South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-03-06
TIME To PAY
INCOME TAXES
Levy Touches POCketbOok of
Every Person of MOder-
ate Means in u. S.

WASHINGTON. d. G., March e.
The time mas come for John NJ
Goldbonds and John ID. Smithkins-
both hcuonal characters. but
equally well known i'm the United
States-again 10 pay their income
taxes. John NJ. will forward to the
collector of internal revenue check
for S703.O30. His net income for
1915 was S1.O00.OOO. Smithkins
will pass the collector $50. His net
income was $4,000. Both are emf
nently respectable married men.
This is an illustration of the in
come tax provisions of the new
revenue bill. The income tax is no
longer a rich mans tax" is a ruth
ful but not new saying. smith
kins. however, after contributing his
just quota to the government will
have left considerab bly, larger por-
ton of his income than GOldbOnds.
The levy touches the pocketbOok
of every person of moderate means
in the United States, but is so gradu-
ated that the Goldbonds and the
Smithkins each pay according to
g
filed up TO June so 2,319.929 returns
of income Of less than $4,000. The
/ tax assessed on these incomes was
I $2s.395,262.40 The number of re-
1 turns filed Of incomes of more than
s.. 600 was665,62S. the tax on which
was S593 613.241.12 Speaking for
themselves. these figures offer con-
vincing proof of the equitable dis
tribution of the tax burden.
Estimated Revenue.
/ The estimated revenue to he col
! lected under the new revenue bill
/ is $4,000. O0O. 600 Returns are re-
quired on or before March Ii of
every single person whose net in
come was 81 600 or more and OF
+ every married person whose net in
come was S2.O00 or more. The taN
: is assessed on net income in excess
of these amounts.
I'm making out his income tax re-
turn John NJ. Goldbonds will deduct
first his personal exemption OF
S2.o00 allowed married man. on
the first $4,000 of his remaining in
come of S99S.O00 ne viii pay "a nor
.
his income i'm excess of his eNemp-
ton and first IS 600 of income he
will pay normal tax of l. per cent
or St19.2S0.
I'm addition ne Is required 20 pay
% surtaN beginning at 7 percent on
the amount of his income between
$4,000 and $1,000 and increasing bS
steps of ] percent for each $2.00(
of his ret income up 10 and includ-
ing As percent on net income in eN-
cess of SOS. 200 and not over 500
600. From this point the rates are
as follows: Fifty-two percent on his
net income i'm excess OF 100000
and not over $4,000: 80 percen
on net income i'm excess of $4,000
and not over 100000. so percent
on net income i'm excess of 500. 0el
and nor over $500, GOO: 80 perceu
on net income i'm excess Of 100000
and not over $500. 0U0. and 64 per
cent on the amount Of his net i'm
come between 100000 and $1,000,
600.
John A. pays a normal tax o
lS119.520 and surtaN of $5SG,5lO
! SmithktnS dOesn nave To polHe
about the iutricacies OF the surtaN
which applies only TO incomes in OK
cess OF $4,000. Deducting his eN
emption of S2.00o. he pays 8 percen
on $500.
II is assumed that neither smith
lkins nor Goldhonds have dependents
other than a wife. The new revenu'
bill allows an additional exemption
OF 5000 for each person dependen
upon the taxpayer for chief sup
port. If such person is under IS year
OF age or incapable of self-support-
Have Option i'm Paying.
Al their option Goldbonds an'
Smithkins may pay their tax in ful
at ,he time of fling their returns
I on or before March IS. or in 70