Republican farmer. [volume] (Bridgeport, Conn.) 1810-1920, 1918-03-08
INCOME TAX
EXPLAINED

M. Goldbonds-the name is fictional
but there are quite few John MS. IN
the United States-this year Will pay
an income tax of S1,SO9,1S0. John
Ms income for 1917 was $S'O0O,-
000.
John D. Smithkins lso t1ctlonal-
will pay $40. Smithkin's income Tor
1917 was $4,000. 10th are mar
ried.
This is an illustration of the opera
ton of the income tax provisions OF
the War Revenue Act of OCTOBER g.
1917, and the act of September o.
1916, which preceded 1t and winch
remains in force.
The normal rate of tax under the
act of 1917 is 2 per cent. on the net
income of unmarried persons in eN-
cess of $1,000 and on the net income
of married persons in excess Oh Sz'ooV'
Under the 1916 act the normal rate IS
per cent on the net income OF IN
married persons in excess OF $5,OoU
and on the net income of married
persons in excess of $4,000. An ex-
ira levy or surtax ranging from 1 per
cent. on incomes between $4,000 ana
$500 to so per cent. on incomes IN
excess of 100000 is imposed by
the act of 1917. The act of 1915, in
addition to the normal tax, imposes
a surtax ranging from l per cent. on
incomes between $4,000 and $4,000
to 10 per cent. on incomes in excess
! of $2,0O0,000. John M. will pay
2 per cent on his income in excess
| of $4,000, 2 per cent. on his income
in excess of $4,000, per cent. on his
| income in excess of 100000 and 10
per cent. on his income in excess of
| s2,OOO,00O. Smithkins will pay =
per cent. on his income in excess OF
| $4,000.
The income tax, as thus shown, is
no longer a rich mans tax but a levy
so graduated that every person is
assessed according to his income.
Last year 50O,000 persons paid an in
| come tax.
This year the number will be more
than 100000.
| The estimated revenue to be collect
| ed under the War Revenue Act OF
1917 is $4,000, 900, 900, of which
| $3.50, 00O, 900 is in individual income
taxes. Every unmarried person who
made $40 a week or more and every
married person who made 81 Ga week
| or more is assessed. Returns are re-
| quired of unmarried persons whose
| net income for the calender year 1911
was $1,000 or more and of married
persons whose net income was $4,000
or more.
| The Commissioner of Internal Rev
enue, with the approval of the Sec
retatry of the Treasury, has extended
the time for filing returns from March
1 to April 1, 1918. This affords the
taxpayers ample opportunity, but tt
delay until April renders the delin'
uuent subject to a fine of not les
than $40 nor more than 1000 and ar
additional assessment of SO per cent
of the amount of tax due.
Blank forms may be obtained from
collectors of internal revenue or from
revenue officers who are visiting ev.
cry county in the United States to as
sist officers in making out their re
| turns. The services of these expert!
are offered without cost. The loca
ton of their offices may be obtained
on inquiry from collectors, banks d
postmasters. The return must bt
filed with the collector of interna
revenue of the district in which thu
taxpayer lives or has his place of bus
mess
Payment must be made on or be
fore June Is, 1918. The penalty fo1
failing to pay tax when due is az
assessment of 5 per cent. of tn
amount unpaid, plus interest at thu
rate of 1 per cent. a month during
which it remains unpaid. For making
a false or fraudulent return the pen
atty is a fine not exceeding $4,000 o.
not exceeding one years imprison
ment, or both in the discretion of th'
court and, in addition, 100 per cent
of the tax evaded.
The man who thinks to evade tn
income tax is storing up for himsel
trial and tribulation. The govern
ment has numerous ways of checking
up delinquents. One is through tn
information at source" provision o
J the act of 1917, which requires ever,
, employer to file with the Commission
er of Internal Revenue a report o
, payments of $500 or more paid t
} each emp1oye during the calende
year 1917. 1t is estimated that tn
number of such reports filed will b
100000.
: The Bureau of Internal Revenue
: through various agencies, has endeav
ored to inform taxpayers everywher
of the requirements of the income ia
laws. Ignorance of the law canno
be accepted as an excuse. To tn
tax dodger'' who deliberately seek
to evade his just share of the wa
burden no consideration will be Civ
en-. Fortunately for the self-respec
of the American Nation, the Burea
= is anticipating few such cases. TIL
= Bureau has ample and conclusiv
- proof that these taxes for the supper
:, of the war will be paid cheerfully an
willingly by the great majority c
the people. To do less is to comics
n lack of that spirit of patriotism
which has made this an enduring re
a public.
+ Dollars mean victory. Whether 20
d are a Goldbonds or a Smithkins, re
+ member that in paying your incom
d tax you are helping to crush foreve
n the fear of German dominion and t
= confer upon the world the boon of
lasting peace.