The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1894-01-31

The Income Tax.
Provisions Of Gle Proposed Internal
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The bill provides that the income
tax is to 60 into eject on January |.
1895, and that the frss collection on
incomes is 70 bas made on July i,
1895. An classes Of incomes are In
cluded in the measure and the uniforus
rate Of 2 per cent tax on incomes over
y. .0061 Ed. . sass &
The mes ippossanss@ssail ef .heg sM
is the M Id iSasid for 8ahe sssy'
aud collection 81 taxes Il is made
obligatory on all persons receiving
ipdiiaaal iaeonse Of over 6. 5Q0, It,, .o
make return to the local collector of
internal .Eeyenne. These returns are
gone Over u 2eseWon Dllsosg snd
taxable IL issdsde prsofs tbess1 1hose
Incomes pesa s$x@. 70 saax is
levied oS those making . return of
above S3. 500, and under $4,000. but
the committee deemed it expedient to
leave this margin of $500 below the
exemption point u order that the
returns mighe te snre 9 show al who
are subject to the tax.
In case a person having an income of
over S3, SEQ fails 70 uske . return. it
becomes the duty Of the revesue assessor
to make inquiry as toahe fmountsof the
persons income. II this examination
diselesps tlss the iauenie p ahoye $4,7s
600 t6esaeomess snb5eetsd To- twice
the ordinary tax under the law, and the
party failing to make bis return is
deened euiltyofe q criminal pfsnce and
is .as sstses = hae ana ipprisoa-
ment.
The main purposes in framing the
above provisions has been to agpid an
inquisitorHl Get dhspN o. sla~s 8 6s
committee believed that It viii do away
with the necessity of having assessors
p,y ps,. e''39s i9eI,s Sf &C.
and Z .o Saak tl lauE sat
mateiStat Bp. 8 3 esahau p0QP@
III fbe see sees5eslo s5lo shisf. 81 ass
. great majority Of citizens will not
have to make returns.
Provision is also made by which no
iafaenAkiaRaAaaes made pabliea as to.
details of the income reported by the
citizens Mfsach dstsib become pubic
ita;eh sipipre the ersdsofsa firm 8
Individual. j az For that reasoa any public
or private person who divulges any
part of this information concerning
incomes is made subject Co criminal
prosecution, with heavy fine and
penalty. This provision is in line with
the English law Of 1857. Prior to
that time the British income tax was
very unpopular, because it made public
the details of private business. But
after the Law Of 1857 was passed there
was little further objection to the tax.
Particular provision is made for the
collection Of the income tax due on sala-
ries, not only official salaries but the
salaries of individuals receiving from
business firms, corporations, etc.. The.
individual receiving the salary does not
pay .hestax, butt is made the duty of
every Government. State, county and
municipal disbursing officer to retain 2
per cent. This Q per cent is to be
taken out of the salariesin 5ulk at the
last payment of salary for the year, and
not at the end of each week or month.
This avoids the conplexity which would
result from taking oat portion of the
salary each week or month.
The tax upon separations includes
every ptas6 efcorpefate stoek This
tsxs general and is without the $4,-
600 exemption allowed to individual in-
rsnea. It b prosided that in collect
ing tie tax corporation stock. the
corporation shall pay the tax and
deduct the amount from the dividends OF
the stock holder. This obviates the
necessity of levying taxes upon the
army ef corporate stockholders through
ont the country aud restricts the busi-
ness of the Government to dealings
with corporations. It is made the duty
of each corporation to take 2 per cent.
Of each annual corporate income from
the amount set apart for each stock
holder. and pay the total to the internal
revenue collector of the locality.
Severe penalties are provided for fail
ure to make the proper reduction from
the dividends Of stockholders or for a
failure to make the retarn to the
reye0ue collector.
The entire business of the levying
and coneetisg of. tha tax is placed in