Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-06-07
THE TEACHERS 0
TAX LAW.

a synopsis OF the proposed IN
ecme tax law which the teachers
of the state hope to put on the
statute book by initiative and ref
erendum next November. A study
of its provisions would indicate
that this page was mistaken when
it stated that the maximum tax
under its provisions would be eight
Der cent. 1t would be six per cent
two per cent normal and four per
cent surtax. The four per cent ap-
plying additional tax to all incomes
over $1,000. The following are the
chief provisions of the proposed
rev income tax boiled down. The
law itself covers forty-five closely
typed pages. 1t would take about
two pages of solid reading type in
The Tribune to print it complete,
and very few of our readers would
ever read it.
Who Will Pay the Tax?-All IN
dividuals. associations, companies
and corporations, both resident and
nonresident Except those specific
ally exempted) having incomes IN
excess of the exemptions, deduc-
tions and credits allowed, derived
from sources within the state.
Exemptions-The following ex-
emptions are allowed:
% Any single person, $1,000.
(z) The head of a family or a
married person living with husband
or wife, $4,000.
60 Each dependent person sup
ported, $500.
charlottesville deductions are
the same as the federal income tax
law, and are as follows:
% Ordinary expenses in carry
ing on a trade or business.
90 Interest paid on invest
ments.
90 Losses not compensated by
insurance or otherwise.
% Debts ascertained to be
worthless.
go Reasonable allowance for
wear and tear of property.
90 Reasonable allowance for
depletion OF timber, mines, Oil and
gas wells and other natural deposits.
"a Gifts for religious, charit-
able and educational purposes, and
to war veterans, organizations.
Personal and family expenses are
not deductible, nor amounts paid
for Improvements which increase
the value of property, or for re-
storing property that has been COM
pensated for.
Not Neutrality-suspicious. or
other organizations not operated
for profit, such as labor and agri-
cultural organizations, fraternal
beneficiary societies, corporations
operated exclusively for religious,
charitable and educational purposes,
farmers mutual insurance, irriga-
ton and telephone companies, COM
mercial and recreational clubs, etc.
The Tax Rates-The proposed
law, like the federal law, imposes
two taxes.
First, there is a normal or flat
rate of two per cent on all incomes
in excess of the exemptions and
deductions allowed, regardless of
the income.
Second, there is a surtax which
is graduated and progressive, being
at the following rates:
% On the first $1,000 in excess
of exemptions and deductions,
none.
(2) On the second $1,000, one
fourth per cent.
60 On the third $1,000. one
half per cent.
% On the fourth $1,000, one
per cent.
50 On the fifth $1,000, one and
one-half per cent.
(6) On the sixth $1,000, two
per cent.
"a On the seventh $1,000, three
per cent.
(8) On all over $1,000, four
per cent.
Method of Collection-The re-
turns to be made in such form as
the state board of equalization may
prescribe, and shall conform as
near as may be to the blank forms
prescribed by the United States
commissioner of rel for the
enforcement of the federal income
tax law. This will avoid duplica-
ton and confusion, because the
taxpayer can use practically the