Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-01-24
INCOME TAX
BILL IS UP .
IN. SENATE
Bill is Patterned After Wis
consin Law-Would
Raise $780, 900.
Royance, Townley's Chief
Advisor, Draws Up the
New Bill.
(Isy Stan Correspondent, ,

Bismarck, N. D., Jan. 24.-An in
come tax BILL designed to raise at
least 100000 additional revenue
yearly. was introduced in the senate
tee op taxes and tax laws. The bill,
which is patterned after the Wiscon-
sin law, was drawn by Prof. w. H.
Roylance, formerly head Of the de-
partment of economics of the Utah
university, but for some months
Townley's chief adviser on tax mat
ters. ~.
The bill provides for a graduated
tax on earned and unearned incomes,
and q flat per cent upon the in
comes of corporations. 1t adopts the
English plan of withholding the tax
at the source.
Incomes are divided intos two
classes: learned" and ''unearned."
Earned" incomes are those actually
earned, such as wages, salary or fees
Tor personal service, profits from any
business personally managed, or rents
derived from any property owned by a
resident taxpayer. ''Unearned' in
comes are those derived from rents
OF land or other property; interest on
on shares of stock in any business
not personally conducted by the tax
payer; from annuities; and from any
source whatever other than the labor,
skill or personally conducted business
of the person receiving the income.
The tax on unearned incomes is
graduated at the rate of one-half per
cent for each thousand dollars. The
tax is one-half Of one per cent on the
first $1,000, and an additional one
half per cent on each $1,000 or frac-
ton thereof up to $4,000, which
would pay a, tax of five per cent.
Incomes G.. in x excess esa Of Of $4,000 and
tax Of per cent. All net incomes
in excess Of $4,000 and not in excess
of $4,000, pay tax of per cent,
and on all net incomes in excess of
100000 10 per cent tax is levied.
On earned incomes q tax of one
fourth Of one per cent is levied on the
first $1,000. and the tax. then, is grad
uated at the rate Of one-fourth per
cent for each additional thousand
dollars. < It. is eraduated thus1y up to
$4,000, which would pay q tax of
per cent. All net earned incomes in
excess Of $4,000 and below $4,000
are taxed 6 per cent. All net earned
low $4,000 are taxed per cent. All
net incomes in excess of $4,000 are
taxed 10 per cent.
An interesting feature of the bill is
that it does not do away with the tax
on personal property. AS in the Wis
COlS1I law, lLI10 income ana personal
property taxes run concurrently, sc
that the income tax can be paid with
personal property tax receipts. If the
personal property tax is greater than
the income tax, the taxpayer will not
be required to pay an income tax.
The bill provides for the following
income exemptions:
1.-The proceeds of life insurance
policies paid to individual beneficiar.
les upon the death Of the insured; the
amount received by the insured as a
return Of any premium or premiums
paid by him under life insurance, en-.
dowment of annuity contracts, either
during the term or at maturity Of the
term mentioned in the contract, OF
: upon the surrender of the contract
the value of any property acquired by
gift, bequest, or descent: (but the in.
come from all the above enumerated
property shall be taxable) interest
upon the obligations Of the United
States or its possessions: securities is.
sued under the provisions of the fed.
eral farm loan act of July II, 1916
and amendments thereto: and the
compensation of all officers and EN-.
ployes Of the United States, excep,
such part thereof as may be paid by
the state"
In. computing the income tax, al
lowance is made for certain deduc'
tions, such as the necessary expenses
actually paid in carrying on any bust
ness or trade, not including personal
living or family expenses; all interes