The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-03-09
INTERNAL REVENUE.
Tax on Whisky, Cigars, Cigarettes
Increnaed-IncOme Tax Changes.

WASHINGTON, March S.-The Senate bill
changes the Wilson bill rates on cigars and
cigarettes The Wilson bill provided that
from and after July /, 1884, there shall be
collected an internal revenue tax on all
cigarettes, wrapped in paper, weighing not
more than three pounds per thousand man.
ufactured for sale offered for sale in the
United States, of 81 per LOCO" This section
is changed in the Senate bill to read as
follows: THAT from and after July 1, 1894,
there shall be collected an internal revenue
tax cigars of all descriptions, including
cigarettes, weighing more than three pounds
per LOCO. made of tobacco or any substitute
therefor. S. per 1000; on cigarettes. wrapped
in paper, weighing not more than three
pounds per 1000. manufactured for sale or
offered for sale in the United States, 81 per
1000; on cigarettes wrapped in tobacco,
weighing less than three pounds per LOCO.
80 cents per 1,C00.'
The income tax retains the rate OF 2 per
cent. on the amount of income over $4,000. as
prescribed by adding to rents. profits. sal
aries. etc. the words cor from any source
whatever" The persons to whom the tax
applies are every citizen of the United
States and every person residing therein"
The Senate bill makes the collectors of in
ternal revenue the officers in charge of the
collection of income taxes, instead of the
deputy collectors, as provided in the Wilson
bill. The right of appeal against imposi-
ton of unjust taxes is retained, but the
final decision rests with the Commissioner
of Internal Revenue. and not with the
Secretary of the Treasury, as provided In
the House bill.
The order in which banks, trusts and in
surance companies are taxed Is somewhat
changed, all of these institutions being In
cIudsd under general headS instead OF sep
arately The following new exception TO the
tax is inserted Provided, that dividends
or interest accruing to States counties or
municipalities, and dividends interest or an
nuities accruing to corporations or associa-
tions organized and conducted solely for
charitable religious or educational pur-
poses or to any trustee other fiduciary
on stocks. shares. funds or securities held
solely for charitable, religious or education
al purposes, or salaries due to State, coun-
ty or municipal officers shall not be subject
to such tax or deduction"
In taxing salaries of employees of corpora
tons the House bill makes it the duty of
the corporations to pay the tax of each
employee and then deduct ii from their sal
aries. The Senate bill relieves corporations
ployes, and compels the latter to make di-
rect payment TO the collectors, as follows:
said employee shall pay thereon. subject to
the exemptions herein provided for, the tax
of 2 per cent on the excess OF his salary
over $1,000
The time when returns on income taxes
March to the first Monday" of March.
The entire section requiring private corpo-
rations to notify revenue collectors of all
dividends, profits, etc. declared is stricken
out. This does not relieve the corporations
from the tax but does away with the bur-
den of notifying the collector every time
dividends profits are divided. The sec
ton making it perjury to falsify any pro-
ceeding under the income tax is stricken
out.
The sections covering the tax on spirits are
new throughout, and are a substitute for
the House section struck out. The main
section OF the Senate bill Is as follows:
THAT on and after the first day of the sec
one calendar month after the passage OF
this act there shall be levied and coll ccted
on all distilled spirits I'm bond at that time
or that have been or that may be then or
thereafter produced in the United States
on which the tax Is not paid before that
day, tax of $40 on each proof gallon. or
wine gallon when below proof, and a pro-
portiCnate tax at a like rate on all fraction
al parts of such proof or wine gallons. Pro-
vided. that in computing tho tax on any
package OF spirits all fractional parts of a
gallon less than one-tenth shall be ex-
Guided"
The section changing. the bonded period is
as follows: THAT the tax being imposed
shall BE- paid by the oistillers OF the spirits
on or before the removal from the place OF
distiling or place Of storage, except in case
the removal therefrom without payment of
tax is authorized by law; and upon spirits
lawfully deposited in any distilery, ware
house or other bonded warehouse estab-
lished under internal revenue laws. within
eight years from the date OF the original
entry for deposit in any distillery ware
house or from the date OF original gauge,
except in case OF withdrawal therefrom
without payment of tax as authorized by