The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1894-01-26
THE INCOME TAX.
Text of the Bill Agreed Upon by the
Ways and Means Committee.

Text OF the BIZ Agreed upon Dy tne
Ways and Means COMMITTEES.
WASHINGTON, Jan. 19.-The full text
of the internal revenue bill, including
the important income tax, has been
agreed upon by the democratic MEM
beers of the ways and means committee.
The bill provides the income tax is
to go into effect January 1, 1895, 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 2 per cent tax
on incomes over $4,000 is fixed
The most important text of the bill
is the method provided for the levy and
collection of taxes. 1t 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
by the revenue collector, and tax list
is made up of those whose incomes ex-
coed $1,000. No tax is levied on those
making a return of above $500 and
under "a, 600, 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 $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. IL this exam
nation discloses the income is above
81, 600, the income is subject to twice
the ordinary tax under the law, and
the party failing to make his return is
deemed guilty of 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 a taxable income
and try to evade the law. 1t is esti-
mated that not more than 81, 900 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
information can be made public as to
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
atty.
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 bust
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 per cent is to be taker
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 81, 0Ot
exemption allotted to individual in
comes. 1t is provided that. including
the tax on corporate stock, the corpora
ton shall pay the tax and deduct the
amount from the dividends of the stock
holder. 1t is made the duty of eacf
corporation to take 2 per cent of eacf
annual corporate income from the
amount set apart for the stakeholder
and pay the total to the internal reve
nue. collector in the locality. Severe
penalties are provided for failure tC
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 interna
revenue. The different revenue dis
tricts of the county and country are
also provided with deputy collectors
who will especially manage the collec
ton of the income tax. The measur,
as fnalls agreed upon is detailed
elaboration of plan for an income ia,
proposed some months ago by Repre-
sentative Hall, of Missouri.