The morning call., 1894-01-19
TAX ON INCOMES.
Some Provisions of the
Measure.
UNDER AN INQUISITION.
1T Is Made 8 Penal OffenSe to
Withhold Information.
EVERYBODY is UNDER THE LAW
individuals Will Be Made to Pay and
Corporations to Receive a
Double Dose.

WASHINGTON, Jan. 18.-The full text of
the internal revenue bill. including the in
come-tax provision, has been agreed upon
by the Democratic members of the Ways
and Means Committee. and it is probable
that the measure will be submitted to the
House tomorrow.
As yet the details of the income tax
have not been made public. The Asso-
ciated Press is able, however. to give
a very complete summary of the essential
features of the tax as it will be submitted
no the House. The hill provides for an
5ncOme tax to go into effect on January 1,
1885. and the first collection Oh incomes
will be made on July I. 1895. All classes
of incomes are included in the measure,
and uniform rate of 2 per cent tax Oh in
comes over $4,000 is fixed. 1t is made
obligatory on all persons receiving iDdi-
yidusl incomes of over $500 30 make re-
turn to the local collector Of internal
revenue. These returns are gone over by
the revenue collector and the tax list is
made up of those whose incomes exceed
$4,000. No tax is levied on those making
return of above $500 and under $4,000. but
the committee deemed it expedIent to
leave margin of $500 below the exemp-
ton point IN order that returns might be
sure from all subject to the tax. In
case person having an income of over
$500 fails to make return, it becomes the
duty of the revenue assessor to make in
quiry as to the amount of such persons
income. If the examination discloses an
Income above $4,000 the income is sub
jected to twice the ordinary tax, and the
party failing TO make return is guilty of
l..
and imprisonment.
The main purpose in framing the above
provisions has been TO avoid an inouisl-
torial operation Of the law. The commit
tee believes it will do away with the ne
cessity of having assessors pryiDg into the
private business of people unless the latter
have taxable incomes and try to evade the
law. 1t is estimated that OF more than
$1,000 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 divulges
any part of the information concerning
incomes is made subject to criminal prose
cution. with heavy fine and penalty.
lection of the income tax due op salaries,
not only of officials but also the salaries of
individuals received from business firms
or corporations. The individual receiving a
salary does not pay a tax, but it is made
the duty of every Government, State and
municipal disbursiDg officer to retain per
cent Of all salaries over the taxable
amount. This per cent will be taken out
Z, IL .
Of salary for the year.
The tax upon corporations includes every
sort of corporate stock. This tax is gen.
eral and without the $4,000 exemption al
lowed upon individual incomes. 1t is pro-
vided that including the tax on its cor
porate stock the corporation shall pay the
tax and deduct the amount from the divi-
dends to stockholders.
EIt is made the duty of each corporation
to take per cent from each annual cor
porste income from the amount set apart
for the stockholders aud pay the total to
the internal revenue collector in its
locality. Severe penalties are provided
for the failure to make proper reduction
from the dividends of stockholders and for
failure to make return to the revenue
collector.
The entire business of levying and COL
lecting the tax is placed in charge of a
deputy commissioner of internal rev.
enue. The different revenue districts are
also provided with deputy collectors, who
will especially manage the collection of the
income tax. The measure as finally agreed
upon ia detailed elaboration of the plan
for an income tax proposed some months
ago by Hall of Missouri.