Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-01-28
INTERNAL TAX LAW,
TIE Sections Rspsslsd by the Sen
ate Bill Passed on Thursday.
10 more Income Tax nor Tax On
Dividends Of BaRks, Insurance
and other Corporations,

Law az il Llllost4 INC oGLtleS OA AAllAAo
day:
81 bill TO repeal so much Of an sc
approved JUly.l4, 1870, entitled "aI
act 70 reduce internal taxes and fOl
other uurpuses,n - as continues the in
come tax after December 81, 1869. B,
it enacted, etc, That sections 6, :, s
9. 10, IL, II, l3, II, 10 and Is Of an ac
entitled ''an act 10 reduce iGterna
taxes and for other purposes" ap
proved July IA, 1870, be and they ar,
hereby repealed.
For the convenience Of the mer
chants Of Memphis, we publish th,
sections thus reported repealed, pre-
missing that it is more than likely tina
the House Of Representatives vii
sustain the Senate. They are as fol
lows:
Sec. G. Ind Be Il further enacted
That there shall be levied and collect.
ed annually, as hereinafter provided
for the years eighteen hundred and
seventy and eighteen hundred and
seventy-One, and no longer, a tax OF
two and one half per centum upon
the gains, profits and income Of every
person residing in the United States,
aud of every citizen Of the United
States residing abroad, derived from
any source whatever, whether within
or without the United States, except
"a hereafter provided, and a like tax
annually upon the gains, profits and
income derived from any business,
trade, or profession carried on in the
United States by any person residing
without the United States, and not a
citizen Thereof, OF from rents of real
estate within the United States owned
by any person without the United
States, and not q citizen thereof
See. O.. ind De Il further enacted,
That I'm estimating the gains, profits
and income of any person, there shall
De included all income derived from
any kind Of property, rents, interest
received or accrued upon all notes,
bonds and mortgages, or other forms
OF Indebtedness bearing interest,
whether paid OF not, if good and col
leHtable, interest upon notes, bonds,
OrOther securities Of the United States I;
and the amount Of all premium on
gold and coupons; the gains, profits
and income Of any business, pr0fes-
ca.
sion, trade, employment, office or
vocation including any amount re
C-ived as salary or pay for services in
the civil, military, naval OF other
service of the United States, or as
Senator, Representative or delegate
iu Congress except that portion
thereof from which, under author
ity of acts OF Congress previous
hereto g tax OF five per centum
shall have been withheld; the share
Oiauy person Of the gains and profits,
whether divided or not, OF ali COM
plnies OF partnerships, but not in
CludinE the amount received from
any corporations whose officers, as
authorized by law, withhold and pay
ss taxes per csntUm Of the divi.
q ruds made, ana OF interest or cOu-
pJls paid by such corporations; prot
its realized within the year from sales
OF real estate purchased within two
years previous 20 the year for which
income is estimated; the amount Of
81 80 of live stock. sugar. wool, butter,
cheese, pork, beef, mutton, or other
meats, hay and grain, fruits and vege-
tables, or other productions, being the
growth OF produce Of the estate OF
such person, but not including any
part thereof consumed directly by the
family; and all other gains, profits,
and income drawn from any source
" Waatever, but not including the rental
value OF the homestead used or OCCu-
pI d by any person OF by his family.
Sec. S. And Be Il further enacted,
That military or naval pensions al
Lowell to any person under the laws Of
the United States, and the sum of two
thousand dollars OF the gains, profits,
and income Of any person, shall be
exempt from said income tax, in the
manner hereinafter provided. Only
one deduction OF two thousand dollars
shall be made the aggregate income
Of all the members Of any family COM
posed of one or both parets and one
or more minor children, or Of hus-
band and wife; but when a wife has
bv law d separate income, beyond the
control Of her husband. and is living
separate and apart from him, such
deduction shall then be made from
her income, gains and profits; aud
guardians ana trustees shall be al
lowed % make the deduction in favor
of each ward or beneficiary except
that in case of two or more wards or
benehcisries comprised in one family,
having Joint property interest, only
one deduction shall be made in their
favor. For the parpOse Of allowing
such deduction from the income of
any religious or social community
holding an their property and the in
come therefTOm i8inuy and in COM
mon. each five Of the persons COM
posing such society, and any remain /
ing fractional number of such persons
less than i've over such groups Of FIVE,
shall be held TO constitute a family,
and a deduction Of two thousand dol
lars shall be allowed for each of said
families. ANY taxes on the incomes,
gains and profits Of such societies,
now due and unpaid, shall be assessed
and collected according to this pro-
vision, except that the deduction shall
be only one thousand dollars for any
gear prior to eighteen hundred and
seventy.
Sec. 8. Aud Be e further enacted, |
That in addition to the exemption |
provided I'm the preceding section, |
there shall be deducted from the gains, /
profits and income Of any person all
national, State, county, aud munich
pal taxes paid by him within the year,
whether such person be owner, tenant,
or mOrtgsger; all his losses actually
sustained during the year arising from
nres, floods, shipWreCk, or incurred
In trade. aud debts ascertained to be
worthless, bat excluding all estimated
GepreciatlOn Of values the amount Of
fntsoest paid during the year, and the
sDoupt paid for rent or labor to Cul-
tivate land, or 10 conduct any other
business from which income Is de-
rived the amount paid for the rent
Of the houses OF premises occupied as
a residence for himself and family,
and the amount paid out for usual and
ordinary rapairs. No deduti0n shall /
be made for any amount paid out for /
new buildings, permanent improve |
meuts. or betterments made TO in 1
crease the value Of any property or |
estate.
Sc. DO. An1B BE- z further enacted, That /
the tax hereinbGfOre provided shall /
be assessed upon the galnss, profits, /
and income for the year ending on the
thirty-drst day Of December next /
preceding the time for levying aud /
collecting said tax, and shall be lev /
Jed on the first day OfMaTch, eighteen /
hundred aud seYenty-One and /
eighteen hundred and seventy /
t9O, and be due and payable /
on or before the thirtieth day of |
April in each of said years. And In
addition TO any sum annually due
and upDaid after the thirtieth day Of 4
ADril. and for ten days after notice 4
and demand thereof By the collector, !
there shall be levied and collected, as
q penalty, the sum Of five per eentum
on the amount unpaid, and interest |
90, s4.s.I .-..-- ---., q a fha rate of ona ror \