The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-01-19
ODIOUs INCOME TAX.
Men Getting Over $4,000 Must
Make q Statement.
If NOT. MUST GO TO JAIL.
Employers to Deck Their Men and Cor
porations 60 Cinch the sseekhsidsrs
-Insernal Revenue Bill Ready.

WASHINGTON CrTY, Jan. Is-The full text
of the Internal revenue bill, including the
income tax, has been agreed upon by the
Democratic members of the ways and
means committee. Ii is probable that this
measure will be submitted to the house to-
morrow. As yet the details of the income
tai have not been made public. The As
socIated Press is abe. however, TO give 8
very complete summary of the essential
features of the tax IS it viii be submitted
to the house.
The bill provides that an income tar
shall go INTO effect January /, 1896, and
the first collection on incomes will be
made July 1. 1875. Ali classes of incomes
are included in the measure, aud uni
form rate of ? per cent. tax on incomes
of over 81, 600 is fixed. 1t is made obliga-
tory on all persons receiving individual
incomes of over s.. 500 to make return to
the local collector OF internal revenue.
These returns are gone over by the revenue
collector and the tar list is made mp of those
whose incomes exceed $1,000. No tax is
levied on those making returns above
$500 and under $40ots. but the committee
deemed it expedient to leave q margin of
$500 below the exemption point in order
that the returns might be sure Of all sub
ject TO tax. In case q person having an
income OF SIS. 500 fails to make return, il
becomes the duty of the revenue assessor
to make inquiry IS to the amount Of that
persons income. If the examination dis
closes an income above 81, 900. the income
is subjected to twice the ordinary tax, and
the party failing to make return is deemed
guilty of a criminal offense and made SUBJ
ject TO q fine and imprisonment.
The main purpose in framing the above
provisions has been to avoid inquisitorial
operation of the law. The committee be-
lieve it will do away with the necessity oil
having assessors prying into the private
business of people, unless the latter have
taxable incomes and try to evade the law
1t is estimated that not more than $500
persons will be subject to this tax. so that
the great majority OF citizens will not have
to make returns.
Provision is also made by which no in
formation can be made public as to the
details OF incomes reported by citizens.
Any public or private person who divuiges
any part of the information concerning
incomes IS made subject TO criminal pres
ecution with heavy fine and penalty.
Particular provision is made for the
collection of the income tax due
on salaries OF not only officials,
but also salaries of individuals re-
ceived 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 officer TO retain
2 per cent. of all salaries over the taxable
amount. This 2 per cent. will be taken
out in bulk at the last payment of the
salary for the year.
The tax upon corporations includes
every phase Of the corporate state. This
tax is general and without the a, 600 ex-
emption allotted to individual incomes.
provided that including the tax on cor
porate stock, the corporation shall pay the
tax and deduct the amount from
the dividends OF the stockholders. 1t
is made the duty of each corporation to
take per cent. OF the annual corporate in
come from the amount set apart for the
stockholders and pay the total to the in
ternal revenue collector in the locality.
Severe penalties are provided for failure to
make the proper deduction from the
dividends of stockholders, or for failure to
make returns TO the revenue collector.
The entire business of levying and coll
lecting the tax Is placed in charge of q
deputy commissioner of internal revenue
The different revenue districts are also
provided with deputy collectors, who will
especially manage the collection of the in
come tax. The measure as finally agreed
upon is a detailed elaboration of the plan
for an income tax proposed some months
ago by Hall OF Missouri.