Show 1 F Income Tax r I r 04 0 4 The Tho normal rat rate o of tax under the tho revenue re act o of 1024 Is 2 pee pel cent on the tho first 4 00 net In- In income In Income come como I in excess ot of o the personal exemption credit for tor dependents etc 4 per cent on the tho next 4 00 and 6 G per cent on time the The fhe surtax Is la a graduated tas ta up- up upon upon up upon on the tho net Income ot of o any Individual In excess of o 10 Tho ate ot of tax begins begin at 1 L per cent of ot the tho amount In e excess ces of o 10 Jut lut not In excess of ot 14 Upon Incomes of ot 14 th there I Is n a tax hex of 40 with rising graduations graduation until finally the tax Is la upon Iet Incomes of ot GOO and upon net Incomes In excess of 0 00 Li- Li Lii In i 40 Der ncr r rent cent c nj of ot such cx- cx x cesil Under the o proceeding act tIme the nom l rates rats were 4 per cent on time tho first 4 4 of net Income above the exemptions and ancl ci el eel Its and 8 S per Ier cent on the rent of net Income while the thi surtax rate rates ranged from 1 per cent on onI I the tho amount by which the tho net nt In- In Income in income come exceeded and ami gild uld not exceed 10 10 to 50 GO 0 per cent of the tho amount by which tho ho net In- In Income income in income come exceeded I The revenue act of 1924 contains a special provision for tor reduced which did not appear 1 11 pre Iou laws All net Income UP tIP I Ito to tIme the amount of tO a Is Ia deemed I Ito to be bo earned Income On this amount the taxpayer I la Is entitled to toa toa 1 of time tile 0 a credit ot of 25 per cent amount of the tax For lor example a tax taxpayer po cr unmarried and Ith no dependents v hood net Income neome for tor 1924 1024 was nag would pay I this reduction a tax of 80 ills His HI actual tax I is hO bO t 0 From I his net Income of 5 6 he is M- M at lowed a personal exemption of 1000 1 tho the tax lax of ot 2 per tent on the tho first 4 Is la SO 30 SO one one fourth of which or 20 may bo be do- do In no case Is la the earned considered to be bo In excess of o U tie tie- 10 0 As an n Instance a a er married and v with Ith two children received In 1924 a n salary of l 12 His total tn ta ta IncludIng Including ing normal and surtax without the 26 per cent reduction on tamed arn d net In Income comO would amount to Or e ho may deduct from 10 the tho maximum amount of earned net income 3 30 lOd-a lOd a per personal onal exemption of ot 2 U plus II a credit for or each earle dependent On tho ho 6 his tax amounts to 2 2 per cent on the tho first and nd 4 pcr p r cent cont on the 2 One fourth ot of o amount or 47 deducted tram from leaves layos as tho the amount of tn ta due Another example Is 1 that ot or II a man with no dependents salary was 3 and mho ho homade made In a real estate transaction a profit prom of ot On a netI net in in- in income I come conic of o hl his tax without the tho ot of the tho 26 C per cent re- re reduction re reduction I would amount to 1000 leas Isa a D personal exemption 1 of 2500 2600 equalling 4 U OO on whIch the tho tax on the tho tint fht 1000 at 2 1 per cent Is la 80 and on time the I at 4 poe pel el cent s is 20 lO flut while white imI his hia net not Income from salary was vas only 3 the thenet act Lct provides pro thet th it et t 2 shill h 1 be considered a as earned Income om I 5 therefore Is deducted hI lilt exemption of ot 2 l OO the tho thoI tax on the rem at 2 per her cent I to 60 50 One fourth or of this amount or 1 12 l 60 SO may y be do- do de do deducted ducted from leaving 87 81 60 50 ns as the amount due |