East Oregonian : E.O. (Pendleton, OR) 1888-current, 1920-02-02
MAN WHO PAYS TAX
ON INCOME IS LUCKY
FOR THREE REASONS
First, Because He Has Suffi-
cient Funds; Second, Rates
Are Put Lower, and, Third,
Current Act is Made Liberal.

The man who pays an income tax
this year has several reasons for
which to be thankful. First, that his
income for 1919 was sufficient 10 place
1t within the taxable list; second, that
the normal rates are lower than for
1918; and, third, that the current rev
enue act is more liberal in its provi-
sions than precedisg acts.
Prior to 1915 distinction was
between only two classes of taxpay-
ers A man was either married or
single, and was taxed accordingly. The
act OF September s. 1916. extended the
exemption privileges in one respect.
Recognition was taken Of the fact that
many unmarried persons. in the main
tenance of household, assume the
same responsibilities as married
man. Under the 1916 act the eX-
emptions allowed a married person
were extended to incIude the head OF
family" A single man. if his net
income for 1919 was $1,000 or more
must file a return but if he is the sole
support Of relatives by blood, marriage
or adoption, living in the same house
with him, and If he exercises control
of household affairs. he is grant an
exemption of $4,000.
Allowance Added.
sun another distinction was drawn
by the revenue act of 1917. An addl-
tional allowance OF $500 was made for
each child dependent upon its parent,
provided such child was under is or
mentally or physically defective. The
exemption applied only to the father
or mo1herwho was SUPPORTING ade-
pendent child in his or her household.
The revenue act of 1918 extended
further the exemption privileges. The
additional 5000 allowance now applies
to each person (other than husband
or wife) dependent upon the taxpayer,
il such person is under Is years of
age. or incapable of self-support.
Thus. for example, if man supports
his mother. uncle, or aunt in sanl-
tarium, he is entitled to the $500 addl-
tional exemption, but If he supports
his children at home with his wife IN
a sanitarium he receives no addition
! al exemption for his wife.
Under the 1913 act deductions 1oi
| losses. sustained outside of the taNpaY-
ers' regular business were not allowed
The merchant or professional man
who took an unfortunate flyer in the
stock market was granted no allow
ance for such loss In the making OF MS
income tax return. The act of lsl!
allowed such losses to the extent OF
gains in similar transactions. For eA-
ample, the taxpayer who, such notoe-
ing his regular business. made SlVo III
ma stock transaction and in another
lost $1,000 was required to report the
500 gain and could deduct only thar
amount as a loss. The 1915 act pro-
yldes for the deduction of all losses
If incurred in any transaction enter
cd into for profit, though not connect
ed with trade or business
More deductions Allowed.
Prior to 1917 deductions for con
tributions to corporations organlzct
for religious, charitable. scientlflc ol
educational purposes were not allow
ed Under the currentact such deduc
tions are allowed to an amount not II
| excess of Is per cent of taxpayers ne
income.
The normal rate of tax for 1919 Il
per cent on the first $4,000 or ne
income and per cent on net income
above that amount. AS in 1918, th'
tax may be paid in full or in four IN
stallments. the first of which must ac
| company the filing of the return on o
before March Is. the second on or be
fore June Is. the third on or befor
september ! 5. and the fourth on Q
before December l i. Forms for max
ing returns may now be obtained .
the offices of collectors of interni
revenue. post offices, and banks.
! the taxpayer's net income for 1919 wa
$4,000 or less. he should ask for Fori
: 1O4O-A. If it was more than S9OV'
n he should ask for Form 104O. IN
assistance of trained revenue agent
who will visit every county IN th
United States. is offered taxpayers
/ making out their returns.