The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1894-08-29
The Income Tax Law.

The especially new feature OF the
revenue bill which has passed both
houses of Congress and is now
the law without the Presidents sig.
nature. Not that an ircome~sfax
is unknown to the revenue system Of
tbs United States, such q tax having
been levied and collected during the
rebellion period. That was regarded,
however, distinctly as war tax, to
be repealed as soon as the extraordi-
nary expense of the war was at an
end. The present income tax levied
in time of peace and for a period OF
6ve years from January next is, there
fore q new departure in Federal tax.
alton, and there will be good deal
of public interest in the provisions OF
the act.
The bill provides that from and af-
ter January l, 1895, and until Janu'
ary /, 1900, every citizen OF the
United States, whether residing at
home or abroad, and every person
not a citizen residing in the United
States who has an income in excess
of $4,000 year, shall pay a tax OF
two per cent. upon the excess. That
is, person with an income of $4,000
must pay tax of two per cent. upon
$4,000 or $40, the $4,000 being ex-
empt. The individual exceptions to
this rule are the officials of States,
counties, and municipalities. The
Governors of New York and Pennsyl-
vania, who each receive $4,000 a !
year and live in mansions, provided
by the State, will pay no tax, but
men in private life, who must provide
their own places of residence, are
taxed upon all income above $4,000.
This includes incomes from every
conceivable source except the interest
on United States bonds, which is not
subject to Federal taxation, and the
profits from corporate incomes upon
which the tax has been paid BY the
corporation. All money or personal
property acquired by gift or inherit
ance, ali profits from sales of real es-
tate purchased within two years and
all net income from professional sal.
aries or fees, as well as the profits
from every kind of business in which
the individual may be engaged, must
be included in the sworn return
made to the Collector of Internal
Revenue. The only exception to
this is that farmers are not compelled
to make return for the value of the
farm products consumed by their
own families. The net expenses of
carrying on any business or profes-
sion, including interest, taxes, wages
paid to employees, bad debts and 9th
er losses not compensated for BY in
surance or otherwise, may be de-
dacted, but all expenditures for per-
manent improvements or betterments
designed to increase the value OF
property must be included.
The only income besides those OF
public officials exempt from the pro-
visions of the law are those of States,
counties and municipalities, building
and loan associations, charitable, re-
ligious and educational organizations,
fraternal beneficiary associations and
savings institutions with no share
holders except depositors and no cap
ital except deposits. While no one
with an income of less than $4,000
will be taxed, all persons with in
comes of $4,000 and upwards must
make a return to The Collector of In
ternal Revenue of their respective dis
tricts, and if any person neglects to
make return or makes fraudulent
return the Collector is empowered to
make out return from the best in
formation available and add fifty per
cent. to the tax as a penalty for the
neglect or fraud.
It will be observed from this state
ment Of the features of the bill that
it is drag-net intended to reach the