! The Standard Magazine Section Ogden, Utah, November 8 1913. I
I Unci Sam's new Income tax.
though its opponents call It a pen
alty upon success, does not succeed
completely I levying upon the In
comes of all of the successful. This
new tax causes one portion of tlio
press to run around In small circles
and foam at the mouth, while sun
dry editorial writer throw (It As
opposed to these, the other portion
of the press rojblce.
Rut an enormous list Of Amer.
bans will be found to have Euro
pean residences and therefore will
partially escape the new tax Call
the roll of these expatriates or
American heiresses who hae mar
ried plain folk or tiMes abroad and
you will he listening to the roll call
of the Standing Army of American
Plutocracy. These people have
pretty generally escaped the tax
I Which they should pav In this coun-
i trv tn return for the protection
which we nlve to the property from
which they get their enormous In
comes. In the following summarv you
wilt find the fortunes Of some of the
self-expatriated Americans. their
maiden name? and their Income tax.
First, of course, comet; William
Waldorf AMor. who married one of
the beautiful Vlrclnla T.anghorne
girls, a slstc- of Mrs Charles. Dana
Olbson Astor's fortune l $r7 000.
000 and Its tax thereon would he
S294.O00 On her fortune of
000.000 Mr? Ftalph Vivian, who wn
a Miss Roberts, would pay $.'.2,100
The Comitate Scechlnyl who "is
Gladys Vander'ollt and who married
a practically bankrupt nobleman
end paid him out of debt In his
native Hungary, would have to pay
S'2,100 on her J12.000.noo fortune
The Dnchesi of Roxburfhe who
was Miss May Ooelet. would be
called upon to pa $77 410 on h r
H I The ever In-trouble Anna Could.
H who married the dissolute spend-
thrift Bonl de CaateTIane and fll
H verred him after buying her dl-
vorce. and then married his Billy
Httle cousin. Prince Haifa de
B li Is still a long way from being
B I "broke" because of the lavleh ex.
pendltnres of her two husbands.
I She still has a fortune of Sio.ooo -
j 000. and In France thev levy a crood
fl stiff tax on it. Mrs Spender-nay.
H who was a Miss Astnr, is the last In
I the list to come In the $10,000,000
I fortune class and her tax, too, !?
I The Duches fie Valencay. ho
i ?M Miss Morton, it taxed SI". 010
on her fortr.ne of S6.00O.Q00; Lord
' f'urzon. who msrr'.Hl the beautiful
H Chicago Tlter girl and oarr'r.i her
H fo Tndla. where he was Viceroy,
fl must pav the same amount a the
Hl former Miss Morton on fortune
, W.T y . i.p.i.1.. ..." ' J "
I l "
of $6.000. 000 -a fortune by Inherit
ance. Mrs. Colin-Campbell, anotlb r
Lefter daughter from tit. Chicago
family, has a fortune of the aanie
gross dimon-lon and pays on It In
England a tax of $13,010. Baroness
Salhett. Mrs, Kred Guest Mrs. Al
merle Paget are in the $'..000,000
fortune class and each aro ' - pay a
t $11,010. M.s. O iest. It will
be recalled, Is tho daughter of
Henry Philips, tho Pittsburg mil
lionaire, who besides engaging in
commerce and manufacturing also
has invested In humanity and linan
cles the wonderful Phipps Institute
for the treatment of tuberculosis
which Is located In Philadelphia and
Is ranked asj one of the leading san
itarium ,.r preventoriums in the
Iady Choylesmore. who was Miss
French. Mrs. T Shaw Safe, who was
Miss o.immHI and Viscountess
Pecrhurst. who was tho former Mi--i
Bonynge. each posscsj a $3,000,000
fortune and the tax on that amount
y , - '
i.n ,-tt-i -irnii lr n i Kl iimi mih -in
So you can see for yourself that
our new income tax which lo5C3 tho
fight to collect on these huge for
tunes ia not yet the flawlefli Instru
ment that many would have you be
lieve. There are some very lurgo
hobs In the Income tax fish net and
apparently there Is no way to mend
There rr SIIU Oll.cis
wlio yti:hr rhelr Escape.
For example, there Is Ladr TA'.
Bereaford. the former Miss Ham
mersley. with a nice fat fortune of
$9,000,000, the tax on which is $2:
010. an i .rr, ravk1 neatty (Field)
with an $s.ooo,ftno on which the t i c
would be $19,010 Lady faen.
who was Mls Mirtln of NVw York,
has n fortune that has cllmbrfl up
to the $15,000,000 mark and would
have to pny Undo Sam $42,510. but
she does nothing of the kind be
cause there Is no wav Uncle Sam
can land her.
The Duchess of Marlborough
7hn ,vaq Onsueln Vanderbllt. has a
$1 2,000,000 fortune and pays the
British government $32,010 In In
ome tax. Baronet SMUrre. v .
was the former Bffsi O'Brlon, pays
19.010 on her $8,000,000 fortune.
Tdy Donough Moor, who was. Miss
raee, and Duche? le Pino, who
Mlai Sampson, pay $11,010 on
Little Lady Decfes, who was
Vivien Ooubi, pav 3 similar amount.
But the heartbreaking part of all
this to Pncle Sam Is that all of
the people named In this article
Who have become citizens, by mar.
r'nere or otherwise. of Great Britain
pny taxes to the Trltixh covernment
on the income of the property they
own In the Fnlted Statef That In
come tax. though, because It Is paid
In England, seems not to be reeard
ed as'"a penalty on micceaa." though
H Is much higher than the Income
In this country. The fact of the
business Is, of course that the rich
People of this eountrv have been
taxed as they should have been.
And this fet rAii, the nualnt de
rlajoA of J,j,Ijje pjeld w hen he paid
you reme-nber. in 1S96. that an
Income tax was unconstitutional be
cause such a tax was an "assault
upon capital" and but the precursor
of a war of the poor against the
rich" and a lot of other foolishness
Fvery citizen of the United States,
whether residing at horn, or abroad,
and eery person residing In the
Lr.lted States, whether a oltl.en or
not will be liable to thll tax. levied
at the rate of 1 per cent annually
upon such of his or hef entire net
income c.u exceeds $.1,000, except In
certain cases, which will bo men
The personal Income tax Is be
levied on the net Incomes of Indi
viduals. In ascertaining this net
income two kinds of deductions will
be allowed :rom the gross income.
The first of these Is known as tho
"specific exemption." which Is 3.
000 for all unmarried persons and
$4,000 for all married men living
with their wives or married women
living with their husbands. It
should be understood, however, thai
only one deduction of $4,000 Will
be made from the aggregate Income
of both husband and wife when liv
ing together. The second deduc
tion is that for necessary expenses.
Interest paid within tho year, taxes,
losses, etc.. allowable In the ascer
tainment of the net Income when
the grosa Income Is derived from
These deductions for necessary
expenses actually aid In carrying
out any business will not Include
personal, living or family expenses.
All necessary expenses, euch as
clerk hire, rental of place of busi
ness, lighting, heating, stationery,
livery charges, etc., will bo consid
ered as exceptions growing out of
tho conduct of the business. But
expenses for medical attendance,
storo accounts, family supplies,
wages of domestic servants, cost of
board, room or house rent for fam
ily or personal use will not be de.
ductlble from gross Income in mak
ing tho returns for net income.
Now. as to tho rates of this tax.
There is. fir: the "normal rate" of
I per cent on all net Incomes not
over $20,000. The amount of this
rate Is e Imated by taking 1 per
cent of the net Income minus the
exemption of the $3,000 or $4,000
allowable to the ,K.r.,on makln(r the
return. The law also provides for
an additional tax of 1 per cent per
annum upon the amount bv which
the total net Income exceeds $20 000
and does not exceed $50,000; 2 per
cent per annum upon total net ln
comes between $50 nr.o and $75 ooa
.: per cent upon $75,000 to $100,000;
4 per cent upon $100.00 to $250.'
5 per cent upon $250,000 to
$500,000. and 6 per cent upon net In
comes over $500,000.
How the Tax
Will Be "Heeled.
This tax will be obtained In two
ways by what Is known as collec
tion at source and collection from
the Individual. According to the
first method nil companies, corpor
ations, etc.. having the custody or
disposal of the Interest, premiums.
person, exceeding $ i.ouo for ar.y I C
taxable year, i-. required by the la kn
to p, ol f" li
g-wn . and p.iy It to the RotcrnrneUt i
. i But no c-tlon a! ? 0
the ourrc "111 I made "P1")
dividend, etc.. of orporatlons sab
Jec to the corporation t ix
A check upon holders of bond
mortgages and deeds of trust on Jt11
corporations Is impo-'-d ty the ne
own such securities j J ,
regardless of the amount "f "'ir t "
interest derived you will when you
'a-di checks or coupons for iuch In-
b real fin I thai i i" r '( ner an - n-u
num has been de.lu. ted ly ur Ul
bank and withheld for the rnut W
collector, whether your net lncom
reaches tl or Tot. In l!?!
other ',orJs, t '.our only revenue lfl j
the v. orlJ is $ i '
way Dond. 1 v-r cent of that u : L ,tai
withheld b: nk, and It wi'l KWJUii
. ujr i I pr e ' CBQ
t yoj are
not a adhi Ider of the tt- L"--r-,r
.lass. In which event the
amount withheld will be returned. I
The otht r mi II od, thai of r""rf M mL
tlon from the IndMdual. w' Ii
ertaken In thi manner. Evenr JW
tax "in be required to make g f u
r.-tte return of his annual Income to W,t 1
tho COJ ' internal revenue W M1.
the district in which he resides, th" jn 11
Utcment setting forth ipecinciJiJ Batd!
i roaa amount of Inc ne frow
Hpir sources, and front lJJ l Wh, "
mui1. be deducted the 3rcS' m
IteflM of expen ai ftt' rfi
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