The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1919-03-07
Income Tax Makes Raid
On Nea7yAH, Each One
According to Size of Wdd

The time has come for John NJ.
Goldbonds and John d. Smithkins-
both hctional characters. but equally
we'll known in the United States
again to pay their income taxes. john
NJ will forward to the collector II
internal revenue a check for S703.O2O.
His net income for 1918 was $1,OOh.-
900. Smithkins will pass the collsc-
tor $50. His net income was $4,000.
Both are eminently respectable mar
ried men.
This is an Illustration of the income
tax provisions of the new revenue
bill 1.-The income tax is no longer i
rich mans tax" is a truthful but not
new saying. Smithkins, however,
after contributing his just quota to
the Government, will have left a cor
siderably larger portion of his incorIe
than GOldbonds.
The levy touches the pocketboOk Of
every person OF moderate means n
the United States, but is so graduate
that the Goldbonds and the Smithkins
each pay according to their incOTn".
Last year there were filed up to June
30 2.319.929 returns of income of less
than $4,000. The tax assessed on
these incomes was $22,395,262.4O. Tie
number of returns filed OF incomes az
more than $4,000 was $685. 23, the tass
on which was S592.6l3.241.12. SpeaS-
ing for themselves, these figures OFFER
convincing proof of the equitable dis
tribution of the tax burden.
Returns by March Is.
The estimated revenue to be col
lcctpd under the new revenue bill is
SIS, 600. OO0. 900. Returns are required
on or before March Is of every single
person whose met income was 81. 400
or more and of every married person
whose net income was $4,000, or mo e.
The tax is assessed on net income in
excess of these amounts.
In making out his income tax re-
turn. John NJ. GOldbOnds will deduct
first his personal exemption of $4,000
a married man. On the first
1000 of his remaining income Of
$90S.0OO he will pay a normal tax of
6 per cent. or $24O. On his income
in excess Of his exemption and first
81 900 Of income, he will pay a nor
NAL tax Of u per cent. or S1l9,2SO.
In addition he is required to pay a
surtax beginning at l per cent on
the amount of his income between
81, 900 and $4,000 and increasing by
steps OF l per cent for each $4,000 of
his net income up to and including
IS per cent on net income in excess
nf sos, 600 and not over 100000. From
this point the rates are as follows:
per cent on his net income
in excess of 100000 and not over
S15O,OOO Sc per cent on net income
i'm excess of $15OOOO and not over
5000. 900: 60 per cent on net income in
excess of 5000. 900 and not over $780,
BOO: 63 per cent on net income in
excess of $500. 900 and not over $780,
300 and 81 per cent on the amount
Of his net income between 100000
and 81 100000.
Simple for SmIthkIns.
John NJ. pays a normal tax of $119.-
500, and n surtax of $JS3.51O. Smith
xins doesn't have to bother about the
of the surtaX, which ap-
plies only to incomes in excess of
$4,000. Deducting his exemption of
s., 900, he pays 6 per cent on $500.
1t is assumed that neither Smith
lins nor Goldbonds have dependents.
other than a wife. The new revenue
bill allows an additional exemption
Of 5000 for each person dependent
upon the taxpayer for chief support.