The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-12-10
About Your Income Tax
AL F. Williams United States District Attorney Ex-
plains New Features in 1922 Returns That VIII Have
An Effect on MIR. Average Man.

read, and every person who is re
quired to pay the tax last referred to
above is understood to he required .
procure and keep posted a certificate
of registry in accordance with regula-
tions which shall hereafter be pre-
scribed by the commissioner with the
approval of the secretary, and any
person manufacturing such simple
syrups who does not so register and
keep posted his certificate of regis
try and pay the tax stated shall be
subject to a penalty of not more than
$1,000 for each offense.
An additional provision in regard
to corporations, changes under certain
conditions the arbitrary credit of So
600 as follows: any corporation that
shall have a net income of not more
than $4,000 shall be entitled to the
$4,000 credit from normal tax but
of $500 for the calendar year 1921.
such corporation shall be entitled to
no credit from normal tax.
How Large Incomes Are Taxed.
The general provision of the old law
relative to expenses. interest, taxes.
depreciation, losses and business eX-
penses, generally speaking, are modt
fled but little by the new act but the
rates of SUr-taXeS for individuals and
excess profits taxes for corporatio IS
have been in some degree modified
and in some respects radically
changed.
The normal tax of the individual
tax payer is as follows: in the case
of a citizen or resident of the United
States, the tax is 4 per cent upon
the first $4,000 net income in ex-
cess of the credits allowed in~the act
to the tax payer, and above $4,000 the
normal tax is 8 per cent. The sur
tax begins by fixing tax of 1 per
cent of the amount by which the net
income exceeds s5,OD0 but does not
exceed $4,000; 2 per cent on $4,000
to $4,000; per cent on $4,000 to
$40, 600; then increasing al a general
ratio of L per cent on each $4,000 addi-
tional net income. This applies up to
the point where the net income of the
individual reaches 100000, and at
that point the government will take
50 per cent of the net income from
100000 to $4,000 Sc per cent from
$3.50, 900 to 100000; 80 per cent from
100000 to 100000: Ga per cent
from 100000 to $1,000,0O0; and the
individual who has an income of over
$1,OO0.OO0 must pay 65 per cent of
the total amount to the government,
This applies to the year 1921.
As 1 have stated before, all part
nerships shall file returns and the in
dividual partners must file separate
returns. and where they pay the tax
individually as members of the firm
there will be no tax assessed against
the partnership, attic the return must
be filed. The normal tax for cor
porations, contrary to the general
idea prevailing, is not increased for
the calendar year 1921 and still re-
mains 10 per cent of the net amount
in excess of the credits, which are
provided in Section 236 of the new
act. but dHri,lg the calendar year 1929
an increase IN the normal tax up to
II x per cent is provided for.
Time Limit, March Is, May Be Ex-
tended.
Returns should be filed on or be-
fore the 18th day of March, 1922
with H. H. Motter. collector of inter
nal revenue. at Wichita Kansas There
are provisions made for extension of
time, however, in which to file re-
turns such extensions being granted
upon application to the commissioner
under conditions stated in the act.
There are changes that may be
made in the operation of the new bill
which will come in the way of regula-
tions issued by the department at
Washington, and there may be some
new provisions promulgated that will
modify in some degree the strictness
of the application of some of the pro-
visions of the new law, but as the
matter now stands, unless changed By
regulation, one feature of the old law
that has been modified and in which
many persons are interested might be
called to the attention of the public,
and that is that in making up gross
income or net income. all salaries O.,
wages paid to the employees of the
United States or the employees of the
state of Kansas, or any other state or
sub division of the United States, shall
be included as a part of such net or
gross income, altho the regulations
may change the operation of this pro-
vision and eliminate these sums FROM
taxation as was done by regulation of
the department in the operation Of the
old law, now repealed.
All Farmers Receipts Are "Incomc.''
1t is not the object of this article to
call attention to all of the various
changes or alterations. but only those
in which the general public has L
keen interest and which affects the
great mass of tax payers, particularly
out here in Kansas, and it is well thai
the farmers of ka--saS should under
stand that if their gross income ex-
ceeds $4,000 for 1921, from all sources
including the sale of all kinds of farm
products. livestock, grain and every
thing which produces a revenue to the
farm, then that farmer must file his
return even tho he has lost consider
able money during the year. All per-
sons should bear in mind that it :
not a question of profit or loss but IT
is the question of the gross amount
of income that is the test as to
whether or not a return should be
filed.