INCOME TAX IN AMERICA

Hokitika Guardian, 3 July 1924, Page 1

INCOME TAX IN AMERICA

Those who cross the sea, said Hor-tK-Oj change their sky, hut not their disposition. Nor. in these days, do they escape income t>'X, The Englishman living in the United States is justly required to contribute, equally with the American citizen, to the upkeep of the -Government which guarantees him the blessings of Jaw and order. The annual collection has just been •made, says an “Alien. .Resident” writing in the London "Daily Mail.”

Every resident in America has to compute his annual profits and losses to baud to the district collector of “internal’’ (not “inland”) revenue. In America you do not wait, after giving in your return, for an assessment and a demand note. You assess yourself, and you pay "right away”—

either the whole tax. or. if you prefer, the first of four quarterly instalments. You take an oath before the collector that you have made a true and ({Mtiplete return. Your paper* then pass under the scrutiny of the central offices of tlie Bureau of internal Revenue. •

Your • returns are Hot computed on any three years’ average. You pay on your actual not income for the la“t calendar year. The deduct inns allowed art* much more liberal than those at home. 11l the first place you get a personal exemption of l.COOdofs. if you are a bachelor or of 2,ooodois. if you are the head of the family or a married mail living with your wife. A’ou may also strike olf -100 dols. for every child under 18 or other dependent person incapable of self-support.

The deductions that can lie claimed for business or professional expenses art* very much the same as those -permitted .in. -England, f But there are other forms of reliel that come to the Englishman ill America as a welcome novelty. You may deduct, for instance, -1 loss sustained by reason of fire, storm, shipwreck, or other casualty, whether it is eollliec-ted with your occupation or not.

Thus, if your automobile is destroyed by fire or your suiiiliier bungalow is damaged by a storm, yo(( may deduct the loss thereby sustained, in so far as it has not been covered fry insurance. Losses by burglary or theft or embezzlement are also deductible. You may further suhstraet from your total whatever taxes, other than Federal income tax, you have paid during the year. Those include, taxes oil personal property and leal estate, as well as the local taxes that in England we call “rates.” The fees for automobile licenses are regarded as taxes and may therefore he* deducted, also Cutsoms duties paid oil articles imported for your own use. If you are a benevolently disposed and public-spirited person, the. Government rewards your virtue. I'or you may deduct any contributions you have made to funds organised for religious, charitable, scientific, literary, or educational purposes.' Every church constitutes a religious organisation within llie. meaning ol the Act. No deduction is allowed for a gift of alms to an individual. It must he made to a charitable society or organised fund- . .. . •