Fisherman & farmer. [volume] (Edenton, N.C.) 1887-19??, 1894-08-24
INCOME TAX FEATURES.
PROVISIONS OF THIS PART OF
THE TARIFF BILL.
Two Per Cent. Tax on All Incomes
Exceeding $4,000 - Who viii
Have to Pay ana Who VIII BE FIX
empt-SpecIal Exemption for Far
mRrs-Ihn ('nrnnrntinr,


Have to Pay and Who VIII BE Ex-
empt-Special Exemption for Far
mers-The Corporation Tax.
As explained by the New York Herald. thH
income tax addition to the new Tariff bln
provides that from ana after January /,
1895, and until January /. 1919, every "iti-
zen OF the Unitel States, whether residing
at homo or abroad. AMI every person not q
citizen resiliny in the United States. who
has an income in excess of $4,000 per wear
shall paya tax OF two per cent on all his in
come in excess OF $4,000. All those who
have incomes of not moro than $1,000 wll
escape this taxation, unless part of NIL tho
incomes are derived from investments in the
stocks of corporations from tho dividends OF
which the tax will be dedUctei hoforc they
are paid. The taxed class will consist ot all
those whose incomes are moro than $1,000
with few exception which will be noted
In some quarters there is soma question rs
to what is meant 10y the $4,000 exemption
the idea prevails that Il man with au income
Of more than $1,000 would be taxed on his
total income. This is not fact Ii Is only
the excess of $1,000 that will be taxed. For
instance, u man having an income OF 5000
will not pay tax upon the whole 5000, but
only upon the $1,000 in excess OF $1,000. Tho
only persons who are exempted from tho
counties AMI municipalities, the salaries
which they receive not boing included in c.
timatng their incomes for the purpose OF
taxation. The Governor of the State of New
York, who receives a salary of $40, 900 AMI
who resides in a mansion provide by tn"
State, will not be taxed u cent on his salary,
but the bank cashier or husiness man, whose
income is in excess of $4,000 a year and who
must provide his own home. will pay twp
per cent. of all his income moro than Ci)))
into the Treasury ofthe United States.
The directions in the bill for estimating
individual incomes are very minute. and arr
made to cover the incomes from every con
ceiVahlc source, except the interest on hon Is
OF the United States. tho principal ah / inter
est Of which are by the law Of their isSuluc"
exempt from all Federal taxation. There is
one exemption which relieves the farmer
from Including in his income the value OF his
farm products consumed by his family.
In estimating incomes, all personal prop
erty, acquired by gift or inheritance, is to be
included as are the profits realized within
the year from sales Of real estate, purchased
within two years previous to the close of tho
year for which the income is estimated. In
estimating incomes, the net expenses Of car
rying on any business or profession are to
be deducted. These expenses are to includ"
interest, taxes, losses OF all kinds, not com
pensatGd for by insurance or otherwise. AM
bad debts, but no deductions is to bc made on
account of permanent improvements or bot
terments made to increase The value Of prop.
Crty.
AS the two per cent tax leviod on the in
comes Of corporations is to be paid 10y the
corporations. In estimating inlivI lual in
comes all receipts from such sources arc -
be deducted.
While no one having IN income Of less than
$4,000 will be taxed, the law will compel
every person having an income Of more than
fCY olyon of1 Of htd innnrnn n
Collector of Internal Revenue in his district
and If any person having a taxable income
neglects or refuses to make n return for such
income, or makes n wilfully fraudulent re
turn, the Collector Of Internal Revenue for
his district is to make out a return accord
ing to the best Information he can obtain by
the examination of such person, or from any
other evidence, and add fifty per cent. as
penalty to the amount he thinks to be due.
In the bill rs 1t passed the House the in
ternal revenue collectors had power to cX-
anime private books aud accounts, but that
feature was stricken out in the Senate. Tho
taxes on incomes are to be payable on or be
fore July Of each year forthe calendar year
preceding, with a penalty Of five per cent.
and interest at the rate of one per cent. per
month upon such tax for failure to pay on
the date prescribed. The provisions in re-
gard to the taxations of the profits or in
comes of corporations are very lengthy and
tions and as to methO Is of making returns
are rs nearly as possible the same rs those
relating to the incomes Of individuals.
TIE bill exempts the incomes Of States,
counties, municipalities OF organizations
conducted solely tor charitable, religious OF
educational purposes, including fraternal
beneficiary societies operating upon the
lodge system AMI providing for the payment
of life, sick, accident and other benefits TO
thoir members of funds and securities held
by trustees for charitable, rcltb .Ous or
educational purposes, or building and loan
associations which make lOlns TO their
stockholders only of savings banks and III
stftutions which have no shareholders or
members except depositOrs and no capital
except deposits, which do not receive de-
posits to an aggregate Of more than SlOOO III
ono year from the same depositor, which DO
not allow an accumulation OF deposits ny
any ono depostOr exceeding 80, 900, m
which divide ratnble TO deposits nj! the net
earnings, and which do not possess a surplus
exceeding ten per cent. of their aggregate
deposits.
Tho bill also eXempts the incomes OF saw
ings banks and institutions cOmpO3ci OF
members who do not participate i'll tho
profits, and which pay interest or dividends
only to their depositors. and also such paris
Of the business Of any savings bank or in
stitution that is con iuctcd on th3 mutual
plan solely for the benefit of its dcpOsitOrs
on such plan, and which shall keep scPL
rate account of such business.
The incomes Of purely mutual insurance
companies having no capital stock and M
shareholders are also exempted.