The times. [volume] (Richmond, Va.) 1890-1903, 1894-05-05
INC0ME-TAX AMENDED.
THOSE FROM THE FINISCE COM
MiTTEE SUBMITTED BY YEsT.
An Armistice Agreed Upon In the Senate by
Which tho Tariff Debate will be Con-
tinued Until Tuesday Next.

therefor: That there shall be levied and
collected a tax Of two per cent. per
annum on the net profits or income above
ordinary working or operating eX
penses of all banks, banking in
stitutions. trust companies, saving
institutions, fire, marine, life and
other insurance companies. railroad,
canal, turnpike, navigation, slack water,
telephone. telegraph. express, electric
light, gas, water, street railway companies,
and all other corporations. companies, or
associations doing business FOR profit, IN
the United States, no matter how created
and organized.
"That said tax shall be paid on or be-
fore the lst day Of July in each year,
and the president or other chief officer
Of any corporation, company, or assocIa-
ton, who shall neglect or refuse 10 file
with the Collector OF Internal Revenue of
the district in which said corporation.
company, or association shall be located
or engaged in business statement
verified by his oath and affirmation show
ing the amount Of net profits or income
received by said corporation, company, or
association, during the whole calendar
year preceding the date Of fling said
statement as hereinafter required, the
corporation. company. or association max
ing default shah forfeit as a penalty the
sum of 1900 and ten per cent. OF the
amount OF taxes due for each month un-
I'll the same is paid the payment Of said
pehalty TO be enforced as provided I'm
other cases of neglect and refusal to pay
penalties and taxes under the internal
revenue laws"
CHARITABLE INSTITUTIONS EXEMPTED.
1.-THE net profits or Income Of all cor
porations companies or associations shall
include the amounts paid to shareholders
and bondholders or holders of certificates
Of Indebtedness Of any kind. or carried to
the account of fund, or used for eonstruc-
ton, enlargement Of plant, or any other
expenditure or investment representing
the net profits made or acquired by said
corporations, companies, or associations.
"That nothing herein contained shall
apply to States, counties or municipal
tiles, nor 20 corporations. companies. or
associations on and conducted solely
for charitable, religious. or educational
purpose; nor TO the stocks. shares, funds,
or securities held by any fiduciary or trus-
tee for charitable, religious. or educational
purpose, nor to ouch building and loan
associations as are oIganized under the
laws of any State or Territory. or the
District Of Columbia, which make loans
only to their shareholders 10 enable them
to provide for themselves homes" 3,
sTRINazNCY OF THE LAW LEssISED.
There are twenty-three additional
amendments, designed TO remove certain
Objectionable features and lessen the
stringency OF the law. Where penalty
is attached in the case one renders "a
fraudulent return the language has been
changed so as 10 read, a wifully false
or fraudulent" return. In case Of fail
ure or refusal TO make return the col
lector is directed 10 make the list by the
examination Of the person, etc, the
words. by the examination Of his books
or accounts" being stricken out In many
places throughout the income-taX fea-
ture the present wording relates TO the
acts Of any person" and other places
the word corporation" alone is used
Those have been amended 50 as 10 in
cludc companies and associations.
At the end of section 62, which regulates
the payment OF the tax by persons
drawing salaries in excess Of 1900 there
has been added the following provisions
provided, that salaries due 10 State
county, or municipal officers shall be
exempt from the income tax herein mei.-
toned" The section Of the revised sta
tutes GID, which reads: THAT the col
lector or any deputy collector in any
district shall enter into and upon the
premises. If it be necessary. Of any
person therein, who has taxable property
and who rfuses or neglects 10 make any
return, etc." has been amended so as to
read: THAT when any person. corpora
tion, company, or association refuses"
the collector or his deputy may make
out the return. the authority to enter
upon the premises being stricken out.
The limit Of time Of which the tax
shall be in operation is fixed from jan
uary l, 1895, TO January J. 1900.
ESTIMATING INCOMES.
At the end Of section IS. which relates
to the method Of computing and estimat-
ing incomes, there has been added the
following.
Provided, also, that in computing the
income Of any persons, corporation. com
pany, or association, there shall be incud-
ed the amount received from any cor
poration, company, or association. as
interest or dividends upon the bonds or
stock Of such corporation. company, or
association, If the tax of per cent. has
been paid upon its net profits by said
corporation, company or association "a
required by this act"
From section So which describes what
shall be taxable. the following clause has
been expunged; And the share of any
person in the gains or profits Of all
companies, whether incorporated or part
nership. who would be entitled to the
same IL divided, whether divided or
otherwise, except the amount Of income
received from institutions or corporations
whose officers. as required by law. with
hold a percentum of the dividends, in
terest, gains, profits, and income made
by such institutions or corporations. and
pay the same to the officer authorized
TO receive the same.
nuAY RHaUMRa HIS aPKEnH