Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-04-21

income is estimated.
The amount of sales of live stock, sugar,
wool, butter, cheese, pork, beef, mutton, or
other meats, hay and gram. fruits, vegetable or
other productions, being the growth or product
OF the estate Of such person, but not including
any part thereof consumed by the family, and
all other gains, profts'and income drawn from
any source whatever, but not including the
rental value of the homestead owned and used
or occupied by any person, or by his family,
provided no gift, device or property acquired
by inheritance, distribution or succession shall
be accounted as gains, profits or income under
this section,
The military or naval pensions allowed to any
person under laws of United States and the sum
OF S2,OOO OF the gains, profits and income of
any person who shall be exempt from said in
come tax in the manner hereinafter provided.
Only deduction of $4,000 shall be made
from the aggregate income of all members of
any family composed Of one or both parents,
and one or more minor children, or of the hus-
band and wife; but where the wife has by law
a separate income beyond the control
of her husband, and is living separate
shall then be made from her
income, gains and profits. and guardians and
trustees shall be allowed to make deductions
in favor of each ward, or beneficiary, except
that in case of two wards or benefci-
aries comprised in one family having joint
made in their favor.
For the purpose of allowing said deduction
from the income of any religious or social COM
munity holding all their property and income
therefrom, jointly and in common, each FIVE of
the persons comprising such society, and any
remaining fractional number of such persons,
less than fveo such groups Of five, shall be
held to constitute family, and deduction of
$4,000 shall be allowed for each of said fami-
lies.
In addition to those exemptions there shall be
deducted from the gains, profits and reve-
nues OF any personal premiums or insurance of
life or property, and all national, State, coun-
ty and municipal tax paid by him within the
year, whether such person be the owner, tenant
or MORTGAGE, all his losses actually sustained
during the year arising from
fires, floods, shipwrecks or incurred in
trade and 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, or to conduct any other
business from which income is derived; the
amount paid for rent of house on premises
occupied as residence for himself or his fam
lily, 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 i'm
provements or betterments made to increase
| the value of any property or estate.
The salaries of the President Of the United
States, and all judges Of the United States and
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;
| nrOvi6a1 that nov norfa UT ich 1c
may repreSS ent Shall extend similar exemptions
to consulslRfa the United States. That the tax
herein pro1efl 4, shall be assessed upon the
gains, profits and income for half the year end
ing the 3lxt of December, 1873, and of each
succeeding year, and shall be assessed and
levied in 1870, and each succeeding year, as
hereinbefere provided and shall after assess.
ment, be que 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 a false return he may
be indicted and convicted in any court Of the
United States having local jurisdiction, anC
! shall upo4conyiction be subject to fine Of
not less than 81, 900 nor more than $40, 0OO anC
be imprisoned not less than one year nor more
than ten Gears, Or both at the discretion of the
court.
| There shall be levied and collected for anc
during 1878 and annually thereafter, tax of :
per centu b on the amount of all interest o.
coupons hid on bonds or other evidences Of
debt, issued and payable in one or more years
after datG by any Of the corporations in this
section hdreipafter enumerated, and on the
amount fofs. all dividends Of earnings
/ income pr gains hereinafter declared
by al " bank, trust con,pan,
savings ibstAution, insurance company, rail
road company, canal company, turnpike com
pany, carM navigation company, and slack
water cobpany, wherever and whenever thu
same shall ba payable, and to whatsoever per
dents, neither citizens or aliens, or all undi
4 vided profits of any such corporation which
have ACCEPTED and been earned and added tt
any surplus, contingent, or othel
fund, and every such corporation
having paid tax as aforesaid, is hereby
authorized to deduct and withhold from an,
payment OF account Of interest coupons and
dividend, an amount equal to tax Of 2 per
cent. on the same and payment to the United
! States as provided by law, of the amount O.
/ tax SO deducted from the interest coupons anc
!! dividends aforesaid shall discharge the corpora
ton fronliany liability for the amount of sale
interest coupons or dividends claimed al
due to any person. except in cases where sale
corporations have provided otherwise by ex
press contract; provided, that the tax upo1
dividends of insurance companies shall not b.
deemed due until such dividends are payab
either in money or otherwise; and that tn
money returned by mutual insurance com
panies to their policy holders, and annua
or semi-annual interest allowed or paid t,
4 depositols in savings banks or savings institu
tions, shall not be considered as dividends. ant
that when any dividend is made or interest al
aforesaid is paid, which includes any part o
the surplus or contingent fund of any corpora
tion which has been assessed and the tax paiC
thereon, Eor which includes and part Of
the dividends, interest or coupons received
from other corporations whose officers are au
thorized by law to withhold per cent. on tn
same, heamount of tax paid ON that por
ton of the surplus or contingent fund; and tn
amount Of tax which has been withheld an,
paid on dividends, interest coupons so re
ceived, may be deducted from the tax on suc
dividend or interest.
Sections amends section 3,S08 of the revise,
J statutes by adding at the end of the first claus
in the 88th line, the words following:
Provided, however, no bank or banker sha]
) be liable to said tax upon any sum under tn
name of deposits, which shall appear to be de
posted with any other bank or bankers, an,
which is subject to tax as deposits with sue
last named bank or banker and provided
) further. that no fund belonging to an,
State which shall be on deposit in any bank o
banking institution, shall be liable to taxation
by the government of the United States; no
shall any such bank banking institution
} holding such funds on deposit to the credit o
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 308t
j, line and insert the following:
!, The deposits in associations or companie
known as provident institutions, savings banks
savings funds or savings institutions, recoe
. nizefl "A such by the laws of their resnectiy