St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-05
SOME INCOME TAX CHANG
VESTS SCHEME 10 7Ax 7HE PROFITS
or c0RP0aA7l0Ai.
INCOMES MAY BE KsTIMArED

BY the Assessor and.the Person So
Taxed Can Prove the Amount
Of His Income The Various
Financial institutions That
Will BE Subject to
Tax.
WASHINGTON, May 4-Senator Vest
to-day offered amendments to the tariff
income Tax bill, providing for a change
in the income tax feature OF the bill. 1t
does not change The tax of 2per cent,
nor the amount at which incomes should
he subject to tax, leaving at $4,000 and
upwards. The object of the amend
ments is to relieve individual investors
in corporations of the charge where
their incomes do not exceed $4,000. but
to have the profits OF the corporations
taxed. 1t is also proposed to
eliminate the inqulsitorial features of
the income tax. Instead of compelling
he individual to exhibit his books and
papers. the assessors may estimate the
amount OF the income. and the persons
so assessed may appear and prove III It
he has been assessed too high. if such is
the case. The changes in detail are
sections 50. 50 and I'll. stricken out. and
the following section substituted there.
for:
THAT there shall be levied and col
lected tax Of per cent. per anhum ON
the net profits or income ABOVE ordinary
working or operating expenses of
all banks. banking Institutions,
trust companies, saving Institutions.
fire, marine and life and
other Insurance companies, railroad,
canal, turnpike, canal navigation, slack
water. telephone. telegraph, express,
electric light, gas. water, street railway
companies. and all other corporations,
companies or associations doing bust
ness for profit in the United States. no
matter how created and organized. That
said tax shalt be paid ON or before the
first day of
JULY IN EACH YEAR.
and If the president or other chief Off cer
OF any corporation, company OF assOcia !.
ton shall neglect or refuse to file with
the collector of internal revenue district
in which said corporation. company or
association shall be located or engaged
i'll business statement verified by his
oath 0r affirmation, showing the amount
OF net profit or income received by said
corporation, company or association
during the whole calendar year pre-
ceding the date of filing said state
ment as hereinafter required. the cor
poration, company or association max
ing default shall forfeit as penalty the
sum of 81, 900 ana 10 peri :centI Of the
amount of taxes due for each month until
tao same Is paid; the payment Of said
penalty to he enforced as provided in
O her cases Of neglect and refusal to pay
penalties and taxes under the internal
revenue. Net profits or incomes of cor.
pOrations, companies or associations
shall include the amounts paid to share
holders and bOndholders or holders of
certificates of indebtedness of any kind,
or carried to the account of any fund,
or
USED FOR CONSTRUCTION
enlargement of any plant or any other
expenditure or investment representing
the net annual profits made or acquired
by said corporation, company or ass0-
citation.
That nothing herein contained shall
apply to states, counties Or municipal
tiles; nor to corporations, companies or
associations organized and conducted
solely for charitable, religious or edu-
cational purposes; nor to the stocks,
shares, funds or securities held by any
fiduciary or trustee for charitable,
religious or educational purposes: nor
to such building and loan association
as are organized under the laws OF any
state or territory, or for the District of
Columbia, which makes loans to their
shareholders to enable them to provide
for themselves homes.
The above is substituted for sections
SO. 60 and 81 of the tariff bill. in which
section SO provided for levying of per
cent tax on banking and like corpora
tons. Section 90 provided how the tax
on such institutions should be levied
and collected. Section 81 provided for
the 2 per cent tax upon the interest of
stock dividends or profits of railroad,
telegraph companies, gas and light and
like corporations, and provided how it
should be collected.
Other amendments insert the word
"willfully" in providing a penalty for
false statements, as for instance, in Sec
ton So, where a penalty of 80 per cent Is
added for false statements. This is, OF
course, intended to prevent the intiic-
ton of penalties in case of uninten.
tional false returns. 1t also deprives
the revenue 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. com-
panles or associations upon the same
level as individuals, giving them the
privilege OF proving the amount of in
come where the statement of income
has been increased by the revenue
agent. 1t also gives to corporations,
companies and associations the rights
granted to individuals to appeal from
the deputy collector and from the
collectors decision to that of the
commissioner of internal revenue. 1t
relieves them from the assessment of
penalties except upon reasonable notice
Of the time and place of hearing. The
salaries of state. county and municipal
officials are relieved from the operations
OF the proposed law.
The amendment providing for the
time limitation of the operation of the
act is made i'll section 81. and provides
that the levylng of the tax shall begin
Jan. ]. 1895, and end Jan. /, 1910.
An important amendment is made to
section SIS. 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 corporation, company or associa-
ton as interests or dividends upon the
bonds or stock of such corporation,
company or association if the tax of 2
per cent has been paid upon its net
profits by, said corporation. company or
association, as required by this act"
The clause in paragraph 55 requiring
estimates to be made upon the shares
Of persons in the gains or profits of
companies in levying the income tax is
stricken out.
The intention of these amendments is
to prevent double taxation upon in
comes received from corporations.
Amendments are made to section IS,
providing for returns OF corporations,
So as to include companies and associa-
ti0ns and place them upon the same
terms under the law as corporations.