Newspapers / The Alleghany News and … / June 17, 1943, edition 1 / Page 2
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20% Of Your Pay To Be Withheld As Income Levy '^Exemptions Will Trim Actual Deductions In Most Cases The modified Ruhil income tax iUnSt, known as ’‘pay-as-you-go,” W9S11 go into effect July 1. After Idhat date, one-fifth of every worker’s pay, after certain allow ances, will be taken out by his “employer, and serit 'to the federal ‘'<tax collector. This is £he “with *holding” provision, by which ev eryone pays his taxes in the year in which he earns the taxable in '■-come. Re pays 1943 taxes in •1943, that is. The other important part of the rjyew act is the so-called "forgive Vmhb” of the tax oh the 1942— Xest year’s—income. In the ori ’JfSnal Ruml bill, complete cross ing off of the 1942 tax was in tasnded, bvit as finally passed by hfiAh houses, the “forgiveness” ^amounts to about three-fourths ■sot last year’s bill, for most peo pik Farmers do ndt pay the 20 per cent weekly tax as such. The law says that if 80 per cent of your gross income comes from ‘terming, you will file an estimate •of your taxable income for 1943, on December 15, and make a pay ment based on this estimate. Then, on March 15, 1944, you will -send in a corrected report of tax able -income, and an adjusted pay ment If your estimate is in er ror, that is too low, by more than one-third of your corrected in come figure, you must pay 6 per •cent penalty on the amount of error. , ,, Agricultural workers, house Aflj&d help, and people irregularly ►'employed, are exceptions also. ' These ’workers file estimates of ' IMS income on September 15, this iyenr. In 'future years the date ’’Will be 'March 15. The tax will be paid quarterly. Most high : salaried persons come under this provision, too. All within this .■group do not have tW2P per cent weekly withheld ffcm their earn ings, but pay oh tfipir, incomes the following year, as everyone •‘■•did up to now. Tor people earning regular wages or salaries then, the new tax will operate this way: "Twenty per cent of your earn ings will be withheld every week, after deductions for allowances. These allowances are: The first 3tt2 of weekly paycheck is not - taxable if you are single. If you s»ne married, the first $24 is ex " and six dollars is added to v sx^ifijjftion for every child or oth ' $r" dependent. On whatever sum i-w'teft after subtracting these ex emptions, the • employer must withhold 20 per cent for the Bu reau of internal Revenue. "Other groups excluded from the withholding provision are self employed men and women,, mem bers of the armed forces, doctors, lawyers, ministers, and other in dependent professional workers. High salaried corporation officers, government workers, and similar employees, however, are subject to the 20 per cent withholding -tax. Tike “forgiveness” part of the r bill^te confusing in detail, but ^ <5*e principle is fairly simple. " The wording of the bill says that the tax for either “1942 or 1943, whichever is lower,” is the year that will be forgiven in large part As before stated, in most * leases, 75 per cent is wiped off. Just bow much will be cancel led, depends on the size of your tax. If it was $50 or less in 1942, aD of it is forgiven. If it vu between $50 and $66.67, then $50 of it is cancelled. If it was more than $66.67 then 75 per cent of the tax is forgotten. Criti cism has arisen concerning cer tain alleged inequalities under this scale. The remaining 25 per cent of your tax must be paid. Accord ing to the law, one-half of the 25 per cent owed should be paid by March 15, 1944, and the remain ing half by March 15, 1945. Con trary to the belief of many peo plje, the first quarterly install ment on the 1942 tax, paid last March 15, will be credited on this year’s, 1943, taxes, in order to put everyone on a current, or “pay-as-you-go,” footing. The remnant of the 1942 tax, the 25 per cent, is carried forward, still unpaid. In a few special cases, where the 1942 income was very high, (called “windfall income” result ing from war contracts generally) the taxpayer will not be able to get on a current basis until 1946, or possibly 1949. It is also point ed out by fiscal experts, that there will be no year in which taxpayers escape paying taxes. Cither requirements under the new bill are: You must pay your June 15 installment. This pay ment and the one you made last March will be added together and applied to your 1943 tax bill. (Or as explained before, to your 1942 income, if it was high er.) Also it must be remembered, the 20 per cent weekly held out of your pay, may not entirely take care of your tax liability. You may have other income, or there may be some other reason why you would have to pay more than the -20 per cent deducted. Higher Texes Than Ever It is also pointed out, that you will probably pay higher taxes during the next two years, at least than you ever before did, despite the relief of the cancella tion of 75 per cent or more of your bill, for one year. This is because of the higher rate of taxation— higher than ever before in our history. You must continue to file a re port on income, at least once a year, as before, even though you may not owe anything, after con sidering the withholding tax you have been paying. If your in come is less than $2,700 net if single and $3,500 if married, the withholding tax will probably take care of all you owe. ‘Pay As You Go’ The purpose of the new tax law has been stated by its pro ponents as a method of putting everyone on a current, or “pay as-you-go” basis. Thus, as ori ginally intended, the new tax law would abolish all indebted ness to the government, in most case*. As modified, this has not been entirely accomplished, but it has been substantially achieved. Another intention is to ease the strain of large payments now nec essary. It has been contended that many tax payers are not able to save up enough during a year to pay their taxes in lump sums during the next year, even with the four installment system. By taking the tax out every week, the wage earner adjusts his liv ing costs to the lower income, and thereby pays his tax off gradually, with less difficulty. At present, many people have had to borrow, often at high interest rates, to meet their payments, say the proponents of the “pay as-you-go” act. Because of the immense cost of the war, every dollar of revenue that can must be collected, ac cording to treasury officials. To help avoid inflationary dangers, as much money as possible must be raised by taxation, they state. Hope to Raise 16 Billions Hie treasury officials hope to raise about 16 billion dollars of WANTED! IVY and LAUREL BURLS CLEAR DOGWOOD — DIAMETER * UP Va dat bay boundaries of Ivy and Lanral Boris and Dogwood. HIGHEST MARKET PRICE PAID! Carolina Briar Corporation SAW MILLS’ West Jeffenoa, N. C Gain, V irginia Cranberry. N. C BUT WAS BONDS! additional revenue in IMS, large ly from income taxes. Opinions in congress is that this sum is too high and that ten billions is prob ably the largest sum possible, un less tax rates are much increas ed. For various reasons, inform ed opinion believes that the rates will not be raised much, if any more. Income taxes will yield around 25 billion dollars in 1943, treas ury officials anticipate, or more than twice the 11 billions collect ed in 1942. Other taxes will yield about seven billions, or at about the same level as last year. A War Food Production order establishes control over the dis tribution of organic nitrogen. Fertilizer manufacturers may ac quire 70 percent of the amount of such materials used for fertili zer last season. Piney Creek News Miss Mildred Halsey, of Wythe ville, Va., spent a few day* last week visiting her mother, Mrs. Victoria Halsey before leaving for Washington, where She has accepted a position with the FBI. Mrs. W. C. Weaver left last week to spend a few days with her sister, Mrs. Mary Crouse at Sparta. Miss Cora Halsey, who was painfully injured in a recent car collision, is improving slowly. Inez Marie Douglas is visiting her grandmother Mrs Joseph Douglas. Heavy rainfall and large hail stones—some as large as a mar ble, fell Sunday week, and a downpour of rain the following Tuesday did considerable damage to soil, gardens and crops. Piney Creek was out of its banks in less than half an hour and one “old timer" said more water went down than during the ’Id flood. Mrs. Jennie Warden visited rel atives in the community last Mr. ahd Mrs. L. C. Caudill and son, Robert, left Friday for Ma ryland. Born to Mr. and Mrs. Ray Pur lear, of Piney Creek, on Monday, May 31, a six-pound baby girl, Nancy Carole. Born to Mr. and Mis. Ray Hash, of Piney Creek, on Monday May 31 a seven-pound baby boy. BACK UP YOUR BOY pmyr^ll itviifi f»! IN THI MARINIS tb*y sayt WRIIIE* far tot the favorite djnurette co in the Marine* fmsr MfTHE SBWCF The favorite cicuette with ssir is Camel. ( you it, miNi! WELS HAVE WHAT IT TAKES! 1 Notice To Subscribers Effective July 15 Subscriptions Rates Of The Alleghany News WILL BE $1.50 Per Year In Alleghany County And $2.00 Per Year Outside Alleghany County Due to the increased cost of production during the past two or three years, when you have been obliged to pay more for your groceries, clothing and many other items, we have continued to send you The Alleghany News at the original low subscription price which we started out with in 1939. Due to our increased costs we now find that we must either increase our subscription rates slightly or decrease the quality of your county paper. We want to keep THE ALLEGHANY NEWS the best small non-daily | paper in North Carolina and are therefore slightly raising our rates on JulyWL5. • We also call your attention that newsprint is rationed and faces further curtailment in the future. For this reason it is important that you keep your subscription renewed in order that we may be able to continue to send yon the paper. The new rates will be only the average that are charged by papers of dmilii- tim in North Carolina and Virginia. Renew Your Subscription Today Before Our New Rates Become Effective The Alleghany WL <* “Winner of The 1»42 Trophy for Being The Best Small Non-Daily Newspaper in tke State”
The Alleghany News and Star-Times (Sparta, N.C.)
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June 17, 1943, edition 1
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