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Step Up and Pau Your Income Tax. Sans Uncle SamTO balance the anticipated falhi Ins oit in government revciiuaj from the lowered duties or the Underwood tariff, the Demo-crailc administration and Its support* era in congress decided to impose an income rax on all the citizens of tiift United States, natural s.nd artificial, who are fortunate* enough to possess Incomes of $4,000 or more, lly 'Tirci-ficial citizens la meant iho3c- corpora-tions which, according to the- anclect legal writers, have no bodies to be Jailed or killed and no souls to bo dr.mncd, but which, say the income taxers, havfe incomes to be assessed.As introduced Into the house of representatives. subject to amendment by the house And the senate, the income tax marked a radical change in the revenue policy of the United States. The tax will be a graded one upon the Sncomc-s of Individuals, but will not be graded upon the incomes of corporations. joint stock companies, associations and insurance companies.The bill provides for a normal rate of 1 per cent to be assessed upon all net Incomes, whether Individual or corporate. Individuals are to be allowed an exemption of $4,000. but there la to he no exemption for tho corporations. Individuals will pay the normal tax ot 1 per cent on Incomes over $4,000, while corporations wilt pny the normal l per cent tax on their entire net Income*. This Is a departure from the corporation tax feature of the former law, which permits corporations with lens than $5,000 income to escape the corporation lax.As a straight tax of 1 per cent would not produce the revenue required to make up for lessened customs rovenue. it was necessary to introduce a graded income tax feature. ThU Is based on tho British Income tax grading and is really a surtax. The rate o£ this surtax i« l per cent on that part of the income between $20,000 and JEO.000, a surtax of 2 per cent on that portion of the income which Is between J50.00 and $100,000, and a surtax of 3 per cant on that portion of the Income which Is above $100,000. It has been, estimated that some of the American multimillionaires will‘pay to the government each year sums in excess of $40,000.Statisticians aay the corporations which are now paying to the govem-i meat $29,500,000 annually In corporation taxes will pay not less than $37,-0000,000 under the income tax, which supersedes the corporation tax. This increase will be due mainly to the striking out of the $5,000 exemption and requiring the corporations to payPhoto by Ameriean* Press Association. .fUprsMntatlv* Cordell Hull of T«nntiM«, Father of the Income Tax.tion of section 9, article 1. or the constitution forbidding the levying of any direct tax save in proportion to tho census. The amendment aa approved by the states reads;The congross shall have power to lay and collect taxes on incomes, from whatever aource derived, without apportionment among the several states and without regard to any Census or enumeration-*'The author of the Income tar provision of the new tariff la Representative Cordell Hull of Tennessee. Democrat. He represents the Fourth district of Tennessee and haa been a member of four congresses. Ha Is still a young man, having been born la jB?I. and la a lawyer and a veteran of the Spanish -American war. Before his eleciion to the house of representatives Mr. Hull served on the bench of his state. He says at the income tax*.*T estimate that more than 1,000.000 people will contribute to the tax. About l.OOQ.OOO of them wilt pay the normal tax—that is, l per cent on incomes In excess of $4,000 per year and less than $20,000 per year. The number of contributors to the higher tax for Incomes more than $20,000 yer year I cannot even guess. Naturally the number will be relatively small, but there Is so much wealth widely ecat-tered through the United Scales that, accustomed as we are to reports of rich men, we may be surprised at the returns. The ways and means committee Uiinka there are in the United States 425.000 peraoaal incomes which will pay $70,125,000 and 268.252 1ft* cornea to give up $$7,000,000 more.. In charge of the collection of the In* come tax will be the commissioner of internal revenue, an official of the treasury department, with offices in. Washington, and subordinate officials, known as collectors, throughout the country’. President Wilson- recently nominated William H. Osborn of NorthCarolina for the office of commissioner. HASKELL F. THORNTON.on their net income*. The corporation tax l* worded *o as to exempt holding companies from payment of tax. but the income tax is to be assessed an bolding companies a* well as on other corporations.Before’the income tax could be introduced in the house of representatives, which body all measures for raising revenue must originate, the constitution of the United States hadto be amended. This' was done by means of the sixteenth amendment, ratified by thirty-six states, the three-fourths majority needed to amend any provision of the federal constitution.The last three states to fall Into line were Delaware, Wyoming and New Mexico on Feb. S of this year. Only one of them was* needed, since thirty-five states had previously, assented to the amendment It nullifies that por-♦TWENTY’FOUR hours make aDAY.Use of the new twenty-four hour time system In France is likely to give rise to some curious results. One of these relate* to the striking of the hour. It will not be very practical to use twenty-four stroke* or so In succession, as these would be very difficult to. count-after a certain point. The number of strokes should therefore be reduced in t some way. It is proposed to use a.dou-. ble chime, one bell for units and tbesecond for tens, the two bella to' have* a different tone or else with a single bell rapid strokes would show the tens and slow strokes the units, : * * * '• '*
Newspaper Details
Fort Wayne Journal Gazette
Fort Wayne, Indiana, US
Sun, May 11, 1913
Page 41
Full Page
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USA 05 May 2018
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