Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-04-22

| during the year arising from
fires, foods, shipwrecks or incurred in
trade aud debts ascertained to be worthless,
but excluding all estimated depreciation Of
values, the amount of interest paid dur
ing the year and the amount paid for
labor to cultivate land, OF to conduct any other
business from which income 10 derived: the
amount paid for rent of house on premises
occupied as residence for himself or his fam
1ly, and the amount paid out for the usual and
ordinary repairs.
No deduction shall be made for any amount
paid out for new building, permanent im-
provementa or betterments made to increase
tho value OF any property or estate.
The salaries of the President of the United
btates. and all judges of the United States, and
OF all officers, executive judicial and legisla-
tive, of any State of the Union, shall also be
deducted from the gains, profits and income of
any person and be exempt from said tax.
And consuls of foreign governments who are
not citizens of the United States shall be ex-
empt from any income tax imposed bv this act
which may be derived from their official emolu-
ments and from property in foreign countries;
provided that governments which such consuls
may represent shall extend similar exemptions
to consuls of the United States. That the tax
herein provided, shall be assessed upon the
gains, profits and income for half the year end
ing the 3lst of December, 1878, and Of each
succeeding year, and shall be assessed and
levied in 1879, and each succeeding year as
hereinbefore provided, and shall after assess
ment, be due and payable upon notice and
demand, made as provided by section 3,184
revised statutes.
If any person signing and making return in
regard to said tax shall Intentionally and fraud
ulently sign and make false return, he may
be indicted and convicted in any court of the
United States having local jurisdiction, and
shall upon conviction be subject to fine of
not less than $1,000 nor more than 3d. 900, and
be imprisoned not less than one year nor more
than ten years, or both, at the discretion of the
court.
There shall be levied and collected for and
during 1878 and annually thereafter, q tax of 2
per ceatum on the amount of all interest or
coupons paid on bonds or other evidences of
debt, issued and payable in one or more years
after date, by any Of the corporations in this
section hereinafter enumerated, and on the
amount of all dividends Of earnings,
income or gains hereinafter : declared
by any bank, trust company
savings institution, insurance company, rail
road company, canal company, turnpike COM
pany, canal navigation company, and slack
water company, wherever and whenever the
same shall be payable, and to whatsoever per-
son the same may be due, including non resi-
dents. whether citizens aliens, or all undi-
vided profits of any such corporation which
have accepted and been earned and added to
fund, and every such corporation
having. paid tax as aforesaid, is hereby
authorized to deduct and withhold from any
payment on account of interest coupons and
dividend, an amount equal to a tax of per
cent. on the same and payment to the United
States as provided by law, Of the amount of
tax so deducted from the interest coupons and
dividends aforesaid shall discharge the corpora
ton from any liability for the amount of said
interest coupons or dividends claimed as
due to any person, except in cases where said
corporations have provided otherwise by ex-
press contract; provided, that the tax upon
dividends of insurance companies shall not be
deemed due until such dividends are payable
either in money otherwise; and that the
money returned by mutual insurance COM
panies to their policy holders, and annual
or seml-annual interest allowed or paid to
depositors in savings banks or savings institu-
tions, shall not be considered as dividends, and
that when any dividend is made or interest as
aforesaid is paid, which includes any part of
the surplus or contingent fund of any corpora
tion which has been assessed and the tax paid
| thereon, or which includes and part Of
the dividends, interest coupons received
from other corporations whose officers are ar-
| same, the amount of tax paid On that por-
tion of the surplus OF contingent fund; and the
amount of tax which has been withheld and
paid on dividends, interest or coupons SO re-
ceived, may be deducted from the tax on such
dividend or interest.
Section amends section 3SO3 Of the revised
statutes by adding ut the end of the first clause
in the 88th line, the words following:
Provided, however, no bank or banker shall
be liable to said tnx upon any sum under the
name of deposits, which shall appear to be de-
posted with amy other bank or bankers and
which is subject to tax as deposits with such
last named bank OF banker !; and provided
| further, that no fund belonging to any
State which shall be on deposit in any bank OF
banking institution, shall be liable to taxation
| by the government of the United States; MOI
| shall any such bank or banking institution
holding such funds on deposit to the credit OF
any State be required to pay tax on the same a.
| deposits, or in any other manner whatever
and strike out all of said section after the 3OSth
line and insert the following:
The deposits in associations or companies
| known as provident institutions, savings banks
savings funds or savings institutions. recog
| mixed as such by tho laws of their respective
States, shall be exempt from tax on all de.
| posts and on 80 much of their deposits as they
have invested in securities of the Uniteu
| States, except that where any deposits to
creditor in the name of any one shall exceed
$4,000; above that amount shall be liable to tax