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Show Men of wealth have been pic- - , tured for so many years as persona jg A who would do anything to evade paying: their taxes that considerable g ft surpriso has been manifested In the last few months at the readiness - 1 with which Income returns have I been made in tho offices of the 5 S United States revenue collectors. j i The revenue officers will not give tho returns of anyone person. At r. least they have orders not to give ft f out any reports, and In Instances I where reports havo been given out ( It has been duo'to violations of tho law. Tho total reports, however, - jt can be given out and estimates from js' Various cities based on thoso r-f r-f ports causes the heart of the treas- ? nrer of tho United States :o ro- JoIce. J The money expected from tho In-Come In-Come tax will bo larger than it was at first supposed it would be. Before Be-fore the first of tho year revenue officers made up estimates In tholr own localities as to the Income tax they would collect. These eatl-.. eatl-.. mates havo been exceeded In nearly $ every instance ir It Is Impossible to exactly cstl- S mato a man's Income, but the rcv-v rcv-v jj enuo oftlcers are good guessors and When a man makes a return far I dc!ow what tho gue3S says, an ln-l ln-l ycstigatIon Is begun. i The revenue officers study their ;1 'district carefully and can almost Ef I'tell to a man how many Incomes 3 there are In the district that can ie ;I taxed. When the persons with the $ supposed Incomes do not report an Q Investigation Is begun. Rich men Aand women havo learned It is alls al-ls most impossible to ovado the ruv-yenue ruv-yenue ofllcers and that has faclll-stated faclll-stated the collectio'i of the incomo ptax. Men would rather pay the tax J than to stand the penalties aftor- ward. f It Is not difficult for tho federal 3'offlcors to mako a fair guess as to $a man's income. They first go o"cr ;Ms tax reort to the State. That ij shows tho amount of ills property, 1 The probable Income of that prop-g.erty prop-g.erty 3 then estimated. But thore if are thousands of persons who falsl-t.1y falsl-t.1y their returns to the State tax tl collector so tho federal investigator a has to go further, j The stockholders of corporations ji often conceal tho amount of stock tithey bave. The federal authorities thave other ways of investigating the pfaniount of stocks, bonds and bank deposits. Kg Much interest attaches In muny Ljlocalltles as to who is the richect iSinn or woman. If the Income tax J"0turn wore made public there fdoubtlcss would bu many surprises. 4 .t'-l'liero is no doubt bu Dial John $D ttoi-kolelier Is the highest tax if Payer. Mrs. Hetty Green, long rc- i'Jiuted to be tho richest woman .In 4 fA'nerlca. doubtless would not rank i up with many other women In tho annual Income. James J. Hill and Simon Guggenheim Guggen-heim are rich men in their own localities, lo-calities, but do not rank with rich men in tho bigser population centers. cen-ters. Although the reports are not complete it is estimated that there are 430,000 American citizens whose Income Is $3,000 a year or more, and who come under tho list of taxable porsons. The lax afTccts not only tho men commonly classed as rich, but takes in salaried mon, farmers, doctors, small store keepers keep-ers and others. INCOME OF 5.1,000 IS LOWEST TAXED. Under the now incomo tax law every citizen whose net income exceeds ex-ceeds 53,000 will bo required to pay a normal tax of 1 per cent upon such excoss, Tho statutory exemption of 53,-000 53,-000 Is allowed for personal living or family expenses; however, this and other gross income for which special spe-cial deductions aro allowed by the law must be embraced in the return re-turn of gross Income, and tho Commissioner Com-missioner of Internal Revenue will make thoso deductions when ho assesses as-sesses and computes the tax. Each taxpayer will be notified of the amount of tax due by Juno 1, 1011, and will be required to inuko pav-mont pav-mont by Jnnc 30, 1014. Tho normal tax upon Individuals Is assessed and collected by either one or both of two methods, viz., personal return of the taxpayer and deduction and payment at tho source of the Income. Following Is given a synopsis of the new law as It relates to tho taxation of individuals. The corporation cor-poration tax provisions aro not included in-cluded for the reason that they are . substantially a continuation of the present corporation excise laws. Incomes covered include those of all citizens of the United Slates residing re-siding at homo or abroad. Those of all persons residing in the United States, although not citizens citi-zens thereof. All net Incomes from property owned and from every business, trado or profession curried on In ihc United States. IIIGILEK KATE CHARGED BACHELORS. Tlio lax is 1 per cent per annum upon the amount of net income over 53,000 for individuals and over $1,- 000 for husband and wife living together, to-gether, One per cent per annum additional addition-al tax upon the total amount of not Income from all sources over $20,-000 $20,-000 and not over 50.000 per annum. an-num. Two per cent per annum upon tho amount of net Incomo over 550,000 and not over $75,000. Three per cent per annum upon tho amount by which tho total net incomo exceeds $75,000 and does not exceed $100,000. Four per cent ier annum upon the amount by which total not income in-come exceeds 5100, 0C0 and does not exceed $250,000. Flvo per cent per annum upon Iho amount by which tho total net Incomo In-como exceeds $250,000 and does not exceed $500,000. Six per cent per annum upon the amount by which the total net Incomo In-como exceeds $500,000. I JOHN D. ROCKEFEL-LER, ROCKEFEL-LER, upper left; Simon Guggenheim , upper right; Hettie Green, lower left; James J. Hill, lower right. For the purpose of tho additional addition-al tax the total net Income shall comprise that embraced In personal per-sonal return, that on which tax is withheld at the source, dividends from corporations and also undivided undi-vided profits of corporations In tho nauro of mere holding companies or those formed to evado the tax. Not Incomo Includes all gains, profits and incomo derived from salaries, sal-aries, wages or compensation for personal services of any kind and however paid. Professions or voca-tlona. voca-tlona. Business, trado or commerce. Sales or dealings in property, real estate or personal, growing out of the ownership or use of or interest in property, real or personal. Interest, Inter-est, rent, dividends and securities. Transactions of any lawful business busi-ness carried on for gain or profit. Gains or profits or Income derived from any sourco whatever. Income, but not the value, of property acquired by gift, bequest, devise or descent. Neither the return of ;my part of principal invested In life Insurance lo the insured, nor proceeds of policies pol-icies paid upon the death of the insured, in-sured, are Included as income. DEDUCTIONS ALLOWED IN MAKING KETUKNS. Deductions are allowed for necessary neces-sary expenses actually incurred in carrying on any business. All interest inter-est accrued and pnyaDio within tho year on indebtedness. All national, jH State, county, school and munlcl- jH pal taxes. Losses actually sustained during the year in business, not . compensated by Insurance or other- ) wise, arlslns from fire, storm or' shipwreck. Debts actually ascerA jH tained to bo worthless and charged off during tho year. A reasonable jH allowance for tho exhaustion of jH wear and tear of property arising out of its uso or employment in business. Not to exceed, in the case of mines, 5 per cent of tho gross value of tho mine, of tho output for tho year. All income tho tax upoi. which has been paid at the sourco. Amounts received as dividends up-on up-on tho stock of any corporation, etc., which is taxed upon Its net In-come, In-come, but such dividends shall not be deductible unless first reported in return as part of gross Income. No deduction will be allowed on z personal, living or family expenses. Taxes assessed against local bene-fits; bene-fits; expenses of restoring property or making good tho exhaustion thorof, for which an allowance has jH been made; amounts paid for new iH buildings, permanent improvements ijl or betterments mado to increase the ijl value of any property or estate. jH |
