The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1894-08-31
The Income Tax.

The income-tax provision in the Tariff
bill begins to operate on Jan. /, 1895, and
continues until Jan. l, 1900. The tax e
per cent? is to be levied on all incomes
above $4,000. 1t is to be paid not only by
all who reside within the country, on ln-
come derived from any source, but by citi-
zens of the United States residing abroad,
and by all residents of foreign countries
on incomes derived from property situated
in the United States-or from business car
ried on here. The tax is on the income of
the year previous to that for which 1t is
levied. Therefore the first tax will be
levied on incomes received in 1894.
There are two classes of incomes recog-
nized by the bill-the incomes of individ-
uals and the incomes of corporations. The
taxable income of corporation is all its
income above its operating expenses, in
Guiding the sums paid to shareholders.
The tax of per cent is paid by the corpo-
ration. Therefore that part of an individ-
uals income which is derived from divi-
dends on the shares Of a corporation that
has paid the tax is deducted, on his return,
from his own taxable income.
There are exemptions allowed by the bill
in computing an individuals income be-
sides the $4,000. They are as follows
The necessary expenses of conducting a
business, all interest paid or due within
| In fFodA
from fires, storms or shipwreek, not COM
pensated for by insurance or otherwise
worthless debts, and income on which thu
tax has been paid by corporations.
AS to corporations, charitable, religious
and educational corporations are exempted
as are States, counties and municipalities
building and loan associations, saving
banks having NO stockholders, receiving n,
more than 81 900 in year from any on
depositor, and dividing all the yearl.
profits among the depositors except con
tribution to a 10 per cert surplus. Mutua
companies, including insurance companie:
are all exempt.
Every person having an income of So,
; 500 must report 1t to the Collector Of In
; ternal Revenue for his district, or his dep
uty. Salaries received from corporation
are reported by the corporations to the CO
; lectcr OF the recipients district. The ia
on the salaries of officials of the Unite
: States is to be deducted by the paymastel
" The collector may require a return 10 b
, verified by oath The collector or b
deputy may increase the amount of incon
reported if ''he has reason to believe thi
. the same is underestimated. II there
!. neglect or refcsal to make return,
y If return is fraudulent. the collector
his deputy shall himself make list,
examination of the person taxed. or 9th
u evidence. A so per cent penalty is 10
. charged for neglect or refusal, and 100 p
Is cent penalty for fraud.
{ A person may declare that he has n
:. "a, 600 of income liable 10 be assessed
that he has paid his income tax elsewher
!: If the collector OF deputy is convinced th
the declaration is true he nay grant
le exemption. II return is Increased by I
collector or deputy tine person taxed IN
ie offer proof tina. the increase is unjust, b
: the officer will not be Obliged to take {
= facts shown as conclusive, and it is with
his discretion to refuse relief. An apps
le from his decision may be taken TO I
y Commissioner of Internal Revenue.
ne If a corporation does not file its stat
&c ment a fine of 81. eco is TO be levied on
" and 2 per cent month is to be charged
u the amount of tax due until it is paid.
. The tax is payable on July /, in ca
." year. If it is not paid within ten d'
after that penalty Of 5 per cent is to
= charged, together with Interest at the II
Of per cent per month