Evening star., 1933-03-05

-@HE phalanx Of the Nations msst
well-to-do-the income taxpay-
ers-is marching by the Gov
i ernment's Golfers these days
dumping in their dollars.
In the last fiscal year, ending June SO.
1882, they paid $l,057 900, 600, compared
with more than twice that amount IN
1929. For the present fiscal year end
ing June 80, 1898, Government est1-
mates put receipts at $3.50. 1000, 900.
Exemptions have been lowered this
wear to bolster the falling receipts. IN
1882 single persons had an exemption
of 81 500 and married persons an ex-
emption Of $500. These have been
reduced to $1,000 and $4,000, re-
spectively.
Returns TO be Increased.
These rates probably will add two
to three million persons to the total
number filing returns, but may not ma
terially raise the number paying taxes
or the amount of the taxes, since IN.
comes, both corporation and individual
have declined considerably.
If you fall in any OF the three 1ol-
lowing classes you must file return,
dlLllOu8kl SAC11lPtSS44o obN
NAV save you from paying tax:
/. All single persons having net In
come Of 81 900 or more.
2. All married persons having a net
income Of $2,500 or more.
8. All persons and businesses having
q gross income of 5000 or more, re-
gardless Of net income.
Net income is income after deduction
Of expenses necessary Tor running a
business, such as cost Of goods, salaries
paid out, office expenses, and SO on.
Gross income IS income before these
expenses. Wage and salary receivers
generally have no such expenses SO
that the salary or wage Is net income:
A travelling man, however. who paid
his own expenses and was not re, re-
might deduct them from his salary to
calculate his net income.
Many Claiming Exemptions.
Never before, tax officials say. has
the public been so anxious to take ad-
vantage Of every possible exemption,
looking for deductions that would have
been passed over hurriedly not so long
ago as inconsequenttal.
For the purpose Of indicating pos
sible exemptions and deductions, con-
slider for example, a single man receiv-
ing net income Of $1,500 and mar
ried man receiving $4,000. Each would
first take hts personal exemption OF
81 900 and $2,500 respectively. leaving q
taxable net income In each case OF $500:
A single person may also be the head
Of family and be entitled to the same
So, 500 exemption which the married
person receives. A bachelor supporting
his mother In his own home or other
dependents would be the head OF q
family. He may further claim $500
additional exemption for such de-
pendents.
Exempt s4oo for Dependent.
Likewise the married man may de-
duct S4O0 for each of his dependents.
Suppose, however, that neither OF the
income receivers in this example had
dependents. They would then have a
taxable income Of $500. This may be
The TAXPAYER, for example, gives to
his church perhaps q dollar week. or
a deodction of about $50, leaving $3.50
taxable income.
Other deductions include amusement
taxes. electric power taxes, in fact, all
such Federal taxes which are paid by
the consumer and not by the manu-
facturer.
Cigarette taxes are not deductible
Fire and theft losses not covered by
insurance are deductible. State income
taxes and other taxes paid directly to
q state or its political subdivisions are
deductible. ,
Interest paid out, bad debts. stock
losses on stocks held two years, and
automobile license fees are other de-
ductible items. The aggregate OF these
may reach another $50 or $l00, or more
If there are some especially large items
4Per Cent Tax on First, $4,000.
Suppose they total $50, thus reduc'
ing the taxable income to $500. The
taxpayer would then owe $l6 or 4 per
cent Of $400.
Tho tax rate Is 1 per cent on the
frst $4,000 of the finally ascertained
taxable income. A single man who
had q net income Of $4,000 and no de-
ductions beyond his personal exemption
Of $1,000 would pay $16o or $40 q
thousand.
A married man with . net income
Of $500 would pay the same tax. Fol
amounts beyond this. the tax rate Is
per cent.
In addition. If the net income Il
over $4,000 there are graduated sur.
taxes running up to IS per cent.