The record-union., 1894-05-05
CHANGING THE TARIFF.
Republicans are Confident the Bill
Cannot Pass the Senate,
WHILE DEMOCRATS HOLD JUST THE
OPPOSITE OPINION.
Senator Vest Ofrsrs Amendments to
the Income Tax Feature of the Meas
ure, the Object of Which is to Re-
lieve Individual Investors in Cor
porat1ons, and Have the Profits of
Corporations Taxed.
Special to the REcoRD-US1oS.

ing the truce agreed upon between the
Democratic aud Republican Senators,
whereby it was arraigned that hostilities
on the tariff should cease until next
Tuesday, there has not been day when
there was bolder talk and stronger pro-
testations on the respective sides of the
chamber than to-day. While the Repub-
lican Senators have allowed the Demo-
Gratis to infer that when the amendments
are publically announced and the assur-
ance of vote sufficient to pass the bill is
given they will yield to the majority.
they assert, privately. that they know
the necessary votes cannot be obtained.
and declare that the Democrats in the
serious trouble than they have yet en-
countered, and in making this statement
they assert that Senators Murphy and
Smith are as doubtful as is Senator Hill
in the support Of the bill as it is amended.
The Democrats express the greatest
confidence in the success of the bill.
Senator Faulkner said to-day that the
bill would become law before the 18th
of June, and that Congress would adjourn
by the Fourth of July.
Senator Jones has put in the entire day
in his committee room, and has had Sen
ator Vest with him part OF the time.
They have been engaged principally on
the wool and cotton schedules, which it
is believed are to be still further changed
than they have been.
Senator Mills interested himself in the
schedules, and there is little doubt that
he will secure more liberal concessions
than have been granted.
Senator Vest to-day offered amend
ments to the income tax feature of the
tariff bill, the object of which is to relieve
individual investors in corporations, and
have the profits of corporations taxed.
Instead of compelling individuals to ex-
hibit their books and papers, the Assessor
may estimate the amount of income, and
the persons SO assessed must appear and
prove that they have been assessed too
high, if such is the case. The changes in
detail are as follows:
Sections l9, 90 and 81 are stricken out,
and the following sections submitted
therefor: THAT there shall be levied and
collected tax of two per cent. per an
mum on the profits or income of ordinary
working or operating expenses of all
banks, banking institutions, trust COM
panies, savings institutions, fire, marine,
life and gother insurance companies; rail-
roads, car, turnpike, canal navigation,
slack water, telephone, telegraph, electric
light gas, water, street railway compa-
MES and all other corporations, companies
or associations doing business for profit
in the United States, no matter how
created and organized; that said tax shall
be paid on or before the first of July in
each year, and if the Presidet. or other
chief officer of any corporation. company,
or association shall neglect or refuse to
file with the Collector of the Internal
Revenue District in which said corpora
ton, company or association shall be To-
Gated or engaged in business statement
verified by his oath or affirmation, show
ing the amount net profits or income re-
ceived by said corporation, company or
association during the whole calendar
year preceding the date OF filing of said
statement as hereinafter secured, the cor
poration, company or association making
default shall forfeit as penalty the sum
of $4,000, and ten per cent. OF the amount
of taxes due for each month until the
same is paid, the payment of said penalty
to be enforced as providediin other cases of
neglect and refusal to pay penalties and
taxes under the revenue laws.
ssThe profits or incomes of all corpora
tionS, companies or associations shall in
clude the amounts paid to shareholders
and bondholders, or holders of certificates
of indebtedness of any kind, or carried
on account of any funds used for con-
struction, enlargement of plant, or any
other expenditures or investment repre-
senting the annual profits made or ac-
uuired by said corporation, company or
association.
''That nothing herein contained shall
apply to States, counties or municipali-
ties, nor to interpretations, companies or
associations organized and conducted
solely for charitable, religious or educa-
tional purposes, nor to the stocks, shares,
funds or securities held by any judiciary
or trustee for charitable, religious or ed
ucational purposes, nor to such building
or1oan associations as are organized un-
der the laws of any State or Territory, or
of the District of Columbia, which makes
loans to their shareholders TO enable
them to provide for themselves homes" T"
The above is substituted for Sections
SO, go and 81 of the tariff bill, in which
Section SO provided for levying per
cent. tax on banking and like corpora
tions Section 60 provided how the tax
on such institutions should be levied and
collected. Section 81 provided for the 2
per cent. tax on interest on stocks, divi-
dends or profits of railroads, gas and
like corporations, and provided how it
shall be collected.
Other amendments insert the word
"willfully'' in providing penalty for
false statements, as, for instance, in Sec
ton So, where penalty of 5 per cent. is
added for false statements. This is, OF
course, intended to prevent the infliction
of penalties in cases of unintentional
false returns. 1t also deprives the rev.
enue agent of the privilege of examining
the books or accounts of persons accused
of making false returns, and restricts the
examination to the person himself.
In many cases the amendments put
corporations. companies and associations
upon the same level as individuals, Civ
amount of income where the statement
of income has been increased by the
revenue agent. 1t also gives to corpora
tions, companies and associations the
rights granted to individuals to appeal
from the Deputy Collector and from the
Collectors decision to that of the Com
missioner of Internal Revenue. That
relieves them from the assessment of
penalties, as it does individuals, except
upon reasonable notice of time and place
of the hearing. The salaries OF the State,
county and municipal officials are re-
lieved from the operations of the pre-
posed tax law.
The amendment providing for the time
limit OF the operation of the Act, made in
Sections "a and 60, says the levying of the
tax shall begin on June l, 1895, and end
on January /, 1900.
An important amendment is made to
Section 55, which is as follows: PRO
vided, also, that in compiling the income
of any person. corporation. company or
association. there shall not be included
the amount received from any company,
corporation or association as interest or
dividends on the bonds of stocks of such
corporation, company or association, if
the tax Of 2 per cent. has been paid on its