The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1920-01-10
MANY MINERS WILL PAY INCOME
TAX THIS YEAR
PAYMENT DUE BY MARCH is
Companies and Other Employers
Must Report Names of An
Who Receive Over $1,000

Crystal Falls people are just now
interested in the fling OF income re.
turns. This work used to be confined
to the rich but such is no longer the
case for many of our miners and 9th
er laborers are paying an income TAX
and must make returns to the gov
ernment OF their receipts.
Don't rest with the idea that Unclc
Sam will not find out how much you
are drawing in salary and other
emoluments. The mining companies
and other employers OF labor are re-
quired to return the names of all per-
sons in their employ who receive over
$1,000. By this means no one can
escape and many who otherwise woald
hide their earnings are compelled to
make showing.
or course, the most OF the income
tax paid by laborers will be by young
men whose exemptions are but ST.
600. Any young man who has a good
job these days is making over that
sum and is therefore liable for income
tax.
Under the income tax law, returns
must be returned between January
! and March Is but persons who are
familiar wi the operation OF the
law through payments during the past
two years are forwarding statements
early
In making out his income tax re-
turns. the taxpayer is required to
show both gross and net income.
Gross income includes practically ev-
cry dollar the taxpayer received dur
ing the year 1919 In arriving at net
income, upon which the tax is assess
ed. he Is allowed certain deductions,
which will be explained later. plus
the amount Of his exemption. Incomes
below $4,000 are exempt from surtax.
The single man with no dependents
and an income for 1919 OF $4,000 will
pay tax OF $40 instead of $50 as for
1918, and married man with an In
come OF $2,500. and no dependents
except his wife will pay $50 instead OF
$40.
Surtax Rates.
The surtax rate is per cent on the
net income in excess OF $4,000 and not
over $4,000, and increases by steps OF
per cent for each $4,000 OF net In
come up to and including As per cent
on net income in excess OF $4,000 and
not over 100000. From this point
the rates run as follows :Fifty-two per
cent on net income over 100000 and
not over s15o,o0o. 56 per cent on net
income over $4,000 and not over
5000 900. so per cent on net incope |
over 100000 and not over 100000
ss per cent on net income over $500 |
600 and not over 100000. Ga per cent
on net income over s5o0,ooo and not
over 81 1000. 900. and s5 per cent on
net income over s1,00oooo.
How To Compute Taxes.
The following illustration Will show
the average taxpayer whose net in
come was more than $4,000 how to |
compute his tax.
A single man had net income Tor
1919 of<ss,o 900. First he duducts hii
personal exemption OF $1,000, leaving
a balance Of $4,000 On the first So
600 he pays at the normal rate Of
per cent. $3.50. On the remaining W
900 he pays at the normal rate OF
per cent. $50. In addition he pays
surtax OF $40. per cent on the a.
mount of his net income between s5.-
600 and $1,000. His total tax Is $3.50,
as compared with 1870 for 1918.
Rate For Married Men.
E A married man With two dependents
had a net income for 1919 OF $1,000
From this he deducts his personal ex-
emption OF $4,000. plus 5000 for each
dependent. On the first $4,000 OF the
balance OF s5.loo he pays at the nor
NAL rate OF per cent, $3.50. On the
si.10o he will pay, at the
rate OF per cent ,ssS. On
the amount OF his income between sb.-
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