The Portland daily press., 1894-01-23
The NEW AQUEITIoN.
Income Tax Bill as It Will Appear
in the House.
THE MEASURE is LIKELY TO BE
SENT IN TODAY.

Its General Features Have Been Outlined
but the Description of Its Complicated
uty Collectors-The Tax as Applied to
Corporations-Con and Army
oficers Can't Dodge It.
Washington, January 22.-The income
tax bill, as approved by the Democratic
members Of the ways and means commit
tee, was laid before the full committee
at this mornings meeting. 1t was read
in part but the committee adjourned be-
fore the reading was finished. The bill
provides for tax of 2 per cent upon all
incomes of citizens of the United States,
either at home or abroad, from any kind
of property, rents, interest, dividends or
salaries, on all amounts over and above
$4,000 The bill goes into effect January
1, 1885, The bill provides that in esti-
mating incomes, there shall be included
interest upon notes, bonds and other
securities except such United States
=
bonds as are exempt from federal taxa
tion. The tax is laid on profits realized
within the year from sales OF real estate,
purchased within the year or within two
years previous to the year for which the
income is estimated; also on sales of live
stock and farm products generally
where grown upon ones own estate; all
o&ha,, :, o,,,.as dor;u1d froro oov Snrfrca
whatever, ana the share of any person in
the profits of companies, whether incor-
porated or partnership who would be
entitled to the same if divided, whether
divided OF otherwise, except the incomes
received from corporations whose officers,
as required by law, withhold q per CEN
tum of the dividends and pay the same
to the officers authorized to receive it,
Every person having an income of more
than $500 will be required to make a re-
turn to the deputy collector of the dis
trict in which he resides of the amount
of his income, but persons having less
than $3500 year shall not make such a
report. These returns shall be made on
oath and the deputy collector may in
crease the amount of any list or return
if he has reason to believe that it has
been understated. AS a penalty for re-
fusing to make the list, the deputy col
lector may make up such list according
to the best information obtainable and
add fifty per cent to the amount. In case
fraudulent list has been rendered,
penalty of 100 per cent shall be added
The tax shall be collected on or before
the first day of each July. The bill pro-
vides that when any revenue office
divulges the operations of man ufacturer
or producer or the amount or source of
his income, he shall be subject to fine
and imprisonment.
In addition to the $4,000 exemption, all
within the year shall be deducted from
the profits of the person who has actually
paid them; also losses sustained during
the year from fires, shipwreck and other
cases not covered by insurance and COM
pensated for and worthless debts, but
excluding estimated depreciation of
values and losses on sales OF real estate
No deduction Shall be made for improve
ments which may increase the value of
the property or estate. Only one deduc-
tion of $4,000 shall be made from he
aggregate income of the members of any
family.
The bill provides at some length the
manner in which persons dissatisfied
with the decision of the collectors may
su bmit their cases to the com missioner of
internal revenue.
All of the persons in the civil, mill
tary, naval or other service of the United
States including Senators, Representa-
tives and delegates inCongress, shall pay
two per cent tax on incomes abovesS40O0
a year. This amount snail be deducted
from their incomes by the disbursing
officers making the payment.
Section II of this bill relates to the
corporations. 1t requires them to make
return before the tenth day of the month
following the declaration of dividends,
under oath by the principal officer.
Section 12 requires the corporation to
furnish, beginning 1895, on or before the
first Monday of each year statement
showing the gross profits, expenses, ex
elusive of interests, annuities and dlvi-
dends, net profits without allowances for
the same, amount paid on account of in
terest, annuities and dividends, amount
paid for salaries to emloyes, above and be-
low $4,000.
Section IA levies taxes upon corpora
tions, dividends. interest coupons and
annuities wherever and whenever payable
to all parties whatsoever, and the corpo-
ration may deduct or retain from all pay
ments made on account of such divi-
dends, etc., proportionate share Of the
tax so paid.
Section Is provides for the issue of
receipts by collectors for taxes paid and
whenever the payment is made other
W1So LQdQ Uy d LILO COllCCIOl
NAV give separate receipt for each tax
paid by any debtor on account OF the
payments to separate creditors in such
forms that debtor can present them to
his creditors in satisfaction to their
respective demands to the amount speci-
fed in such receipts
Section 16 requires the regulations to
be approved by the Secretary of the
Treasury and to be conspicuously posted
before taking effect. .t'
Section 10 provides that after blank
date in 1894, there shall be tax of two
cents pack on playing cards, payable by
adhesive stamps.
Sections following relate to the method
of laying this tax.
Section 80 fixes the tax on and after
the second calendar month after the pas
sage Of the act, on all distilled spirits
produced in the United States on which
the tax is not paid before that day, at
one dollar per gallon, to be paid by
the possessor on or before removal from
warehouse within eight years from the
date of origin and entry for deposit in
any distillery or bonded warehouse ex-
cept in case of withdrawal without pay.
ment of tax as now authorized by law.
Section 80 continues existing ware
house bonds on distilled spirits in full
-.