The Coconino weekly sun., 1894-01-25
THE INCOME TAX.
Text of the Ell Agreed Upon by tho
 Ways and Meaus Committee.


 Ways and Meaus Committee.
 WASHINGTON, Jan. 19.-The full text of the internal revenue bill, including the important income tax, has been agreed upon by the democratic mem- bers of the ways and means committed
 The bill provides the income tax is to go into effect January 1, 1S9J, and that the first collection on incomes is to be made on July 1, 1895. All classes of incomes are included in the measure, and the uniform rate of per cent. tax on incomes over s4,OOO is fixed.
 The most important text of the bill is the method provided for the levy and collection of taxes. It is made obliga- tory on all persons receiving individual incomes of over $500, to make re- turn to the local collector of internal revenue, These returns are gone over Ey the revenue collector and Q tax list is made up of those whose incomes ex- ceed S4,000 No tax is levied on those making return of above S3, 800 and under s4,000, but the committee deemed it expedient to have this margin of $500 below the exception point in order that the returns might be sure to show all who are subject to the tax.
 In case person having an income of over S3,500 fails to make return, it becomes the duty of the revenue asses sor to make inquiry as to the amount of the persons income. If this exam ination discloses the income is above S4,000, the income is subject to twice the ordinary tax under the law, and the party failing to make his return is deemed guilty of a criminal offense and is made subject to fine and impris- onment
 The main purpose in framing the above provisions has been to avoid an inquisitorial operation of the law. The committee believes it will do away with the necessity of having assessors pry- ing into the private business of people unless the latter have taxable income and try to evade the law. It is esti- mated that not more than 5000 per sons 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 ll1Ol Cdl bC puDllC dS JO the details of the incomes reported by citizens. If such details become public it might injure the credit of firm or an individual. For that reason any public or private person who divulges any part of this information concern ing incomes is made subject to criminal prosecution, with heavy fine and pen alty.
 Particular provision is made for the collection of the income tax due on salaries, not only officials, but the sal aries of individuals received from busi- ness firms, corporations, etc. The in dividual 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 , | per cent of all salaries over taxable | amount This 2 per cent is to be taken out of the salaries for the year.
 The tax upon corporations includes every phase of corporate stock. The tax is general and is without the S4, 900 exemption allotted to individual in comes. It is provided that, including the tax on corporate stock, the corpora tion shall pay the tax and deduct the amount from the dividends of the stock holder. It is made the duty of each corporation to take ? per cent of each annual corporate income from the amount set apart for the stockholder, and pay the total to the internal reve- nue collector in the locality. Severe penalties are provided for failure to make the proper reduction from the | dividends of stockholders or for fail ure to make the return to the revenue | collector.
 The business of the levying and col lecting of the tax is placed in charge of a deputy commissioner of internal revenue. The different revenue dis tricts of the county and country are also provided with deputy collectors who will especially manage the collec- tion of the income tax. The measure as finally agreed upon is detailed elaboration of plan for an income tax proposed some months ago by Repre- sentative Hall, of Missouri.