The Dawson news. (Dawson, Ga.) 1889-current, 1918-03-19
INCOME TAX Is NOT
FOR WEALTHY ALONE
$4,000 A YEAR MAN WILL DO
HIS BIT THE SAME AS THE
MAGNATE OF THE STREET.

WASHINGTON, D. C.-John 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 $1,80O,18O. John Ms
income for 1917 was $3,0OO,OOO.
John D. Smithkins- also fctional
will pay $40 Smithkins income
for 1917 was $4,000. Both are mar
ried.
This is an illustration of the oper-
alton of the income tax provisions of
the war revenue act of October 8,
1917. and the act of September 8,
1916, which preceded it and which
remains in force.
The normal rate of tax under the
act of 1917 is 2 per cent. on the net
income and unmarried persons in ex-
cess of $1,000 and on the net in
come of married persons in excess
of $4,000. Under the 1916 act the
normal rate is 2 per cent. on the net
income of unmarried persons in ex-
cess of $4,000 and on the net income
of married persons in excess of $4,-
O00 An extra levy or surtax rang
ing from 1 per cent on incomes be-
tween $4,000 and $4,000 to SO per
cent on incomes in excess of ST.
100000 is imposed by the act of
1917.
The act of 1916, in addition to the
normal tax, imposes a surtax ranging
from per cent on incomes between
$4,000 and $4,000 to 10 per cent.
on incomes in excess of 100000.
John NJ. will pay 2 per cent. on
his income in excess of $4,000,
per cent. on his income in excess of
$4,000, so per cent. on his income
in excess of $1,000,000 and 10 per
cent. on his income in excess of ST.
100000. Smithkins will pay->2 per
cent. on his income in excess of
$4,000.
Not Rich Mans Tax.
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.
The estimated revenue to be col
lected under the war revenue act of
1917 is $2,5O0,O0O,0OO, of which
$3.50, 100000 is in individual icome
taxes. Every unmarried person who
made $40 week or more and every
married person who made $40 a week
or more is assessed. Returns are re-
CURED of unmarried persons whose
net income for the calendar year
1917 was 1000 or more and of mar
ried persons whose net income was
$4,000 or more.
The commissioner of internal rev.
enue, with the approval of the secre-
tary of the treasury, has extended
the time for filing returns from Mar.
/ to April 1, 1918. This affords the
taxpayer ample opportunity, but to
delay until April renders the de-
llnquent subject to a fine of not less
than $40 nor more than 81 900, and
an additional assessment Of so pei
cent of the amount of tax due.
Payment must be made on or be-
fore June Is, 1918. The penalty fol-
falling to pay tax when due is an
assessment of 5 per cent. of the
amount unpaid, plus interest at the
rate of l per cent a month during
which it remains unpaid. For making
false or fraudulent return the pen
atty IS fine not exceeding $4,000
or not exceeding one years imprison-
mIrent, or both in the discretion OF
the court, and in addition 100 pei
cent of the tax evaded.
Cannot Evade Tax.
The man who thinks to evade the
income tax is storing up for himself
trial and tribulation. The government
mas numerous ways of checking uI
deIlnquents. One is through "infor.
nation at source" provision of the
act of 1917, which requires every
employer to file with the commission
er OF internal revenue a report OF
payments of $500 or more paid to
each employee during the calendar
year 1917. 1t is estimated that the
number of such reports filed will be
20,000,00O.
The bureau of internal revenue
through various agencies, has endeav.
ored to inform taxpayers every
where of the requirements of the in.
come tax laws. Ignorance of the Law
cannot be accepted as an excuse.