Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1894-08-23
THE INCOME TAX.
Summary of tho Provisions of the Clause
in the New Tariff Bill Imposing an In
.nt,,a

Summary of tho Provisions of the Clause
in the New Tariff Bill Imposing an In
come Tax.
New York World,
The income tax provision in the
Tariff bill begins to operate on January
LIST, 1895, and continues until January
1st, 1900 The tax u per cent is to be
levied on all incomes above $4,000. 1t
is TO be paid not only by all who reside
within the country, on income derived
from any source, but by citizens of the
United States residing abroad, and by
all residents of foreign countries on in
comes derived from property situated in
the United States or from business car
ried on here. The tax is on the income
of the year previous to that for which
it is levied. Therefore the first tax
will be levied on incomes received in
1894.
There are two classes of incomes
recognized by the bill--the incomes Of
individuals and the incomes of corpora
tons. The taxable income of corpora
ton is all its income above its operating
expenses, including the sums paid to
shareholders. The tax Of per cent is
phlu Wy VIC COt ppIdtiOHs AClSlOIb
that part of an individuals income
which is derived from dividends on the
shares of corporation thai has paid
the tax is deducted, on his return, from
his own t1xaole income.
There are exemptions allowed by the
bill in computing an individuals in
come besides the $4,000. They are as
follows: The necessary expenses of
conducting business, all interest paid
or due within the year, local taxes,
losses in trade or from fires, storms or
shipwreck, not compensated for by in
surance or otherwise; worthless debts
and income on which the tax has been
| paid by corporations.
AS to corporations, charitable, re.
ligious and educational corporations arc
| exempted, as are States, counties and
municipalities, building and loan asso-
Citations, savings banks having no stock.
holders, receiving no more than 81 ,00C
in year from any one, deposition
and dividing all the yeAtly profits
among the drpositors except conLri.
button to 10 per cent surplus. Mutual
companies, including insurance com
panies, are all exempt.
Every person having an income Of
$4,000 must report it to the collector OF
internal revenue for his district or his
| deputy. Salaries received from corpora
tions are reported by the corporations tC
the collector Of the recipients district
The tax on the salaries of officials of tht
United States is to be deducted by til,
paymaster.
The collector may require return t
be verified b. oath. The collector o
his deputy may increase the amount o
income reported if "he has reason Il
believe that the same is underestimate.
Ii there is neglect or refusal to make
return, or if q return is fraudulent, TIN
collector or his deputy shall himsel
make list, by examination Of the per
son taxed, or other evidence. A 80 pc
cent penalty is to be charged for neglec
or refusal, and 100 per cent penalty 70
fraud.
A person may declare that he has no
$4,000 of income liable to be assessed o
that he has paid his income tax else
where. If the collector or deputy is con
WINGED that the declaration is true h
may grant an exemption. If return
increased by the collector or deputy til
person taxed may offer proof that til
increase is unjust, but the officer vii
not be obliged to take the facts show
as conclusive, and it is within his dis
erection to refuse relief. An appeal fror
his decision may be taken to the Com
missioner Of internal revenue.
If corporation does not file its state
ment fine of $1,000 is to be levied o
it, and 2 per cent month is to b
charged on the amount OF tax due unit
it is paid.
The tax is payable on July LIST in eac
year. If it is not paid within 10 day
after that penalty of 5 per cent is to |
charged, together with interest at I'll
rate Of per cent per month.