The Yellowstone journal. [volume] (Miles City, Mont.) 1893-1901, 1894-01-20
THE INCOME TAX.
Complete Summary of the Es-
sential Features of the
New Bill.
\ Uniform Two Per Cent Tax on All
Incomes That Reach $4,000 or
More Per Annum.

WAsHISGToS. Jan. 19.-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. 1t is probable
the measure will be submitted to the
house tomorrow. As yet the details OF
income tax have not been made public.
to give very complete summary of the
essential features Of the tax as it will be
submitted to the house. The bill pro
vides that the income tax shall go into
effect Jan. !. 1888. and the first collrc-
tion on incomes be made July /. 1885.
All classes 81 Incomes are included in
10 the measure. and the uniform rate u
two per cent on all incomes Of over $1,000
is fixed.
II is made obligatory on all persons
receiving individual incomes of over
ssstr 10 make return 10 the local col.
leetor 81 internal revenue. These re.
turns are gone over 10y the internal rev
enue collector and a tax list made up 0f
thOsc whose incomes exceed SiepO. No
Tax IS levied upon those making returns
- above $500 and under $500, hut the
committee deem ed 1t expedlent to leave
margin Of 500 below the exemption
point in order that returns might bc sure
oi all subject h. tax.
IN ease person having an income IL
over $500 fails to make return. it be
comes the duty Of tht revenue assessor
t. make inquiry as to the amount OF the
income. II the examination discloses
an income of above 5000. the income is
subject to twice the ordinary tax, and
the party failing TO make return IL deem
ed guilty of an original ofense. aud
made subject 10 fine and Imprisonment,
The main purpose in framing the above
provision has been to avoid the Inquisl-
torlal operation - the law. The com.
mittce believe it will do away with the
necessity of having ASSESSORS pr!ing into
the private busiEess of people. unless
the latter have a taxable inc cJme and try
10 eyade the law II Is estimated that
not more than 5000 persons viii be the
subject of this tax. 50 that a great ma
F jorlty Of the citizens will not have 10
make returns.
Provision il also made 10y which no in
+ formation can be made public as To the
details Of incomes reported by citizens
F Any public or private person who di-
+ yulges any part q the information con
cerning incomes is made subject to erin.
inal proceedings. with a heavy tine and
penalty. Particular provision is made
for the collection of the income tax due
on salaries. not only of officials. bnt sal
aries Of individuals received from bust
ness firms. corporations. etc. The indi
vidual receiving the salary does not pay
the tax. but il is made the duty Of every
government. state, county and munich
pal disbursing officer to retain two per
cent OF all salaries over the taxable
amount. This two per cent can he taken
out in bulk at the last payment Of salary
for the year.
The tax upon corporations includes
every phase of corporate stock. This
tax is general and without the $1,000 ex-
emption allotted individual incomes.
provided that, including the tax on cor
porate stock. a corporation shall pay the
tax and deduct the amount from divi-
dends Of stockholders. II is made the
duty Of each corporation To take two
per cent OF each annual corporate in
come from the amount set apart for
stockholders. and pay the total to the in.
ternal revenue collector Of the locality.
Severe penalties are provided for the
failure TO make the proper deduction
from dividends Of stockholders or for
failure to make return to the revenue
collector. The entire business Of levy
ing and collecting the tax is placed in
the hands of the deputy commissioners Of
internal revenue. 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, is de
tailed elaboration Of the plan for an in
come tax proposed some six months ago
by Hall of Missouri.
VIII FIGHT nm the 25th