The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-04-25
The Internal Revenue Law.

Richmond Dispatch gives the following
synopsis of the report of the Ways and
Means Committee, involving material
changes in the laws for raising revenue
We have no idea that such changes will meet
the approval of the Senate, even should the
House adopt them, nor that the President
will give his sanction to legislation so harm
full to the agricultural interests of the coun-
try. The Democrats have certainly mad G
great mistake in this report, and if the
House should ratify it, it will crystalize
opposition, so as to materially change the
complexion of parties in the next Congress
The correspondent says:
ssThe people who have not large incomes
will be delighted to hear that the Ways
and Means Committee this morning COM
pleted the consideration of the internal rev.
enue bill, and agreed to report it with a
resolution that the House make it the order
of the day for May LIST. The income tax
was materially amended, but had prepar-
ed the readers of these dispatches for the
changes which were made.
The bill makes the tax on all chewing
and smoking tobacco, including fine-cut,
and on snuff, 16 cents per pound. The ia x
on tobacco is now "a cents, and on snuff
80 cents. On cigars it makes the So per
1000 instead Of $6, and on cigarettes 81 .25
per 1000 instead of $1.75, unless they weigh
over 81 pounds to the 1000, when they are
to be taxed as cigars.
The tax on the gains, profits, and income
of every person residing in the United
States, and of every citizen Of the United
States residing abroad, derived from any
source whatever, and OF every person re-
siding within the United States and not a
citizen thereof, or from rents of real estate
within the United States owned by any
person residing without the United States
and not a citizen thereof, two per cent. on
all amounts in excess of $4,000. The bill,
| in estimating what are incomes under the
bill, is very sweeping, and includes the
salaries of members OF Congress and mill
tary and naval officers, the interest on Gov
eminent bonds, and all products of farms
except such as are directly consumed by
the family.
! The exemptions are the rental value of
| the homestead owned or used by any per-
son or his family, military or naval PEN
sions, premiums on insurance for life or
property, all taxes paid within the year, all
losses BY fires, &C., bad debts in trade,
amount of interest paid, amount paid for
rent or labor to cultivate land or to conduct
any other business from which income is
derived, the amount paid for rent Of resi-
dence for self or family, and amount paid
for usual and ordinary repairs the sala-
ries of the President and United States
judges and State officers, whether legisla-
tive, judicial, or executive.
The machinery for assessing and collect
ing the tax is very complete, and the PEN
alties ample. The bill provides chat the tax
for 1878 should commence OF the Ist of Ju-
ly Of this year, and not date back to the lst
of January, 1878, that only half-year's
tax will have to be paid if the bill becomes
law in 1878.
II any person makes fraudulent return
Of his income tax he may be indicted in any
court Of the United States having local ju-
risdiction, and on conviction be fined not
less than $1,000 nor more than $4,000,
imprisoned not less than one nor more than
ten years, or both, at the discretion of the
court.
The bill provides that the deposits in
savings banks shall be exempt from the
taxation imposed on bank deposits unless
the amount deposited by one individual firm
or corporation exceeds $4,000. 1t is also
provided that no bank or banker shall be
liable to said tax upon any sum under the
name of deposits which shall appear to be
deposited with any other bank or banker,
and which is subject to tax as deposits with
such last named bank or banker.