The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-19
INCOME TAX DETAILS
The Internal Revenue Bill Agreed
to by Wilson's Committee.
All Persons Whose Incomes Are Over
$500 Year Must Make Returns
to the Local Collector.
HARSH PENALTIES ATTACHED
Uniform Tax of 2 Per Cent. on ALI
Incomes Over $4,000.
Tom J0hnsOn's Philanthropy Punctured
by Dalzell and BrOOkshire Venti-
lated by ii. U. Johnson.

WASHINGTON. Jan. 1s.-The full text of
the internal revenue bill, including the i'm
portant 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 to-
morrow. AS yet details of the income tax
finally agreed upon have not been made
public. The Associated Press is able, how
ever, to give a very complete summary of
the essential features of the tax as Ii will
be submitted to the House.
The bill provides that the income tax
is to go into effect Jan. 1, 1895, and that
the first collection on incomes is to be made
on July /, 1895. All classes of incomes
are included in the measure. and the uni
form rate of 2 per cent, tax on incomes
over $1,000 is fixed. The most important
detail of the bill is the method provided
for the levy and collection of taxes. 1t is
made obligatory on all persons receiving
individual incomes of over $500 to make
a return to the local collector of internal
revenue These returns are gone over. by
the revenue collector and a taxable list
is made of those whose incomes exceed
81, 900. No tax is levied on those making
a return of about $500 and under $4,000.
but the committee deemed it expedient to
leave this margin of $500 below the eX-
emrtion point in order that the returns
might be sure to show all who are sub
ject TO the tax. In case a person having
an income Of over $500 fails to make a
return it becomes the duty of the revenue
assessor to make inquiry as to the amount
Of the PERSONS income. If this examination
discloses that the income is above $4,000
the income is subjected to twice the ordi-
failing to make his return is deemed guilty
of a criminal offense and is made subject
to fine and Imprisonment.
The main purpose in framing the above
provisions has been to avoid an inquisi-
toral operation of the law. The committee
believe that it will do away with the neces-
sity of having assessors pry into the pri-
vate business of people unless the latter
have a taxable income and try to evade the
law. 1t is estimated that not more than
eghty-ive thousand persons will be SUBJ
ject to this tax, so that great majority
of citizens will not have to make returns.
Provision is also made by which no infor-
masion can be made public as to the de-
tails of the incomes received by cltizens.
If such details become public Ii might in
jure the credit of firm or lndlVldual. For
that reason, any public or private person
who divulges any part OF this information
criminal prosecution, with heavy fine and
penalty. .
Particular provision is made for the col
lection of the income tax due on salaries,
not only official salaries, but the salaries
of individuals received from business hrms,
corporations, ETC. The individual receiving
the salary does not pay the tax, but IL Is
made the duty of every government, state,
county and municipal disbursing officer to
retain per cent. of all salaries over the
taxable amount. This 2 per cent is TO be
taken out of the salaries in bulk at the
last payment of salaries for the year.
The tax upon corporations Includes every
nhase of corporation stock. This tax Is
general and is without the $4,000 exemp-
ton allowed to individual incomes IL Is
provided that in collecting the tax Oh
corporate stock the corporation shall pay
dividends of the stakeholder 1t is made
the duty of each corporation to take 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 failure TO make
the proper reduction from the dividends
of stockholders or for a failure to make
the return to the revenue collector.
The entire business of the levying and
collecting OF the tax Is placed in charge
of q deputy commissioner of internal rev.
enue The different revenue districts of
the country are also provided with deputy
collectors, who will especially manage the
collection of income tax. The measure, as
finally agreed upon, is a detailed elabora-
ton OF the plan for an income tax pro-
posed some months ago by Representative
Hall of Missouri.