Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-01-01
Gathering Income Tax and Excess
Profit Will Begin This Morning

I Washington. Dec. 31.--Thc great
task Of gathering income tax and cx-
cess profits returns will begin with the
New Year tomorrow.
! Every unmarried person earning
more than 81 900 during the last year.
and every married person or head of a
family who made more than $1,000,
must file with the internal revenue col
i lector of his district report any
time between tomorrow and March /
He Will be notified before June | Of
tho tax due. and payment will be due
lby June -.
! The government expects to receive
Sl,20l .000,0 900 from income taxes before
July |, including 1865. 900 900 from in
dividuas and $685., 100000 from cor
porations. This is more than one third
| of the s3,ioon00. 900 estimated re-
CeiptS under the war revenue act
passed by Congress at tho last session.
| From excess profits taxes. the gov
eminent expects to realize about ST.
220. 000, 900 before July /.
| The rate of tax for a married man
or the head of a family is ? percent on
the amount Of his net income exceed
! ing $1,000. but less than $4,000. and
percent on the amount of his net in
come above $1,000 but iess than $4,000
An unmarried person not head of a
family will pay 2 percent on the
amount of net income above 81, 900 but
less than $4,000 and 4 percent on the
net income above $4,000 but less than
S., 900
An extra levy. or surtax, in addition
, a .,E
comes above $4,000. so that the amount
of income between $1,000 and $500 is
subject to a total income tax includ-
ing both normal and extra, of :, per
cent; and between $500 and 10000
e percent. The surtaX further in
creases with higher incomes. so that
iamounts Of s1.o00.00O are taxable at So
percent with ono percent additional
for each half million up to two million
dollars. All incomes over the latter
amount arc taxable at 81 percent.
Typical income tax lcvies on heads
Of families arc as follows: Income Of
$500. tax is $40; income of 5000. tax
is SO income OF $500, tax is $50: in
come Of $4,000. tax is $40; income of
$4,000. tax is $50: income of $4,000,
tax is $50
Unmarried persons would pay in this
way: Income of $500. tax is $40: in
come Of $4,000 tax is 500 income of
$500. tax is $50: income Of $4,000.
tax is $40: income of So. 500. tax is $50;
income Of $4,000. tax is $50. income of
$4,000, tax is 500; income of $4,000.
tax is Sl20.
Taxes may be paid in four install
a,,4.
this arrangement is preferred. but the
Treasury will open.a determined cam
paign soon to encourage persons to
pay their tax in fun immediately. and
receive interest on the advance pay .
mcnt
y small army Of accountants, es-
pccially trained for the work in schools
conducted by district collectors for the
past two weeks, Will go into the field
beginning Wednesday to assist ner-
sons in filing their returns, and will
travel or pre- arranged itineraries for
a month or more. In addition, federal
agricultural agents, and representa-
tives Of state and county councils Of
ma tional defense, have enlisted in the
campaign of education. By this ey-
tensivc campaign Of education, Intern
al Revenue Commissioner Roper hopes
to eliminate the chances of failure to /
Fl lc a return through ignorance Of the +;
requirements.
In fact. officials in charge Of the tax
gathering machine expect to eliminate
the usual grudging spirit Of taxpayers !
They have called this a Liberty
Tax. because its proceeds go TO the /;
same war cause as the Liberty Bond !
issues, and every effort viii be made /
TO encourage the. spirit Of willing Civ /
ing among those on whom the tax falls. !
About 100000 persons will pay in !
come taxes, il is estimated and most !
VIII be subject to a direct federal tax !
for the first time, for less than 800 eco |
paid income taxes last year under the |
old law. Tax return forms have been !
made as simple as possible. those for |
incomes Of less than $4,000 being es /
pecialy free from technical features ;
o. inquistorial items
Corporations will pay income take.
also. but on a different basis. Their
net income is subject to a tax of s per- |
cent under the new, war revenue act
ard certain technical deductions are al /
lowed Corporation ! returns are due