New Britain herald., 1919-03-05
ALL CLASSES HIT
 BY INCOME TAXES
Multi-MilIionaire and Man Of
 Moderate Means Affected

time has come for John M. Goldbonds and John D. Smithkins-both f1c- tfonal characters but equally we'll known in the United StateS-again to pay their income taxes. John NJ. will forward to the collector of internal revenue check for $103,O30. His net income for 1918 was s1,0O0,OOO. Smithkins will pass the collector $50 His net income was $2,500 Both are eminently respectable married men.
 This is an illustration of the in come tax provisions of the new rev enue bill. "The income tax is no longer a rich mans tax" is a truth full but not a new saying. SmithkinS, however, after contributing his just quota to the government will have left a considerably larger portion of his income than GoldbOnds.
 The Levy touches the pocket book of every person of moderate means in the United States. but is so graduated that the GoIdbOnds and the Smith kins each pay according to their in come. Last year there were filed up 10 June 30, 2.2t9.929 returns of in come of Jess than s3,0O0. The tax assessed on thcsc Incomes was $22,- 395, ,262.40. The numb ber of returns lilGd of incomes of more than $3,00O was 665.623. the tax or which was $592, 2,613 3,241.12. Speaking for them SclNes these figures offer convincing proof of the equitable distribution of the tax burden.
 The estimated revenue 10 be col lccted under the new revenue bill is S6,000,000, 1000. Returns are required on or before March 5 Qf every single person whose net income was $1,00O or more and of every married per son whose net income was s2,000 or more. The tax is assessed on net in come in excess of these amounts. In making out his income tax re- turn, John M. Goldsbonds will de- duct first his personal exemption of S2,000 allowed a married man. On the first S4,000 of his remaining in come of s998,OOO he will pay 8 nor nal tax of per cent, or $40. On his income in excess of his exemption and first s4,00O of income, he will pay a normal tax of 12 per cent, or S119,2S0.
 In addition he is required 10 pay a surtax beginning at 1 per cent on the amount of his income between 5000 and $6,000 and increasing by steps of 1 per cent for each s2.0OO of his nCt income up to and including 4S per cent on net income in excess of $98,000 and not over $1o0,000. From this point the rates are as fol- lows: B per cent on his net income in excess of $100,000 and not over $150,O00; 56 per cent on net income in excess of $15o, 900 and not over $200,000; 50 per cent on net income in excess of $200,O00 and not over $500, 900; 63 per cent on net income
 
 $500,000 and 64 per cent on the amount of his net income between $500, 900 and >$1.00O,0oa
 John M pays normal tax Of s119,- 52o and surtax of $5s3,610. Smith lins doesn't have to bother about the intricac1es of the surtax which ap- plies only to incom es in excess of $5,- 000. DeduCting his exemption Of S2.00o, he pays per cent on $500
 It is assumed that neither Smith l1ins nor Goldbonds have dependents, other than a wife. The new revenue bill allows an additional exemption of $200 for each person dependent upon the taxpayer for chief support, if such person is under eighteen years of age or incapable of self support
 At their option Goldbonds and Smithkins may pay their tax in full at the trno of filing their returns, on or before March 15, or in four in- stallments on or before March Is, on or before June 15, on or before Sep tenn ber 5 and on or before December 16, The penalty for failure to make a return on time is a fine of not more than $1,000, and an additional assessment of 26 per cent of the amount due. For "wilfully refusing' to make a return the penalty is 9 fine of not more than $1O,000 or inn prlsonment for not more than one year, or both, A. similar penalty is provided for making a false or fraud ulent return, together with an added assessment of 50 per cent of the amount due.
 The Commissioner of Internal Rev 1 enue, Daniel c. Roper, however, is l giving himself flo unea sness con corning the failure of Goldbonds or 1 Smithkns to file their return and l pay the tax on time.
 "Fxperience has proved that the 1 great majority of the American l people pay their taxes cheerfully and 1 willingly" said Commissioner Roper. ] "Of course we have the delinquent 1 and 10 him, in justice to those who | fully comply with the law. no con- 1 sideration can be given. The bureau | has at it's command innum erable l sources of information that will dis close tax lia ability. When the tax dodg- CT is dscovered-as he will. be-he will he made TO pay tho full penal ties of the law.
 Forms for filing income tax re- l turns may be obtained at offices of l collectors of internal revenue. Tax payers whose net income for 1918 l was less than 5000 should ask for Form 1O4O-A. Those whose net in-