Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1894-01-24
INCOME TAX SCHEME.
THE PLAN AS AGREED UPON
BY THE DEMOCRATS.
Incomes or All Glasses to Pay Two Per
Cent on Earnings of 1000 Per Year
and Over-TO Go Into Effect january
1, 1S95-How the Levy Is to Bo Made.

a
of the internal revenue bill, including
the important income tax, has been
agreed upon by the Democratic mem
bers of the ways and means commit
tee. As yet details of the income tax,
as finally agreed upon, have not been
made public The press is able, how
ever, to give very complete sum-
mary of the essential features of the
tax as it will be submitted to the
house.
The bill provides the income tax is
to go into effect January /, 1895, and
that the first collection on incomes is
to be made on July /, 1895. All cl asses
of incomes are included in the meas
ure, and the uniform rate of two per
cent tax on incomes over S4, 600 is
fixed.
The most important text of the bill
is the method provided for the levy
and collection of taxes. 1t is made
obligatory on all persons receiving
individual incomes of over So, 500 to
make Il return to the local collector of
internal revenue. These returns are
gone over by the revenue collector,
and tax list is made up of those
is levied on those making return of
above So, 500 and under 81, ,OOO but the
committee deemed it expedient to
have this margin of $500 below the ex-
ception point in order that the returns
might be sure to show all who are
subject to the tax.
In case a person having an income
of over SO, 500 fails to make a return,
1t becomes the duty of the revenue
assessor to make inquiry as to the
amount of the persons income. If
this examination discloses the income
IS above $4,000, the income is sub
Jected to twice the ordinary tax under
the law, and the party failing to make
his return is deemed guilty of Grim
lnal offense and is made subject to
fine and Imprisonment.
The main purpose in framing the
above provisions has been to avoid an
1nquisltorial operation of the law.
The committee believes it will do
away with the necessity of having
assessors prying into the private
business of people unless the latter
have a taxable income and try 20
evade the law. 1t is estimated that
not more than $4,000 persons will be
subject to this tax, SO that great
majority of citizens will not have to
make returns
Provision is also made by which no
information can be made public as to
the details of the income reported by
citizens If such details become pub
lie 1T might inj jure the credit of firm
or individual. For that reason anv
public or private person who divulges
any part of this information concern
ing incomes, is made subject to Grim
lnal prosecution with heavy fine and
penalty.
Particular provision is made for the
collection of the income tax due on
Salaries, not only of officials, but the
salaries. of individuals received from
business firms, corporations, etc The
Individual receiving the salary does
not pay the tax, but it is made the
duty of every government, state,
county and municipal disbursing of
hcer to retain two per cent of ali
salaries over taxable amount This
two per cent is to be taken out of the
salaries for the year.
s. The tax upon corpora tions includes
every phase of corporate stock This
tax is general and is without the
81, 600 exemption allotted to individual
incomes. 1t is provided that. includ-
ing the tax on corporate stock, the
corporation shall pay the tax and de-
duct the amount from the dividends of
the STOCKHOLDERS. 1t is made the duty
of each CORPORATION to take two per
cent of each annual corporate income
from the amount set apart for the
stoek-holder, and pay the total to the
internal revenue collector in the local
lty. Severe penalties are provided
for failure to make the proper reduc-
tion from the dividends of stock
holders or for failure to make the
return to the revenue collector
The business of the Ievying and
collecting of the tax is placed in
charge of deputy commissioner of
internal revenue. The different
revenue districts of the county and
country are also provided with deputy
collectors who will especially manage
the collection of the income tax. The
measure as finally agreed upon is
detailed elaboration OF a plan for an
income tax proposed some months ago
by Representative Hall of Missouri.