St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-19
HOW MANY WILL Be TAXED i?
A 2 PER CENT TAX ON INCOMES
OYER $40 O Fixed
BY THE HOUSE COMMITTEES.

Revenue Bill to Be Presented
to the House Today-Method
Provided for the Collection of
the Income Taxes-The Reeve.
nue. Expected.
WAsHINGT ON. Jan. 1s.-The full text
OF the internal revenue bill, including
the important income tax, has been
agreed upon by the Democratic MEM
bers OF the ways and means committee.
1t is probable the measure will be sub
mltted to the house tomorrow. AS yet
details of the income tax, as finally
agreed upon, have not been made pub
lie. The Associated Press is able, how
ever, to give very complete summary
OF the essential features of the tax as it
will be submitted to the house.
I. The bill provides that the income tax
is to go into effect Jan. l. 1895, and that
the first collection on incomes is to be
made on July l. 1895. All classes of
incomes are included in the measure,
and tho uniform rate of 2 per cent tax
OIL incomes over "a. 600 is fixed.
The most important text of the bill is
the method provided for the levy and
collection of taxes. 1t is made obligatory
on all persons receiving individual in
comes of over s., 500 to make return to
the local collector OF internal revenue.
These returns are gone over by the rev.
enue collector and tax list is made up
of those whose incomes exceed $4,000.
No tax is levied on those making re-
tnrn NJ Oh nd A
but the committee deemed 1t expedient
to leave this margin of $500 below the
exemption point in order that the re.
turns might be sure to show all who are
SUBJECT TO THE TAX.
In case person having an income of
over S, 500 fails to make return, it be-
comes 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 ordinary tax un-
der the law and the party 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
inquisitorial operation of the law. The
committee believe that it will do away
with the necessity of having assessors
prying into the private business of peo-
pie unless the latter have taxable in
come and try to evade the law. 1t is es-
tlGated that not more than 5000 per-
sons will be subject to this tax so that
great majority of citizens will not have
to make returns,
z Provision is also made by which no
Information can be made public as to
the details of the income reported by
citizens. If such details become public
it might injure the credit of firm or
individual. For that reason any public
or private person who divulges any part
of this information concerning incomes
is made subject to criminal prosecution,
with heavy fine and penalty.
= Particular provision is made for the
collection of the income tax due on
salaries. not only of officials, but the
salaries of individuals received from
business firms. corporations. etc.
% The individual receiving the salary
does not pay the tax. but it is made the
duty of every government, state, county
and municipal
Discussing OFFICER
to retain per cent OF all salaries over
taxable amount. This 2 per cent is to
be taken out Of the salaries in bulk at
the last payment of salary for the year.
The tax upon corporations includes
every phase of corporate stock. This
tax is general. and it is without the
$4,000 exemption allotted to individual
incomes. 1t is provided that including
the tax on corporate stock. the corpora
tion shall pay the tax and deduct the
amount from the dividends of the stock
holder. 1t is made the duty of
each corporation to take Q per.
cent of each annual corporate income
from the amount set apart for the stock
holder, and pay the total to the internal
revenue collector in the locality. Severe
penalties are provided for failure to
make the proper reduction from the
dividends of stockholders, or for fail
ure to make the return to the revenue
collector.
The entire business of the levying
and collecting Of the tax is placed in
charge OF deputy commissioner of in
ternal revenue. The different revenue
districts of the country are also provided
with deputy collectors who will espe-
cially manage the collection of the in
come tax.
The measure. as finally agreed upon,
is detailed elaboration of the plan for
an income tax proposed some months
ago by Representative ball, of Missouri,
THE DAlRYMEN.
Strorn NFoyan,oat p 49,