Evening capital news. (Boise, Idaho) 1901-1927, 1919-03-05
sl,D0Q,000 Income
TDPAY s703,0s0;
s3OON s2500MAN
New So, 900, 900 Tax Levy
Touches Pocket Book Of
Every Person Of Moderate
Means in the Nation.

Washington. March 5.-The time has
come for John M. Goldbonds and John
ID, Smithkins-both fictional characters
but equally well known in the United
States-again to pay their income tax
es. John M. will forward to the col
lector Of internal revenue a check for
$70S,030 His net income for 1918 was
$1,000, 900 Smithkins will pass the col
lector $50, His net income was $500.
Both are eminently respectable married
men.
The levy touches the pocket-book Of
every person Of moderate means in the
United States, but is so graduated that
the Goldbonds and the Smithkins each
pay according to their income. 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 in
comes was s22.S95, 262.40. The number
of returns filed of incomes Of more than
$4,000 was 665,623, the tax on which
was $592,613,241.12. Speaking for them
selves, these figures offer convincing
proof Of the equitable distribution of
the tax burden.
The estimated revenue to be collect
ed under the new revenue bill is ST.
000,000.000. Returns are required on or
before March Is of every single person
whose net income was $1,000 or more
and Of every married person whose net
income was $4,000 or more. The tax is
assessed on net income in excess of
these amounts.
EXEMPTION ALLOWED
In making out his income tax return,
John NJ. Go<dbonds will deduct first
his personal exemption of $4,000 al
lowed a married man. On the first
$4,000 of his remaining income of $685.
600 he will pay a normal tax of per
cent. or $240. On his income in excess
of his exemption and first $4,000 Of in
come. he will pay a normal tax of IL
per cent. or s119,2S0.
In addition he is required to pay q.
surtax beginning at / per cent on the
amount of his income between $4,000
and $4,000 and increasing by steps of /
per cent for each $4,000 Of his net in
come up to and including As per cent
on net income in excess of SOS, 900 and
not over 100000. From this point the
rates increase.
John M. pays normal tax of s119,-
$40 and a surtax of $5S3510. Smithkins
doesn't have to bother about the in
tricacfes of the surtax which applies
only TO incomes in excess Of $4,000. De-
Quoting his exemption of $4,000, he pays
s per cent on $500.
1t is assumed that neither Smithkins
nor Goldbonds have dependents, other
than wife. The new revenue bill al
lows an additional exemption of 5000
for each person dependent upon the
taxpayer for chief support, if such per-
son is under eighteen years of age Or
Incapable of self support.
PAYMENTS OR IN FULL
AT their option Goldbonds and Smith
kins may pay their tax in full at the
time of filing their returns, on or be-
fore March Is, or in four installments,
on or before March Is. on or before
June Is, on or before September Is and
on or before December Is. The penalty
FOR failure to make return on time is
fine of not more than $1,000, and an
additional assessment of rs per cent
of the amount due. For "willfully re-
fusing" to make a return the benaIty
is a fine of not more than $40, 900 or
imprisonment for not more than one
year. or both. A similar penalty is
provided for making a false or fraudu-
lent return, together with an added as
sessment Of so per cent of the amount
due.
Forms for filing income tax returns
may be obtained at offices of collectors
of internal revenue. Taxpayers whose
net income for 1918 was less than $4,000
should ask for Form 1O4O-A. Those
whose net income was more than $4,000
should ask for Form 1910.