THE

FEDERAL INCOME TAX LAW

The following is a general summary of the important provisions of the Federal Income Tax Law. It is not intended to cover all of its provisions, and as there are numerous controversial points in the Act many of the statements made are expressions of opinion, which may later be modified by the Treasury regulations and the decisions of the Courts. The full text of the law follows the summary.

THE TAX IN GENERAL

The Federal Income Tax is composed of the so-called normal tax, namely, 1%, and the additional or super tax, which is a progressive addition of percentage based upon increase of income, as shown by the schedule given below.

In general, corporations and associations pay Normal Tax the normal tax only. Individuals pay the normal tax of 1% upon net income in excess of $3,000 ($4,000 if married, but only one deduction of $4,000 from aggregate income of husband and