The Holbrook news., 1918-01-11
The Peoples Tax Problems

 come Tax law.
 Local banker has recognized the confusion that 9 direct read ing of the Income Tax law would cause people wfio have never been affected by it before. His explanation IS made doubly lucid by illustrating it with ex- amples from actual experience covering often met complica- tions.
 In speaking of the peoples tax problems Mr. Cole says How the people of the United States purpose meeting the in- creasing cost of the war becomes at once a question of great in- terest. In addition to the perio- dical bond issues that must be foated, there will be various forms of taxes, and the tax bur den will grow larger the longer the war continues. People may we'll confront this problem now, and do whatever is required of them to meet it. Although the coming burden may seem noun tain high, there is no reason for becoming depressed about it. On the contrary, it should be a joyful opportunity to contribute to cause that means so much for the redemption of the world.
 Tn the first place there will be heavy income and excess pro- fit taxes to pay. The corpora- tions, as a general thing, will be amply able to meet these expen- ditures, for their profits are ab- normally large. Any inequali- ties that are found in the tax laws relating thereto are likely soon to be adjusted by Congress. It is the man of moderate in- come, the wage earner. and the one whose income has been fixed amount for some years who will feel the tax burden most. It may we'll be said that it is this class who constitute the great majority of the population, and upon whom the Government most depends for it's support, in war as well as in peace.
 The income tax now affects a very much larger class of peo- pie than did the original law passed in September 1916. The law. of course. has constructions that might confuse some. There are exemptions which when un- derstood completely eliminate some from the need of paying any Income Tax.
 "The persons subject to the Income Tax are: Every person not on the head of a family re- ceiving a net annual income of more than $1, GOO; every married man or head of a family receiv- net income of more than 3D. 900; every man and wife living together, whose combined net income, together with that of their minor children, exceeds $2.000; every mercantile, manu- featuring, or business corpora- tion.
 "The Income Tax asks new duties of many. When it asks how much you make. how much you save or what you have done with the rest, it means to have the correct answer to Just those questions. There is no need of letting the subject become a nightmare to you, because it is simple if followed out along the right lines. The average man or woman is apt to be careless in keeping a record of his in- come and outgo. They decelYe themselves in many instances regarding what their income really is, especially so if they are not working for a regular wage. The business man and farmer should not reckon how much business they transact or how many dollars pass through their hands in the course of a year; the point is, reckon how much you get, because there is a big difference between gross income and net income.
 Take for example: A farmer might have the following trans action along with his other husi-