The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1919-03-10

the United States-again to pay their
income taxes. John M. will forward
to the collector of internal revenue
a check for $7O3,03O. His net income
for 1918 was $1,OO0,OOO. Smithkins
will pass the collector $S0 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 rev.
enue bill. "The income tax is no
longer a rich mans tax" is a truth
full but not new saying. Smithkins,
however, after contributing his just
Quota to the government will have
left a considerably larger portion Of
Lis income than Goldbonds.
The levy touches the pocket-book
of every person of moderate means
in The United Staets, but is so grad
uated that the Goldbonds and the
Smithkins each pay according to
their income. Last year there were
filed up to June 80, 2,319,929 returns
of income of less than $4,000. The
tax assessed on these incomes was
1922, ,395, ,262.40. The number OF re-
turns filed of incomes of more than
$4,000 was 665,623, the tax on which
was $592, 2,619,241.12. Speaking for
themselves, these figures offer con-
vincing proof of the equitable distri-
button Of the tax burden.
The estimated revenue to be col
lected under the new revenue bill is
00,000,000. 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.
In making out his income tax re-
turn, John M. Goldbonds will deudct
first his personal exemption of $4,000
allowed a married man. On the first
$1,000 of his remaining exemption of
S998,000 he will pay normal tax OF
G per 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 II per cent or $119,2SO.
IN addition he is required to pay
surtax beginning at l per cent on
tho amount of his income between
$1,000 and $4,000 and increasing by
steps Of | per cent for each $4,000 of
his net income up to and including
IS per cent on net income in excess
of t9S 900 and not over 100000. From
this point the rates are as follows:
52 per cent on his net income in ex-
cess of $4,000 and not over $4,000;
SO per cent on net income in excess
of $150.000 and not over $200,00O; 60
per cent on net income in excess of
100000 and not over 100000; IS
per cent on net income in excess of
$500, 900 and not over 100000 and Ga
per cent on the amount OF his net in
come between 100000 and $1,000,G00.
John M. pays normal tax of $119,-
$50 and a surtax of $563,510. Smith
kins doesn't have to bother about the
intricacies of the surtax which ap-
plies only to incomes in excess Of
$5, 900 Deducting his exemption of
$4,000, he pays per cent on $500.
1t is assumed that neither Smith
kins nor Goldbonds have dependents,
other than a wife. The new revenue
bill allows an additional exemption
of 5000 for each person dependent up
on the taxpayer for chief support, if
such person is under eighteen years
of age or incapable of self-support.
At their option Goldbonds and
DullIuhluo may pay IlCtl toA III ANA'
at the time of filing their returns, on
or before March 10, or in four install
ments, on or before March 10, on or
before June Is, on or before Septem-
ber 10 and on or before December 10.
The penalty for failure to make re-
turn on time is a fine of not more
than $1,000, and an additional assess
ment of 25 per cent of the amount
due. For "wilfully refusing to make
a return the penalty is a fine of not
more than $4,000 or imprisonment
for not more than one year, or both.
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
giving himself no uneasiness concern
ing 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