The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1867-04-02
THE INCOME TAX LAW,
IMPORTANT CHANGES.

That section 145 be amended by strik.
ing out all after the enacting clause, and
inserting, in lieu thereof, as folio VS.
That there shall be levied, collected, and
paid annually upon the gains, profits
and income for every person residing ir
the United States, or of any citizen o.
the United States residing abroad whether
derived from any kind Of property, rents
interest, dividends, or salaries, or from
any profession, trade employment, ol
vocation, carried on in the United States
or elsewhere, or from aay other source
whatever, tax of FIVE per cent. on the
amount so derived over 81, 900 aud like
tax shall be levied. collected, and paid
annually upon the gains, profits and in'
come of every business trade or profession
carried on in the United States by per.
sons residing without the United States
and not citizens thereof And the tax
herein provided for shall be assessed,
collected and paid upon the gains, profits
and income for the year ending the 31st
day of December next preceding the time
for levying, collecting and paying said
tax. leait
HOW TO ESTIMATE TAXABLE GAINS-DE
DUCTIoNs TO BE MADE on INCOMES.
That section one hundred aud seven
teen be amended by striking out all after
the enacting clause and inserting in lieu
thereof the following: That, in estiua-
ting the gains, profits and income of any
person. there shall be included allineome
derived from interest upon notes, bonds
and other securities of the United States;
profits realized within the year from
sales of real estate purchased within the
year or within TIVE year previous to the
year for which income is estimated; in
terest received or accrued upon all notes,
bonds or mortgages, or other forms OF
Indebtedness and bearing interest, wheth-
er paid or not, if good and collectable,
less the interest which has become due
from said person during the year; the
smount of all premium on gold and cou-
pons; the amount of sales of live stock,
sugar, wool, butter, cheese, pork, beef
mutton, .or other meats, hay and grain,
or other vegetable or other production,
being the growth or produce Of the estate
Of such person, not including any part
thereof consumed directly by the family;
all other gains, profits and income de-
rived from any source whatever; except
the rental value Of any homested used OF
occupied by any person or Instantly in
his own right or the right Of his wife;
and the share, Of any person Of the gains
and profits Of all companies, whether
incorporated or partnership, who would
be entitled to !he same,if divided, ,wheth
er divided or otherwise, except the amount
of income received from institutions OF
corporations whose officers, as required
by law, withhold per centur of the
divi5ands made by such institutions, and
pay the same to the officer authorized tc
receive the same; and except that portion
of the salary or pay received for services
in the civil, military, naval or other ser
vice of the United States, including
Senators, Representatives aud delegates
in Congress, from which the tax has beer
deducted. And in addition to one thou
sand dollars exempt from income tax, al
hereinbefore provided, all national, State
county and municipal taxes paid withir
the year shall be deducted from the gains
profits or income Of the person who ha
actually paid the same, whether sucl
person be owner, tenant or mortsagor
losses actually sustained during the yea
arising from fires, shipwreck, or i,cur
red in trade and debts ascertained to b.
worthless, but excluding all estimated
depreciation Of values and losses within
| the year on sales of real estate purchas
ed two years previous to the year fo
which income is estimated; the amour
actually paid for labor or interested b,
any person who rents lands or hires labo
to cultivate land, or who conducts any
other business from which income is ac
tually derived; the amount actually pai
by any person for the rent of the hous
or premises occupied as residence fo
himself or his family; the amount pal
out for usual or ordinary repairs: Proul
ded, That no deduction shall be made fol-
any amount paid out for new buildings
permanent improvements, or betterments
made to increase the value of any prop
/ erty or estate: And Provided further
That oEly one deduction of one thousan
dollars shall be made from the aggregat
income of all the members of any tamil
composed of one or both parents aud on
or more minor children, or husband an
wife; that guardians shall be allowed t
make such deduction in favor Of eac
and every ward, except that in case wher
two or more wards are comprised in on
family, and have joint property interes
only one deduction shall be made i
their favor: And Provided further, Tha
in cases where the salary or other com
|pensation paid tosany person in the em
j ployment or service Of the United State
shall not exceed the rate Of $1,00
per annum, or shall be by fees, or un
] certain or irregular in the amount, or i
the time during which the same shal
have accrued or been earned, such salar
or other compensation shall be include
in estimating the annual gains, profits Q
Income of the person to whom the sam
shall have been paid.
HOW THE PEOPLE ARE TO MAKE RETURNS
That section 118 be amended by strik
ing out all after the enacting clause an
inserting, in lieu thereof, the following
That it shall be the duty of all person
of lawful age to make and render a lis
On ,ot,,r -, 80 baPora tho dow nrasor;