White Deer Review (White Deer, Tex.), Vol. 20, No. 24, Ed. 1 Friday, August 20, 1943 Page: 3 of 4
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.WHITE DEER REVIEW, White D«er, Carson County, Texas
FRIDAY, AUGUST 20, 1943
T
T
Fheir All
TO: Every American on a Payroll
FROM: The Secretary of the Treasury
S UBJECT! The New Pay-As-You-Go Method
of Collecting Your Income Tax
__* Income and Victory Tax will be col-
lected by an entirely new and more convenient method.
Under the old system, you were obliged every March 15th to pay
either the full tax for the previous year, or a quarter of that amount.
{ JJnder the new system, you will keep paid up from month to month.
After July 1st, your employer is obliged by the new law to with-
, hold every month a part of your wages and turn the money into the
| United States Treasury as payment on your Income and Victory
| (Tax.
i Of course, the amount that your employer withholds will depend
upon your pay and your exemptions. But this is the important point:
For most of us, the amount withheld over a year's period will add
up to the same that we're paying now—plus or minus a few dollars.
At the end of the year, we may owe the Government a few dollars
or the Government may owe us. (See the tables below.)
You may have heard 20% mentioned as the proportion of your
wages that will be withheld. Actually, this is incorrect. To figure the
amount that will be withheld, take your total wages and subtract
I your allowance for exemptions and allowance for dependents;
r 20% of this lesser amount is the total that will be withheld.
Now please remember this: You must claim those exemptions to
i take advantage of them. Before July 1st, you must file with your
I employer ar Exemption Certificate. If you do not do this, your em-
i ployer will have no choice but to deduct 20% of your full pay check,
r Here is how the new tax collection method will work: Let’s say
j you are a working mar earning $3,000 a year; that you are married,
i and have two children.
dependents), which is deducted from the $3,000 you earn before
your tax is computed. You are thus paying tax on $1,128, of which
your employer will withhold 20%, or $225.60 for the year. There-
fore, in your pay envelope, after July 1, you will receive about
$4.40 less each week.
In March, 1944, when you ordinarily would be faced with paying
taxes on your 1943 income, you will file a return showing how much
you have already paid, and how much your total tax actually
amounted to. If, by that time, you have already paid more than your
actual tax due, you will be given credit for the difference. If you
owe more than you have paid, you will pay the difference.
Since this plan starts July 1, many wonder what happens to the
tax payments they will already have made by that time—on March
15 and June 15.
For a great majority of people, here is what happens. . . Youi^
1942 income tax is “forgiven” (either all, or most of it). The March
and June installments which you originally paid on that 1942 ' icome
tax are credited, instead, as payments on your 1943 tax. With the
result that on July 1st, with the year half gone, you have already
paid tax on that half-year’s income. In short, you are “paying as
you go.”
There is one thing more. Since this pay-as-you-go method leaves
you just as much of your net income as you had before, you will
probably find it possible to at least maintain your present rate of
buying War Bonds. Do this by all means!
Taxes alone will not bring to the Treasury nearly enough money
to finance the great invasion war that lies ahead. The war needs
First of all, as a married man you are allowed a personal with-
holding exemption of $1,248, plus an exemption of $312 for each
dependent (other than your wife). This makes a total exemption
of $1,872 ($1,248 for yourself and wife, plus $624 for your two
every cent of your money that does not go for the necessities of life.
AMOUNTS WITHHELD FROM WEEKLY WAGES FOR INCOME AND VICTORY TAX UNDER PAY-AS-YOU-GO
TABLE 1 SINGLE PERSON-
NO DEPENDENTS
Weekly
Amount to
be withheld
Withholding
as a percent
Annual total
to be
Annual total
wage
weekly
of wages
withheld
to be paid'
$17.50
$ 1.10
6.3%
$ 57.20
$'73.73'
22.50
2.10
9.3
109.20
126.48
27.50
3.10
11.3
161.20
184.23
262.85
35.00
4.60
13.1
239.20
45.00
- 6.60
14.7
343.20
373.35
55.00
8.60
15.6
447.20
489.85
65.00
10.60
16.3
551.20
613.27
75.00
12.60
16.8
655.20
737.37
85.00
14.60
17.2
759.20
861.48
95.00
16.60
17.5
863.20
991.32
TABLE 3 MARRIED PERSON
— ONE DEPENDENT
Amount to
Withholding
Annual total
Annual total
Weekly
be withheld
as a percent
to be
wage
weekly
of wages
withheld
to be paid
$17.50
$ .20
1.1%
$ 10.40
$ 8.29
22.50
.30
1.3
15.60
15.83
27.50
.50
1.8
26.00
23.37
35.00
1.00 2.9 ---
52,00
55.68
45.00 A.00
- 55.00 5.00
6.7
9.1
156.00 160J6
260.00 — 2<£.84
65JJ0
75700
7.00
10.8
364.00
370.02
9.00
12.0
468.00
478.52
85.00
11.00
12.9
572.00
598.21
95.00
13.00
13.7
676.00
717.89
If the amount withheld during the year is more than your total Income
and Victory tax for the year, the Government will refund the difference.
TABLE 2 MARRIED PERSON
— NO DEPENDENTS
Weekly
Amount to
be withheld
Withholding
as a percent
Annual total
to be
Annual total
wage
weekly
of wages
withheld
to be paid
$17.50
$ .20
. 1.1%
$ 10.40
$ 8.58
22.50
.30
1.3
15.60
16.*38
27.50
.70
2.5
36.40
45.18
35.00
2.20
6.3
114.40
120.88
45.00
" 4.20
9.3
218.40
227.48
55.00
6.20
11.3
322.40
334.08
65.00
8.20
12.6
426.40
439.29
75.00
10.20
13.6
530.40
558.80
85.00
12.20
14.4
634.40
679.00
95.00
14.20
14.9
738.40
799.21
If the amount withheld is less than your total Income and Victory tax
for the year, you will pay the difference to the Government.
TABLE 4 MARRIED PERSON —TWO DEPENDENTS
Amount to
be withheld
Withholding
as a percent
Annual total
to bp
Annual total
wage
weekly
of wages
withheld
to be paid
$17.50
$ .20
1.1%
$ 10.40
$ 8.01
22.50 v
.30
1.3
15.60
15.29
27.50
.50
1.8
26.00
22.57
35.00
.70
2.0
36.40
33.49
45.00
1.80
4.0
93.60
90.05
55.00
3.80
6.9
197.60
195.61
65.00
5.80
8.9
301.60
300.77
75.00
7.80
10.4
405.60
405.27
85.00
9.80
11.5
509.60
517.42
95.00
11.80
12.4
613.60
636.58
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Simmons, W. W. White Deer Review (White Deer, Tex.), Vol. 20, No. 24, Ed. 1 Friday, August 20, 1943, newspaper, August 20, 1943; (https://texashistory.unt.edu/ark:/67531/metapth1159213/m1/3/: accessed June 20, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Carson County Library.