The Cordova daily times., 1919-01-21
INCOME TAX FOR 1918 WILL
 NET BIG SUM

SAN FRANCISCO, Jan. 2l tby AsSo. Ciated Pressp In working out for the first time several concrete examples as to the extent to which corporations and individuals will be called upon to help meet the war expenditures by payment of taxes on income and prof its of the calendar year 1918 under the terms of the new revenue law about to be enacted. Collector of Internal Revenue Justus $ Wardell today said that he had heretofore fully realized the unprecedented scope of the taxes about to be collected to bring in the $GOOU O00 900 contemplated by the framcrs of the bill.
 Total internal revenue collections in 1917. for the entire country, reported at the end of the fiscal year. June 30, 1918. amounted to $3,694 ,7O3,OOO of which $2.S39. .OS3O00 came from income and excess profits and $S55,Gl9,O0O from multitude of miscellaneous sources.
 Under the terms of the senate bill the married man or head of a family has 5000 exemption. single per son has an exemption Of $lO00 only. For each dependent chilid d married man gets an exemption of $2O0,
 The normal tax is 6 per cent on tn" first $i.UOU of income above eAcmp- tion For d married man with no chil- dren the rate is therefore G per cent on any amount in excess of 5000, and not in excess of $6.OOO, IL k l2 per cent in excess of $6,0O0.
 In the case of single person whose exemption is $1,o0o, the tax on an in, come of 5000 would be $50, as against $2O under the law of 1917; on an in come of $3.00O he pays $l20, as against $40 in 1917, and on an income of 5000 he pays $2io as against $SO in 1917
 Income up to 5000 is exempt from surtaX. On income in excess of $5,oO0 and not in excess of $G,0O0, the rate is pcr cent The rate then advances 1 per cent for each additional $2,O0O up to $1ou.uOu. so that it runs per cent from $G.ooo to $H.OOV, 3 per cent from $S.00o to $lO,OOO and so on. Above &lUa.e0O the advances are irregular but climb rapidly.
 Tahulations made with reference to net income at Wardelrs office showed that q person with a net income of $1 5U0.0 .00O will have to give up $1,0SS.- O3O to the government, while d tax payor with net income amounting to Sl ooo oo0 will be called upon to re- luqui.h S7o&,o3o The man with an income of &5Oo.ooO will be- liable to a tax or .@g}.oao; net incomes or S&oo,- ooo aud s-oooOo respectively will pay Sl72o"o and >Iolo%1
 "Hmur hips are mot ro to taxed" Collector Wardc'l adj but mdiyiI uaI partners pay tax on aU partner ship mo".. .raartu9 ro their shares. a- n,N .- on tur,me- from other sources
 "A "... e.o.Hy.Hion . mad" of p.rau.' .r.t.. c,G.rr.ren- Tn. s',,n .'... q. n.& u. taxed on 'h.I .'.o u.. of n. r.. .r". ;. t.. .o. uam,r as part ..r. .. r... Severe penalties are
 ... .'".ho.f"rs permit ur. .. ..ramu.tc beyond laa,i. ..#. w.u.. instead of being
 .... H.. ..r#.l income ta> oa cor ..... r.. . proposed fiat rate .. r ..Hf on the n.' income rr. u.... .u. Hr3u.'ine tAe war r>- ... ..... ..>ro n. computed on b1si- . sa .n in,..tnI caot,oI rlut d ....". up'oa alIoHoL and the ".. N.. per o.n., f per cent or C uog c.lu
 'ra. the war naca-* profits tax .unnntotj.o there is proposed for "0ra &hioh will rrquire extended cx. uiunrGaa 10 make it clear to the ay- "raga reader
 "A few comparisons oC the 1917 tax liability with the proposed applica- tiun oI g l.2 corporations of like cap ital and income will, however, give something of an idea of the scope of the. new law.
 Last year the concern with a cap ital of $l,25O.O .OOO and net profit of $375. .0UO, with a pre.war capital aver aging $l 900 900 and with a net profit average of $2,OOO,O00, paid including the 2 and per cent tax) total tax of $9TSl75O. Under the proposed law the tax will be S1S3,44S, about double the tax of last year and about