Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1893-11-22
Income Tax History.

In view of the general interest being
taken in the new income tax, pro-
posed by the ways and means commit
tee as a feature of the tariff reform bill
to be submitted to Congress when it as
sembles, summary of the history of
the income tax of the United States
prepared by Henry H. Smith, formerly
Journal clerk of the House of Repre-
sentatives, is very apropos just now.
The first act of the establishment of
an income tax, says Mr.. Smith, passed'
Congress in 1861. 1t was during an
extraordinary session." convened by
President Lincoln, that Thaddeus
Stevens, chairman Of the committee of
ways and means Of the House, report
ed bill "to provide increased revenue
from imports to pay interest on the
public debt and for other purposes" In
the debate on substitute for this
bill passed by the House and taken up
by the Senate, an amendment was Of
fered providing for tax on the an
nual income of all citizens derived from
any kind of property or from any pro-
fession, trade or employment.
1t provided that when each annual
income exceeds the sum of 81 900 tax
of 5 per cent. on the amount ofsuch ex-
cess be levied, provided that upon such
portion of such income as is derived
from interest upon treasury notes or
other securities of the United States
there shall be levied tax of only q
per cent. Upon the income, rents or
dividends accruing upon any property,
securities or stocks owned in the
United States by any citizen residing
abroad a tax of u per cent. was
levied, excepting as to that portion de-
rived from interest upon Treasury notes.
1t was further proyided that the tax
should become lien on the property
involved, together with interest on the
same until paid.
The bill was passed by the Senate
with little debate, but in the House it
was amended before passage, so that
the exemption of $1,000 was reduced to
$500, and the tax of per cent. thereon
was reduced to Sper cent. The rate OF
% per cent. on incomes derived from
interest on Treasury notes or other
securities of the United States was re-
duced to / per cent. The rate OF D
per cent. on rents, dividends, securities
or stocks owned in the United States
by anv citizen residing abroad was in
creased from to74 per cent, except
ing that portion derived from interest
on Treasury notes and other securities
of the United States, which were re-
quired to pay but II per cent, and q
proviso was added relating to deduc-
tions of national, State and local taxes
The report was adopted on the same
day by the Senate by yeas 81; nays s.
The income tax in 1864 brought into
the Treasury only little over SD, ,OOO.-
600. Further amendments were added,
so that in 1866 the sum realized by In
come tax was $50, ,547 ,SS2.43. Under
modification of the tax there was col
lected in the year 1868 the large sum OF
S32 .O27 ,6l0.7S: in 1869, $25, ,O23, ,O6S.S6,
and in the fiscal year ended June 80,
1870, 81, lis 5,046.11.
The tax was paid during 1865 by only
go, 900 persons out of the entire popu-
lation of almost 100000, and yet,
the returns of these persons represented
an aggregate income of not less than
$500, ,00O,O 900. The agitation against the
income tax, which led finally to its re-
peal, was perhaps far more owing to the
excess of the rate charged than to any
real objection to the tax itself.
MADE INSANE BY STATUARY.-Frank
Miller, resident of Knox township,
Pa, visited the Worlds fair last sum-
mer, and while passing through the
Liberal Arts building caught sight of
the statue of the Crucifxion Of Christ.
From that time he seemed to lose con-
troll of his mind. All his time at the
fair was spent in front of the statue. 1t
was by most strenuous efforts that he
was finally induced to return home.
Since his arrival he has grown steadily
worse, until to-day his mind is total
wreck and he is dangerous lunatic.
On election day he preached religion in
a wild aud excited manner, and his
theme day and night is Christ's cruci-
fixion. He will be takeu to an asylum,
(; Miller uas nrosperous farmer at one