more persons closely con-
nected with him by blood relationship
relationship by marriage, or IL his duty
to support such person is based on
some moral or legal obligation.
Women as well as men are subject
to the tax.
The combined net income of a mar
ried couple living together is assessed.
If, for example, the husband earns
$1,000 and the wife $1,000, they will
have to pay tax of $40. provided they
have no children.
A widow. woman living apart from
her husband, or maid Is assessed on
her net income above $1,000.
met income" means gross income,
less certain deductions provided for by
the act.
In arriving at your net income you
are allowed to deduct from gross In.
come all expenses actually paid during
the year In the conduct Of business
trade or profession. These include
the amounts paid by farmer in pre-
pairing his land for a crop and the
cultivation. harvesting and marketing
of the crop, the cost of seed and fer.
tilizer used, the amount expended fol
labor in caring for live stock and the
cost Of feed. The farmer may deduct
also the amount paid for repairs to hi:
barn or other farm buildings, but moi
the dwelling. and for repairs to farm
fences. machinery, etc. The cost Of
materials for immediate use and o.
small tools which are used up In tn,
course Of a year or two. such as bind
Ing twine, pitchforks. spades, etc, Is /