The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-03-11
last WORD OF ADVICE
ON INCOME TAX. BILL

This story shows the distribution
OF the income tax AZ 1t affects the
multi Millionaire and man OF mod
crate mooney
Washington. n. C. March a.--The
time has come for John M. Gold
/ bonds and John ID. Smithkins-boti,
fictional characters but equally we'll
known in the United States-again to
pay iheiE income taxes; John NJ.
.l-NAS>sk@S,a @~lttsi1s g. D. II ( ~ .S.sse 49,
lector of Internal Revenue cheek
/ for s70S.o30. His net income for
1918 was $1.000,000. Smithkins will
pass the collector $50. His net in
come was $4,000. Both are eminent
! iy respectable married men.
This is an illustration OF the income
tax provisions OF the new revenue
1 blu. The income tax is no longer "A
rich mans tax" Is truthful but not
a new saying Smithkins. however.
after contributing his just quota to
the government will have left con-
! aiderably larger portion of hts i.,-
come than Goldbonds.
The levy touches the pocket-book
OF every person of moderate means
In the United States. but Ia 80 gradu-
ated that the Goldbonds and the
Smithkins each pay according TO their
income. Last year there were filed up
to June 80, 2,3ia.e2e returns of in
come of less than $4,000. The tax
| assessed on these incomes was ST.
S95, 262.40. The number OF returns
filed OF incomes of moro than $4,000
was $66s,s23. the tax on which was
1892. 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 COL
| lected under the new revenue bill is
$4,000, 100000. Returns are required
| on or before March Is of every single
person whose net income was $1,000
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 NJ. Goldbonds will deduct
first his personal exemption of $4,000
allowed a married man. On the FIRST
$4,000 of his remaining income o.
sSSS,0oo he will pay a normal tax OF
per cent, or s24o. On his income
in excess OF his exemption and first
$4,000 OF income, he will pay a nor
NAL tax of IL per cent. or s1l9.2S0.
In addition he Is required to pay d
SUI tdA beE dt per Cent on inc
amount of his income between $4,000
and $4,000 and increasing by steps of
per cent for each $4,000 OF his net
income up to and including 4s per
cent on net income in excess OF saS.-
900 and not over 100000. From this
point the rates are as follows: Fifty
TIVE per cent on his net income in ex-
cess OF $1,000 900 and not over $3.50. 90:
sc per cent on net income in excess
n 81 yl nSrn~
SO per cent on net income in excess OF
100000 and not over s3o0.00o: SO
per cent on net income in excess OF
100000 and not over $500, 900 and S.
per cent on the amount of his net in
como between 100000 and $1,000
600
John NJ. Goldbonds pays normal
tax OF s1la,620 and surtax OF $3.50
$40, Smithkins doesn't have tu
bother about the intricacies OF the
surtax which applies only to incomes
In excess OF IS, 900 Deducting his ex-
emption of 81. 900, he pays per cent
on $500.
1t Is assumed that neither Smith
kins nor Cioldbonds have dependents,
other than a wife. Tho new revenue
bill allows an additional exemption OF
1900 for each person dependent upon
the taxpayer for chief support. II such
person is under eighteen years of
age or incapable of self-support.
At their option Goidbonds and
Sniithkfns may pay their tax in full
at the time of fling their returns, on
or before March Is. or In four install
ments, oH#ur before March Is. on or
before June Is, on or before Septem-
Der . and on or before December Is
The penaltp for failure to make a re-
turn on time is fire of not more
than 81 900, and an additional assess
ment Of 80 per cent OF the amount
due. For ''willfuiiy refusing to make
a return the penalty is a fine OF not
more than 10000 or imprisonment
for not more than one year. or both
similar penalty Is provided for
making n false or fraudulent return
together with an added assessment Of
so per cent OF the amount due.
The Commissioners OF Internal
Revenue, Daniel G.. Roper; however.
is giving himself no uneasiness con-
corning the failure OF Gollbonds or
Smithkins to file their return and pay
the tax on time,
Experience has proved that the
great fajority OF the American peo-
pie pay their taxes cheerfuliy and
willingly" said Commissioner Roper
"Of course we have the delinquent
and to him, in Justice to those who
fully comply with tho law. no con-
sideration can be given. The bureau
has at its command innumerabla
sources of informa ton that will dis
close tax liability. When the tax
dodger il discovered---as ne will be-
he viii be made to pay the full pen
alties OF the law"
Forms for filing income tax re- 1
turns may be obtained at offices
OF collectors Of internal revenue.
Taxpayers whose net income for
1918 was less than $1,000 should
ask for Form 1040-A. Those
whose net income was more than
$4,000 should ask for Form 1910,