Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1918-01-17
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FEW UNDERSTAND
INCOME TAX
Many Farmers WILDE Surprised
To Learn That They Must
Pay-Children Are A
Blessing

proposition to the farmer, as 1t wal
only in the last democratic Congress
that the new law was passed, lower
ing the exemption to $1,000 for single
men and $1,000 for married men.
This brings a very considerable class
Of farmers within the provisions Of
the law.
Most of the farmers were sur
prised to learn that, in figuring
their income the government re-
,luires them to swear to q correct
statement, or approximately cor
rect, at least, of every kind Of4arm
products, poultry or meat, used or
sold by the farmer during the past
year. In the case Of animals, this
means horses, cattle ETC., foaled
since March /, 1913, which would be
5-year old stock March 1st next,
Thus, every farmer who has had q
public sale, or private sale, Of live
stock during the past year, must re-
port the gross sales and count it
in his statements of income. Most
farmers, being Of an intelligent
class, can readily understand that
these sales correspond to a mer-
chants income, and should be tax
able. But what puzzles them is to
find that they must account for the
hogs they have butchered and eaten,
for the eggs they have eaten or sold,
and for every item consumed on the
farm.
Mr.. Cravey has carefully explained
to all his rural visitors that, inasmuch
as city folks are not allowed to de-
duct their grocery OF household ex-
penses from their grosa incomes,
neither could the farmers be- permit
ted to deduct meat, butter, eggs, milk,
garden truck, ETC., because this con-
stitutes practically the whole Of q
farmers living. The farmers are not
going to escape this income tax-nOt
if the government can help it, and the
same rules apply to them that apply
to their town brethren, who consume
everything which they do NOT pro-
duce.
Lucky is the man with q lot Of kids,
when the income tax man comes
around. One man said he had seven
children. As this gives him an ex-
emption of 5000 for each child, that
makes $140O exemption above the
$4,000 for a married man. In other
words, such a citizen may have a
net income Of $34O0, and pay no tax.
Be it remembered that if q salaried
person does not draw q salary Of
$4,000, if married or $1,000 If single,
he need not make a report. But if
more than that, he must make out
report.
The lawyer, with a net income Of
$4,000 and a $1,000 exemption pays
2 per cent on $1,000 or $4,000. But
if a lawyer draws $4,000 fees q
year on all above $4,000 he must pay
double the tax or 4 per cent on $4,000
which would be $4,000, in addition
to the $40, or $3.50 Total tax.
A dentist yesterday filed a report
but as the office expenses Of his bus
mess lessened the net income to a
sum under $4,000 net, Mr.. Cravey ex-
planned that no report was necessary.
The same rule applies to every kind
of business. It isn't your gross in
come that counts, but the NET.
"But, in deducting sums from the
gross, be careful" warns Mr.. Cravey.
For example, q merchant may de-
duct salaries, goods, rent, heat, light,
insurance, repairs and other actual
items of expense In running the bus
iness, but he cannot deduct anything
for his own time. He may deduct
state and county taxes, but he can
not deduct improvement taxes, which
mean paving tax, sewer tax, side
walk tax, etc. He may deduct money
spent for donations for educational
and religious work and for war re-
lief, but not for anything else. Also
the sum total of deductions allowed
must not exceed Is per cent Of
the persons income.
Thus, If you gave money to the
Red Cross, to the High school, to
some church building fund, 10 the Y.
N. C. A.-eount this out, but Il you
paid to the gravel read fund, or to
the Chamber Of COmmeree, or 10 the
August Reunion, or the spring Fss-
trivial, you cannot deduct these sums