Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-03-14
HOW WAR TAX
AFFECTS YOU
RICH OR POOR
Examples Presented Here
Show Just How the Burden
Falls on the Average Amer
lean Citizen

The time has come for John Nj.
Goldbonds and John ID. Smithkins-
both fictional characters but equal
~ Well-knoWn in the United States
again to pay their income taxes. John
NJ. will forward to the collector OF
internal revenue check for sos,
900. His net income for 1918 was
$1,000,000. Smithkinds will pass the
collector $50. His net income was
$4,000. Both are eminently respect
able married men.
This is an illustration of the IN
come tax provisions of the new reVG-
nue. bill. The income tax is no
longer a ricb mans tax is d truth
full but not new, saying; smith
kins, however, after contributing
his just quota to the, government
will have left considerably larger
portion of his income than Gold
bonds.
The levy touches the pockeroooh
of every person of moderate MEANS
in the United States, but is so grad
uated that the Goldbonds and tine
Smithkins each pay according to
f up lG to June So 2,$1g,ySs returns
of income of less than $4,000. Ine
tax assessed on these incomes was
$22,395, 262.40. The number of re
turns filed of incomes of more than
$4,000 was 665,623,, the tax on which
themselves, these figures offer con
vincing proof of the equitable dis
tribution of the tax burden.
The estimated revenue to be col
lected under the new revenue pill Is
$6,000,000,0 Returns are required
gle person whose net income was
$1,000 or more and of every MAR: ID
person whose net income was $4,000
or more. The tax is ASSESSED on ne:
income in excess of these amounts.
How Tax Is Paid
In making out his income tax re-
turn, Goldbonds will deduct first mis-
personal exemption of $4,000 allowed
married man. On the first $4,000
of his remaining income of $998.0O0
cent, or $240. On his income In
excess of his exemption and first
$4,000 of income, he will pay a nor
NAL tax of IL per cent, or $tl9.2S0
In addition he is required to pay
a surtaX beginning at l per cent on
$4,000 and $4,000 and increasing by
steps of l per cent for each $4,000
of his net income up to and in
GLIDING As per cent on net income
in excess of $98,000 and not over
100000. From this point the rates
net income in excess of 100000 and
not over $150,000;; Sc per cent on
net income in eJcess of $4,000 and
not over 100000; so per cent on net
income in excess of 100000 and
not over $500, 900; 63 per cent on the
100000 and 81, 900, 900.
John M. pays a normal tax Of
s119. $40 and a surtax of $5S3,510.
Smithkins doesn't have to bother
about the intricacies of the surtax,
which applies only to incomes in ex-
nf 0S mn nn511otiro hi
ton Of $4,000, he pays per cent on
$500.
It is assumed that neither Smith
kins nor Goldbonds have dependents,
other than a wife. The new revenue
bills allows an additional exemption
of 5000 for each person dependent
upon the taxpayer for chief support
if such person is under eighteen
years of age or incapable of self
support.
Pay in Insta11ments
At their option Goldbonds and
Smithkins may pay their, tax in full
at the time of filing their returns, on
or before March IS, or in four in
stallments, on or before March Is,
on or before June Is, on or before
September i15 and on or before De
cember Is: The penalty for failure
to make a return on time is a fine of
not more than $1,000. and an addi-
tional assessment of % per cent of
the amount DUE For "willfully re-
fusing' to make return the penalty
is a fine of not more than $4,000
or imprisonment for not more than
one year, or both. A similar penalty
is provided for making a false or
fraudulent return, together with an
added assessment of so per cent of
the amount due.
The commissioner of internal reve
nue., Daniel c.. Roper. however, is CIV
ing himself no uneasiness concerning
the failure of Goldbonds or Smithkins
to file their return and pay the tax on
time.
Experience has proved that the
great majority of the American, peo--
pie pay their taxes cheerfully and
willingly" said Commissioner Roper.
"Of course we have the delinquent
and to him, in justice to those who
fully comply with the law. no con-
sideration can be given. The bureau
has at it's command fnnumerable
sources of information that will dis
close tax liability. When the tax
dodger is discoYered-as he will be-
he will be made to pay the full pen
aIties of the law"
Forms for filing income tax re-
turns may be obtained at offices OF
collectors of internal, revenue. Tax
payers whose net income for 1918
was less than $4,000 should ask for
Form 1040-A Those whose net in
come was more than $4,000 should
ask for Form 1910.