Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1919-03-06
HOW THE INCOME TAX
IS MADE TO APPLY TO
RICH AND POOR ALIKE
Levy TOnehes POckesb0Ok 81 Every
Many ef Moderate Aeans In The
UniGea States

II
bonds and John ID. smilhkins, both
tictional Characters but equally well
known In the United States, again Il
pay their taxes. John M. will for
ward To the collector oil Internal reve-
nue. check for S703.0S0. His net in
come for 1918 was 81 900 900. Smith
kins will pass the collector $40. HIs
net income was $4,000. Both are emf
nently respectable marriad men.
This Is an Illustration of the In
come tax provisions of the new reye-
nue. bill. THE income tax is no longer
rich mans tax il truthful but not
q new saying emithkins. however,
after contributing Ills just quota To the
government will have left q consider
ably larger portion Of his income than
Goldbonds
The levy touches the pocketbook Of
every person OF moderate means iii the
United States, bat Il SO graduated that
the GoldbOnds and the Smithkins each
pay according to their income. Last
year there were fled up to June S0,
2.319,929 returns OF income or less
than $4,000. The tax assessed on
these incomes was S22, ,395, ,262 40. The
number or returns lied on incomes of
more than $1,000 was 666 .623. the tax
on which was $592, 3,24I.I2. Speak
ing for themselves. these figures offer
convincing proof Of the equitable dis
tribution on the tax burden,
The estimated revenue 10 be collect
ed under the new revenue bill is
Sc, ,000. 900, 900 Returns are required
on or before March rs, 81 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 De these amounts.
In making out his income tax re-
turn, John NJ. Goldbonds will deduct
frst his personal exemption Of $4,000
allowed b married man On the first
$4,000 of his remaining income Of
$0es, GOO he will pay 4 norMsal tax og
six per cent. or $40. On his Income
In excess of his exemption and first.
$4,000 of income, he Will pay q normal
tax Of twelve per cent, or sl19 ,2S0.
LII addition he Is required to pay q
surtax beginning at one per cent on
the amount or his income between
$4,000 and $4,000 and increasing by
steps of one per cent for each $4,000
Of his net income up 10 and including
forty-eight per cent On net income In
excess Of s9S.0O0 and not over 8 l0o, 900.
From this point the rates are as fol-
lows: Fifty two per cent OF his net In
come In excess Of 100000 and not
ever $3.50, 900; fifty-six per cent on net
income In excess of sI50,0O0 and not
over 5000, 900: sixty per cent on net
income In excess OF 100000 and not.
over $500 900 sixty-three Rer cent on
net income In excess Of $300.000 and
rot over $500 900 and sixty-four per
cent on the amount Of hts net income
between 100000 and $1,000 ,OO0.
John III. pays q normal Tax of Sli9,-
$50 and eurtax Of s683 $40. smith
kins doesn't have to bother about the
lntricacies OF the surtax which applies
only to incomes III excess Of $4,000,
Daducting his exeEa aption Of $4,000, he
pays six per cent On $500
ii ii assured that neither snithkins
nor Goidbonds have dependents. other
than wife. The new revenue bill al
lowe an additional exemption OF $200
TOR each person dependent upon the
faxnayer for chief support. if such
person Ii under eighteen years of age
or incapable OF self support.
At their option Goldbonds and
Smifhkins may pay their tax in full ct
the time of ding their returns, on or
before March 16, or Ia four Install
.nents. On or before March is. on or
hasore June rs. On Or before Septena-
Der l5, and on or before December 70.
The penalty FOR failure 70 make re-
sur,, On time. is fine ng not more than
81 .OOO, and an additional assessment
81 twenty-five per cent Of the amount
due For wilIfully refusing % make
s return the penalty Is q fine Of not
more than SO 600 or iHnprfson onnaent for
not more than one year or both, n
similar penalty II provided Tor max
IND i false or fraudulent return, togeth-
S With an added assessment Of Afty
per cent of the amount due
TDa Commissions Of internaI rev-
anns Daniel b. ROPER, however, q
SWING himself no uneasiness coneefn-
ing fhe payment og the tai.
..ExDerience has proved that the
great majority os the American peo-
MA nav theEr taxes cheerfally and viii
iingIy.a said CoRniasiOner Roper