The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1918-01-11
UNMARRIED lei EARNING lore THAN $1,000 A
YEAR AND MARIE MEN EARNING IN
excess OF $4,000 MUST DIVVY UP.
INSTRUCTIONS EXPLICIT

anu Vic HIdHner III WHICH IL Is 10 De
determined as to individuals and cor.
%porations is elucidated in a treatise
prepared by an official of a Montana
bank submitted for publication. 1r
discussing the income tax problem
the bank official said:
"How the people of the United
States purpose meeting the increasing
cost of the war becomes at once g
question of great interest. In addi'
ton to the periodical bond issues that
must be floated, there will be various
forms of taxes and the tax burden
will grow larger the longer the wal
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 be.
coming depressed about it. On the
contrary, it should be a joyful oppor-
tunity to contribute to a cause that
means so much for the redemption of
the world.
"1n the first place there will be
heavy income and excess profit taxes
to pay. The corporations, as a gen.
eral thing, will be amply able to meet
these expenditures, for their profits
are a%bnormally large. Any Unequal
tiles that are found in the tax laws
relating thereto are likely soon to be
adjusted by congress. 1t is the man
Of moderate income, the wage Garner,
and the one whose income has been a
fixed amount for some years who will
feel the tax burden most. It may
well be said that it is this class who
constitute the great majority of the
population and upon whom the gov
eminent most depends for it's support,
in war as well as in peace.
Small Incomes Hit.
"The income tax now affects a very
much larger class of people than did
the original law passed in September,
1916. The law, of course, has con
structions that might confuse some.
There are exemptions which when
understood completely eliminate some
from the need of paying any income
tax.
"The persons subject to the income
tax are: Every person not the head
of a family receiving a net annual
income of more than $1,000; every
married man or head of a family re-
ceiving a net income of more than
$4,000; every man and wife living to-
gether, whose combined net income.
together with that of their minor chill
dren, exceeds $4,000; every mercan-
tile, manufacturing, or business cor
poration.
"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
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 income and outgo. They deceive
themselves in many instances regard
ing what their income really is, es-
pecially 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 be-
tween gross income and net income.
Examples Cited.
Take for example,: A farmer
might have the following ~transac-
ton along with his other business
1917. In the month of May,
we will say, he purchased a breeding
SOW with a litter of five young pigs
for $500. He sold the five pigs in
for 500 Ocash and kept the
The question is, how much
should he figure this item in his re-
turn. The law plainly states that
from the sale of property of
any kind is income; it further states
hat the cost involved in lettering
property or f~attening animals may be
added to the original cost, and the
profit made after deducting such
is to be entered as income.
The law also states that farmers may
leduct as the expense of carrying on
heir business, the cost of stock pur-
for resale but not if pur-
for breeding purposes. The
in the cast we have just stated
must turn in the cost of the SOW as
part from the pigs at the time of the
purchase. The cost of the SOW must
re included in the permanent invest
nent account and not as a deduction
rom gross income. The profit on the
'igs must be included in the gross in