The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-12-10
BY AL. F. WILLIAMS.
United States Attorney for Kans

| United States Attorney for Kansas.
| In view of the fact that there are
many changes of vital interest to the
! general public in the new income tax
/ law recently passed by congress, it
| might be well to call attention to some
| of the most important changes that
will affect tax payers to the end that
these changes may be the more read
| lily understood by the public.
There is one very important chan6e
that will affect more tax payers than
any other and that is that part of the
new law which requires every person,
that has a total gross income of So
600 or more during the calendar year
1921 to file a return. Heretofore
those individuals that did not show a
profit on their income were not re-
uuired to file returns and for this res-
son thousands of individuals were e-z-
empted from the trouble and bother
of preparing their income tax returns
but this year if the keeper of an ordi-
nary retail store takes in over his
counter in he ordinary course of bust
ness $1,000 or more, as the total re-
tail sales of his esta blishment for the
year 1921 he must file return, and
this is true even tho his business was
operated at a distinct loss and he
made not one penny during the year
/ Thousands of returns will have to be
filed covering the year 1921 that We z
unnecessary during the previous year.
$500 Exemption for Each Dependent
Individuals who are unmarried and
are not the heads of families or are
married and living separate from the
husband or wife are given an exenp-
ton of $1,000, and if married and liV-
+ ing with the husband or wife or are
heads of families, such individuals are
entitled to an exemption of $4,000;
provided, however. if the total net
income of such head of the family or
married person shall be over $4,000
then the exemption is decreased t.
$4,000, with the additional provision
that in no case shall the reduction of
the exemption from $4,000 to $4,000
operate to increase the tax which
would be payable if the exemption
were 81, 500 by more than the amount
of the net income in excess of $4,000.
This last provision is in the nature
of a saving clause, and when the in
dividual who would be entitled to ST.
500 exemption if his income had not
reached $4,000 has an income slightly
over $4,000, thereby reducing his ex-
emption to $4,000 under the law, the
additional tax to be assessed against
such tax payer under those conditions
cannot exceed the amount of his in
come over $4,000.
Every head of a family is entitled
to an exemption of $4,000 for each
dependent which is double the
Every person who has a net in
come of over $4,000 must file a re-
turn whether he has a total gross
income of $1,000 or not.
The above points are radical de-
partures from the provisions of the
old law and it might be well for the
tax payers to bear these in mind.
Cheering News for Travelling Men.
All corporations must file returns
TO J, o,.4 4
amy profits during 1921 or not.
Cheering news comes to the travel
ing salesman, in that the new revenue
act has in its provisions that all OF
the travelling expenses of an individual
engaged in any trade or business, in
ing and travelling expenses, shall be
allowed as a deduction, and this takes
care of the man who by the very ne
ture of his employment is compelled
to be away from home and spend
considerable money for meals, lodging
and travelling expenses, only part
of which were deductab1e under the
old law.
Under the old revenue law pen
sionS of Soldi> were not allowable
as a deduction but under the pres
ent act gross inc me as defined by
the 1921 provision does not include
any money received as pensions oy
any soldier or for any family allo,-
mentS or allowances under the W1r
risk insurance or vocational rehabili-
tation act.
Gross income this year does not in
clude profits made on building and
loan investments up to 100000. a
minister of the gospel is entitled to
the fair rental value of his dwelling
house and appaurtenances furnished
him and can include them as part of
his compensation.
Penalty for Each Violation, 81 ,OOO.
The taxes are changed in a good
many instances and the provisions for
collection of the same are likewise
varied from the old law. One very
particular evidence of the shifting of
the burden of taxes is in the case of
proprietor of a soda fountain or
dealer in soft drinks who manufac-
lures simple syrups for his own use,
and not for the use in the bottlins5
of beverages. Under the new law the
proprietor of, such an establishment
must pay nine cents per gallon upon
such syrup manufactured by him and
used in the preparing of drinks at his
soda fountain or for any other use
by him other than in case the syruD
is used in the manufacture of car
donated beverages stored in bottles or
other closed containers, and in such
| last named instance the tax is reduced
from nine to five cents per gallon.
{ The real pertinent feature of this pro
vision is easily comprehended WHEN
the further provision of the law is