Martinsburg W Va evening journal. [volume] (Martinsburg, W. Va.) 1913-1920, 1918-02-04

Note.--IoT sake OF preYlty tnlS nj
been based on consideration of i;
unmarried person. For married pc
pie (see above) the exemptions al
$4,000 under the old law ana S20i
under the new law and there Is FL
thermore allowed an additional Q
emption of $500 for each depende,
child.
ExampIcu
A few examples will prob
abb best show how this chart
should be used.
I(1) Let us consider first a
married man having no chill
dren who gets a salary of
$1,000 per year. As this mans
income is below the $1,000
exemption, he does not pay
any tax.
t2) Suppose married man
having three children, an in
come derived from salary OF
So, 800 per year. AS he is al
lowed an exemption, being
married, of $4,000 and an
additional exemption of $500
for each child or 5000, total
ing in all $500 irf exemption
he does not pay any tax.
(3) Let US now consider
married man having no chill
dren with an income OF $4,000
per year AS can DO seen
from the chart. he pays 2 per
cent on the difference be.
tween $4,000 and $4,000. or 2
| per cent on $1,000, total tax to
be paid by him -. .,........... 500.
| (4)Suppose this same man,
with an income of $4,000 had
three children. He would then
deduct $1,000 from $4,000 and
pay per cent on $500 Or. s.
90 Suppose married man
having no children had an
| income Of $1,000. Now this Is
| 4 little more complicated. In
the first place according to
| the old law, he would have to
pay a normal tax of 2 per
cent on the difference be-
tween $4,000 and $4,000.
namely per cent on $1,000. 20.
According to the new law he
would pay per cent on the
difference between $4,000 and
and $4,000 or 2 per cent on
! So,uUU 1900. ....s........... bO.
| (6) Suppose married man
having no children has an
income OF $500. Under the
old law he would pay per
cent on a difference between
1880 and $4,000 or per
cent on $4,000 ............ TO-
Pnder the new law he would
pay 2 per cent on the differ
rnce between $4,000 and
1880 or 2 per cent on $500
10
Now furthermore, his in
come is in excess of $4,000
Therefore he is subject to an
additional surtax on the diff
ference between $500 and
$1,000, or as can be seen
from the table. he pays
surtax Of ] per cent on$2.500
or ...... ...-...s... ........ 20
His total taxes would there
fore be $40, ITO, rs $205
II ~ Suppose this same man
with an income Of $500 was
n fortunate or unfortunate
enough to have five children
Now. first or he would be en-
titled to an exemption or 5000
FOR each child or 1000 more
more. Therefore under the old
law he would pay tax of 2
per cent on difference be-
tween $500 and $1,000 or 2
| iper cent on $500 so
Under the new law, he would
pay 2 per cent on the differ
ence between $4,000 and
500 or 2 per cent on $4,000. 30
surtax (same as example No.
81 per cent on $500 80. $25
His total tax payable there
fore is $50 & rs or. $165
60 Suppose married man
having no children had an
Income OF $4,000. he would
pay first under the old law
per cent on a difference be.
tween $4,000 and $1,000 or
2 per cent on $1,000 .... 22C
Under the new law he would
pay 2 per cent on the differ
ence between $4,000 and
$4,000 or 2 per cent on $40,
coo .. . 26t
49,. $500.