The Davenport New Era (Davenport, Okla.), Vol. 9, No. 46, Ed. 1 Thursday, December 27, 1917 Page: 3 of 10
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THE DAVENPORT NEW ERA
WHO WILL PAY THE INCOME TAX?
m
Hubert L. Bolen
By Hubert L. Bolen, Revenue Collector for Oklahoma.
The unmarried individual who eceived a net income of $1000, or more,
from all sources during the calendar year 1917, must report his income to
the Collector of Internal Revenue and pay the tax on all amounts above
$1000.00. A married individual, or the head of a family, who received a net
income of $2000, or more from all sources during the same period must report
his income to the Collector and pay the tax on all amounts above the $2000,
unless there are children under the age of 18 years dependent upon such
person for support, in which case an
additional exemption of $200 for each
child is allowed.
Here are some rules to go by to
determine whether you should file , a
statement ofo your income with the
Collector. These suggestions are of
particular interest to the farmers
throughout the country for the reason
that very few farmers understand just
what "income" is wiiliin the meaning
of the Income tax law as defined by
the Department of Internal Revenue.
Gross Income.
Income is defined by the govern-
ment as gains, profits and income de-
rived from salaries, wages, commis-
sions, from professions, vocations, bus-
inesses, trade, commerce, or sales, or
dealings in property, whether real or
personal, also from interest, rents, in-
terest on bonds, and partnership gains.
In the case of a farmer the run-
ning of his farm is his business and
the income derived from that business
is subject to the income tax. The
value of everything raised and- pro-
duced on the farm during the year
1917, regardless of wiiether the prod-
ucts were consumed by the farmer for
feeding purposes, family use, seed,
etc., or whether the products were disposed of by sale, must be considered
income. This includes the value of the wheat crop disposed of in 1917, the
oats, corn, cotton, and cotton seed, alfalfa, rye, millet, timothy, kafir corn,
broom corn, barley, feterita, hay and straw, rice, flax, clover seed, horses
and mules, cattle, hogs, sheep, chickens, turkeys, ducks, bees and honey, eggs,
butter, cheese, vegetables, peanuts and pecans, cow peas, fruits and berries,
wood and timber and other products not enumerated, disposed of during
1917. The sale price of livestock sold during the year (credit for the cost
of such livestock is allowed under expenses), must be accounted for as
gross income; also all rents received, including crop-share rents and amounts
received in money or its equivalent as rent for work or breeding animals,
must be included. All Interest received on money loaned, on bank deposits,
etc., the individual's share in the net profits of partnerships, whether such
profits have been distributed or not, royalties from oil, gas and mining prop-
erties, and dividends from bank stock and other stock of domestic corpora-
tions, must all be included and reported as gross income.
Deductions.
From the gross income the individual is allowed certain deductions, such
as the expenses of running the business (no family or living expenses can
be deducted) In the case of a farmer the expenses of running the farm,
such as money or its equivalent paid for hired help; taxes paid during 1911
(except Income taxes); interest on borrowed money paid in 1917; the cost of
seed, grain, hay and straw purchased in 1917; cost of live stock purchased
for resale; loss of livestock by death, theft, etc., the cost of which was not
covered by insurance; freight or express in marketing products; deprecia-
tion in farm buildings (except the farmer's own dwelling and contents
thereof) of not to exceed 5 per cent, of the original cost in the case of
frame buildings, and 2% per cent, of the original cost in the case of brick
buildings; and depreciation in farm machinery of not to exceed 10 per cent
of the original cost. (Tht rntire cost of small hand tools purchased during
the year may he deducted as an expense for that year.) In <ne case of oil or
gas wells or mires on the farm, the owner of the land may deduct a reason-
able per cent, of the cost of the land for depletion. The total of the amounts
claimed under the items here enumerated gives the total deductions to
which the individual is entitled in determining the amount of his NET
INCOME.
Subtract the total deductions from the total gross income and you will
have the amount of your net income.
After the amount of the net income received during 1917 is determined
the individual is interested in knowing just how much tax he must pay on
that amount. A certain amount of the net income is exempt from taxation
In the case of an unmarried individual $1000 is exempt; in the case of a
married individual, or the head of a family, $2000 is exempt.
(By the term "head of a family" is meant an unmarried individual who
actually supports and maintains one or more persons who are closely con-
nected with him or her by blood relationship, relationship by marriage or
by adoption.)
In addition to the above exemptions there is allowed an exemption in
the sum of $200 for each dependent child under the age of 18 years, and $200
for each older child if she or he is incapable of self support because mentally
or physically defective.
Tax Imposed.
On all amounts above the exemptions allowed by law the individual is
subject to a tax as follows;
AGRICULTURE IDE
MAINSTAY OF THE
Net Income
{ 1,000
1,200
1,500
1,800
2,000
2,500
1,000
4,500
4,000
5,000
6,000
7,000
7,500
9,00fl
10,000
Man's tax
Married
$
10
20
30
40
SO
130
ISO
205
235
355
Man's tax
Single
$
4
10
1(1
20
30
40
(10
80
120
170
220
215
335
395
Net Income
11,000
12,000
13,1100
14,000
15,00(1
16,000
17,00(1
18,000
19,000
20,00(1
21.000
22,000
23.000
24,000
25,000
Man's tax
Married
42*
495
570
(550
730
S20
910
1,000
1,090
1.1 so
1,300
1,420
1,540
1,(160
1,780
Man's tax
Single
465
535
610
690
770
860
950
1,040
1,130
1,220
1,340
1,460
1,580
1.700
1.820
Things To Be Remembered.
An ordinary hen will produce 8 dozen eggs per year An ordinary cow
will produce $60.00 worth of butter fat per year The value of produce trailed
at stores for groceries, meats, dry goods, etc., is the market price of the
merchandise received, and such value must be accounted for as income
The United States and Canada
Have a Great Responsibility.
This is the day when the farmer
has his innings. The time was when
he was dubbed the "farmer," the
"mossback," and in a tone that could
never have been called derisive, but
still there was in it the inflection that
he was occupying an inferior position.
The stilt upper lip that the farmer car-
ried, warded off any approach that his
occupation was a degrading one. His
hour arrived, though, and for some
years past he has been looked up to as
occupying a high position.
Agriculture, by a natural trend of
economic conditions, stands out today
in strong relief, as the leader in the
world's pursuits. Never In the nation's
history have the eyes of the world
been so universally focused on the
farm. The farmer is the man of im-
portance; the manufacturer of its most
necessary product, and he now enjoys
the dual satisfaction of reaping a max-
imum of profit, as a result of his opera-
tions, while lie also becomes a strong
factor in molding the world's destinies.
Manufacturers, business men, pro-
fessional men and bankers realize the
Importance of agriculture, and gladly
acknowledge it as the twin sister to
commerce. In commercial, financial
and political crisis, the tiller of the
soil takes the most Important place.
Maximum prices, the highest in many
decades, show the world's recognition
of the necessary requirement for more
farm stuffs. The time was coming
when tills would have been brought
about automatically, but war time
conditions urged it forward, while the
farmer was able to secure land at rea-
sonable prices. Throughout several of
the Western states this condition ex-
ists, as also in AVestern Canada.
Never lias such a condition been
known in commercial life. It is truly
an opportunity of a lifetime. Large
and sum11 manufacturing concerns and
practically every other line of busi-
ness have beew limited In their profits
to the point of almost heroic sacrifice,
while it is possible today to reap divi-
dends in farming unequaled in any
other line.
Thirty, and as high as fifty bushels
of wheat per acre at $2.20 per bushel
and all other farm produce on a simi-
lar basis, grown and produced on land
available at from $15 to $40 per acre
represents a return of profit despite
higher cost of labor t>nd machinery,
that, in many cases runs even higher
than 100% of an annual return on the
! amount invested. Such is the present
day condition in Western Canada. How
long it will last, no one can foretell.
Prices for farm produce will likely re-
main high for many years. Certainly,
the low prices of past years will not
come again in tills generation. The
lands referred to, are low In price at
present, but they will certainly in-
crease to their naturally productive
value as soon as the demand for tliern
necessitates this Increase, and tills day
is not far distant. This demand is
growing daily; the farmer now on the
ground is adding to his holdings while
prices are low; the agriculturist on
high priced lnnds Is realizing that he
is not getting all the profit that his
neighbor In Western Canada is secur-
ing; the tenant farmer is seeking a
home of his own, which he can buy
on what he was paying out for rent,
and many are forsaking the crowded
cities to grasp these unprecedented op-
portunities.
The tenant farmer, and the owner
of high priced land, is now awakening
to tiut realization that he is not get-
ting the return for his labor and in-
vestment that It is possible to secure In
Western Canada. Thousands are mak-
ing trips of Inspection to personally in-
vestigate conditions and to acquaint
themselves with the broadening bene-
fits derived by visiting Western Can-
ada. Such trips awaken in a progres-
sive man that natural desire to do
bigger things, to accomplish as much
as his neighbor, and frequently result
In convincing and satisfying him that
God's most fertile outdoors, with a big
supply of nature's best climatic and
health-giving conditions lies In West-
ern Canada.
The days of pioneering are over; the
seeker after a new home travels
through all parts of the country on the
same good railway trains as he has
been accustomed to at home, but on
which he has been accorded a special
railway rate of about one cent a mile,
lie finds good roads for autoinobillng
and other trafllc; rural telephone lines
owned by the provincial governments;
rural schools and churches situated
conveniently to all; well appointed and
homelike buildings, and everywhere an
indication of general prosperity; cities
and towns with all modern improve-
ments, and what is the most convinc-
ing factor in his decision, a satisfied
and prosperous people, with a whole
hearted welcome to that country of a
larger life and greater opportunities.
To Western Canada belongs the dis-
tinguished honor of being the holder
of all world's championships in wheat
and oats for both quality and quantity.
For many years in succession Western
Canada has proven her claim for su-
premacy in the most keenly contested
National exhibitions and to her is cred-
ited the largest wheat and oat yields
America has known The natural con-
ditions peculiar io Western Canada
and so adaptable to grain growing has
been an Insurmountable barrier for her
competitors lo overcome. In the last
few years tlie yields of wheat and
oats per acre have surprised the agri-
cultural world. As much as sixty hush-
els of wheat per acre has been grown
on some farms, while others have fur-
nished affidavits showing over fifty
bushels of wheat per acre, and oats as
high as one hundred and twenty bush-
els per acre. One reputable farmer
makes affidavit to a crop return of over
fifty-four thousand bushels of wheat
from a thousand acres. While this Is
rather the exception than the rule,
these yields serve to illustrate the fer-
tility of the soil and the possibilities
of the country, when good farming
methods are adopted. Western Can-
ada can surely lay undisputed claim to
being "The World's natural bread bas-
ket."—Advertisement.
An Appealing Custom.
"An Eskimo wears the same suit of
clothes all the year round."
"I've heard so," replied the man with
the shiny coat sleeve. "Sometimes I'm
tempted to move away up north where
that sort of thing Is fashionable."
STOP THAT HACKING COUGH.
Mansfield (formerly Hungarian)
Cough Balsam heals the inflamed and
lacerated membranes and quiets the
tickling nerves that lie underneath the
Infected portions. Invaluable for ba-
bies. Price 25c and 50c.—Adv.
Do Not Make Sacrifice.
Human life is more important than
property. Don't sacrifice the one to
get the other.
WOMAN'S CROWNING GLORY
Is her hair. If yours is streaked with
ugly, grizzly, gray hairs, use "La Cre-
ole" Hair Dressing and change it In
the natural way. Price $1.00.—Adv.
A cynic is a man whose disappoint-
ment is due to tiie fact that the world
was made without his advice.
The Quinine Th ( Does Not ttfect Hfad
Because of Its tonic anil laxative effect,
Bronx. Qulnlnt cun tin taken by *uyon« wltboat
causlna nervousness or rtnmn* in w K.dvh'I
Is only on« "Bromo Quinine IS. W. fl o
r lgnature la on bo*. 80c
Humanity is more extravagant with
| anathemas than with praise.
T
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Tryon, W. M. The Davenport New Era (Davenport, Okla.), Vol. 9, No. 46, Ed. 1 Thursday, December 27, 1917, newspaper, December 27, 1917; Davenport, Oklahoma. (https://gateway.okhistory.org/ark:/67531/metadc109459/m1/3/: accessed April 24, 2024), The Gateway to Oklahoma History, https://gateway.okhistory.org; crediting Oklahoma Historical Society.