Iowa voter. [volume] (Knoxville, Iowa) 1867-1874, 1870-12-15

due, including non residents, whether citi-
zelD or aliens. It is believed to have been
the intention to continue the 8 per cent
tar until August 1, 1870, and to substitute
. tax Of 21a per cent. therefor on and after
that date, but, owing to the peculiar Ian
gage OF the statute, no tax can be with
held from coupons falling due during the
laA nve calendar months Of 1870. Accord
ing TO- q recent decision of the Circuit
Ceurt in the State of Pennsylvania, no tax
can be withheld from dividends, coupons,
or interest payable during the first seven
mpth of 1870, and it is further main
tanned that corporations cannot be required
to lay any taxes upon the dividends paya-
able during the remaining five months.
The right to withhold tax from the
salaries of persons in the civil, military or
naval service Of the United States during
the first seven months of 1870, turns also
upon the points involved in the case
above-named. The amount of tax indi-
rectly involved in this question is very lit
tie less than six millions of dollars. 1t is
of such importance that l have not felt at
liberty to acQuiesce in the decision of the
Circuit Court until it shall be affirmed by
the court of last resort. Steps have been
taken, therefore, to have the opinion ofthe
Supreme Court of the United States pro-
nounced upon the O.. <stion at issue therein.
l deem 1t proper to state hat as early as
January 4, 1870, called the attention of
Congress, through its appropriate commit-
tee, to the antiquities Of the law then in
force, and the difficulties likely to arise in
the collection Of these taxes, and asked for
legislation upon the subject. This request
was repeated Feb. 8, April Z and 25, and
May rs following, and was repeated orally
and in person at several other times. The
legislation was finally enacted July IA, but
has been declared by the Circuit Court of
Pennsylvania to have been too late to
serve the purpose desired. 1t is provided
in section Is that when any dividend is
made or interest paid which includes any
part OF the surplus or contingent fund of
any corporation which has been assessed
and the tax paid thereon, or which in
cludes any part of the dividends, interest,
or coupons received from other corpora
tons, whose officers are authorized by
law to withhold per centum on the same,
the amount Of tax so paid on that portion
of the surplus or contingent fund, and the
amount of tax which has been withheld,
and paid on dividends, interest, or coupons
so received, may be deducted from the tax
on such dividends or interest. Owing to
a change in the rate of taxation from per
cent. to 21a per cent, taxes properly paid
upon surplus prior to August / may now
be again appropriated TO the payment of
taxes upon earnings since that date, so that
in some cases these later earnings escape
valuation entirely. 1t would have resulted
differently if the law had provided for a
deduction of tax from tax.
BY my direction, the collection of taxes
on shipbuilders, assessed under the fourth
section of the act of March 81, 1868, was
ordered to be suspended. would recon-
mend that Congress provide for the remis,
sion of all such taxes assessed but not col
lected on the sales of ship-builders.
BY act of Congress, approved August 5,
1861, a direct tax of twenty millions per
annum was apportioned to all of the then
existing States and Territories and the Dis
trict of Columbia. This act provided
that each State, Territory, and the District
of Columbia, might pay its own quota, If
notice of the intention thereof should be
given on or before the second
Tuesday of February next thereafter.
Under this provision of law all the States,
Territories, and the District of Columbia,
assumed the payment Of the tax,
except Delaware, the Territory of Colora-
do and the eleven insurrectionary- States.
Provisions were made for tho COLLECTIONS
TO be made In Delaware and Colorado by
internal revenue officers, and in the eleven
States by the appointment
of United States direct tax Commission
ers under an act of Congress approved
June Z, 1862.
BY act of Congress approved July l.,
1869, the operations of the act of Aug. 8,
1861, were suspended until April /, 1865,
except 80 far as related to the collection of
the first annual tax Of $20,O00000, and by
act of June 30, 1864, it was further sus-
pended until additional legislation by Con-
gress was had. The following States and
Territories appear to have satisfied their
quotas in full: Maine, New Hampshire,
Vermont, Massachusetts,, Rhode Island,
Connecticut, New Jersey, Pennsylvania,
MARYLAND, West Virginia, Ohio Kentucky,
Indiana, Illinois, Missouri, Michigan, Iowa,
Minnesota, Nevada, Nebraska, New Mex
leo, Dakota and the District of Columbia
Against New York, Wisconsin, Kansas,
California, Delaware, Colorado, and Wash
ington Territory, there are balances unsat'
isfied amounting to about $1,312,0O0. Ore
gon and Utah have paid no part OF theil
quotas.
The seizure by internal revenue officers
of property for frauds practiced in viola
ton of law, and the evasion OF tax, fol
the year ending June 30, 1870, were as fol
lows:
.75 gallons distilled spirits,
valued At '.,.'.....,...,'. -. G9,e47 q
"a 142 50 pounds snuff valued at. 5,GtS u
at 2S4 OH IL
1000 S05 cigars, valued at .......... 1lO,236 AZ
Miscellaneous property, valued at... l'SSo'9lf IL
Total value OF seizures. .......... $3,395,S7l y
On the subject of seizure and disposition
of property for violation of the revenue
laws, Mr.. Delano suggests that the act o.
July IL, 1866, be so amended as to make
its provisions applicable toproperty forfeit
ed under any OF the internal revenue laws
The limit in the value of the property
seized should be extended from $500 To
$500, and the expenses of seizure and GUS
tody should be provided for as well q
those of appraisement and sale.
The following is an estimate of the an
nual receipts in each State and Territory
from internal taxation after the act OF July
IA. 1870, shall be in full force:
ctoto .nd Ter State and Ter