Evening journal., 1919-02-25
URGE new Income
TAX LAW At Dover
Continued from page one

Continued from page one.)
officers who may have been elected or
appointed since the passage OF the in
come tax act would be exempt from
income tax on their salaries. Since
1 such officers were elected or appointed
after the approval Of the income tai
Fact, II is deemed advisable 10 amend
the law so as not to give them exemE
ton.
Second. Section 2i7 is further amend
ed by the repeal Of the provision ex-
empting rentals OF real estate and gains
or profits derived from agricultural
operations from the income tax law.
/ The effect Of this amendment Is TO re-
quirt rentals OF real estate and gains
or profits derived from agricultural
operations to be included in the rezIrn
as income.
Third. This section Is likewise
, amended by increasing the personal ex-
emption TO conform exactly to the pro-
visions Of the Federal income tax law.
In case OF a single person the eXemp-
ton Is $1,000 plus $500 for each child
under the age Of IS years or other per-
son dependent upon the taxable, be-
cause Of mental or physical innrmhY.
In case Of a married person the per-
sonal exemption OF the husband and
wife together is $1,000 plus $500 for each
dependent person as above set forth.
In this case the personal exemption OF
$1,000 TO husband and wife can be
claimed but once, but may be divided
between them in any manner they may
see at.
The important changes in this Sec
ton are, that the present exemption
Of rentals or real estate and profits
from agricultural operations are re-
pealed and the exemptions in the casa
Of a married man are raised. A mar
red man with five children would have
an exemption OF $1,000 and there are
not many farmers or owners Of real
estate that would be called upon to
pay any tax after such an exemption
Is allowed, and II such persons should
have a net income exceeding $1,000. 1t Is !
believed that many Of them would
prefer to pay the tax that would be
assessed, rather than be placed in a
position Of any special exemption that
does not apply TO other occupations
or incomes.
Section 2Is OF the Act IS amended IN
the third provision thereof by deny
ing to the taxable the right to deduct /
from his gross income an amount paid /
TO the United States Government as in
come taxes within the year for which
the report was made.
The reason given for this amend
ment Is that those persons OF large in
comes under the present Federal taxes
are Obliged 10 pay the Government
very high proportion Of their income
amounting In some cases to three
fourths Of their entire net income.
After such taxes are deducted Il leaves
only about a fourth OF such incomes /
subject 10 a State tax. These, II al |
lowed TO continue, would result in |
great lessening Of the States income |
from our State income tax. The great |
est burden arising from this amend |
ment will be laid upon the shoulders
OF persons Of large incomes.
Section 253 Is amended by the al j
lowance Of two special collectors OF
the State Revenue instead OF one. a.
now permitted by law, and gives them
each a salary OF si4O0 per pear.
10 Is claimed that there are a large
number Of persons in this State that
are not reporting to the State Treas
urer. The present machinery Of the
State Treasury's office does not permit
the investigations 10 be made that
should be made Of such cases. The
revenue from the law Is such as to per-
nit reasonable expenditure to be made
IN seeing that two special collectors
should be furnished the State Treas
lrers Department, and so secure Ell
,ient men. It is believed that the salary
must be increased TO Si400 per year.
Section s55 Of the Act is amended by
making K . misdemtanor for refusal
1r neglect 10 pay the income tax as
We'll as for refusal or neglect 10 make
he return as now provided by law.
At the present time refusal or neglect
70 fle a return is made a misdemeanor,
)ut it is not a m sdemeanor TO refuse
)r neglect 20 pay the tax.
The call for economy In every wall
Of life is answered by the Want Ads