Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-01-22
INCOME TAX BILL
Laid Before the Ways and Means
Committee This Morning.
ALL INCOMES OVER $4,000 TAXABLE.
How Returns Are to be Made and
the Exemptions.
OTHER FEATURES THE BILL

The income tax bill as approved by the
democratic members of the ways and
means committee was laid before the full
committee at this mornings meeting. 1t
was read in part, but the committee ad-
journed before the reading was finished.
The bill provides a tax of 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
5000. The bill goes into effect January i,
1895.
In estimating incomes there shall be in
cluded notes, bonds and other securities
except such United States bonds as are
exempt from federal taxation. 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 esti-
mated; also on sales of live stock and OF
farm products generally where grown upon
ones own estate; all other incomes derived
from any source whatever and the share
Of any person of the profits of companies.
whether Incorporated or partnership who
would be entitled to the same If divided.
whether divided or otherwise. except the
incomes received from corporations whose
officers. as required by law. withhold per
centum of the dividends and pay the same
to the officer authorized to receive It.
Exemptions Made.
In addition to the 4.OO0 exemption. all ma
tionai, state and county taxes paid 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 causes not cover
ed by insurance and compensated for, ana
worthless debts. but excluding estimated
depreciation of value and losses on sales OF
real estate. No deduction shall be made for
improvements which may increase the
value of the property or estate. Only one
deduction of $4,000 shall be made from the
aggregate income of the members of any
family.
Every person having an income of more
than 81 500 shall make return to the depu-
ty collector of the district in which he re-
sides of the amount of his income. but per-
sons having less than $500 a year shall not
make such report These returns shall be
made on oath, and the deputy collector may
increase the amount of any list return it
II he has reason TO believe that 1t has been
understated- As a penalty for refusing to
make a list, the deputy collector may
make up such list according to the best in
formation obtainable and add fifty per cent
to the amount. In cases where fraudu-
lent list has been rendered a penalty of 100
per cent shall be added.
How an Appeal May he Made.
The bill provides at some length the
manner in which persons dissatisfied with
the decision of the collector may submit
their case to the commissioner of internal
revenue. The tax shall be collected on or
before the first day of each July and an
additional tax of 5 per cent shall be laid
on payment after that date, and interest at
the rate of 1 per cent a month upon the
amount of the tax.
All persons in the civil, military, naval
or other service of the United States in
Guiding Senator's, Represen tatives and dele
gates in Congress. shall pay a per cent
tax upon incomes above $4,000 year. This
amount shall be deducted from their in
comes by the disbursing officers making
the payment.
The bill provides that when any revenue
officer divulges the operations of a manu-
facturer or producer or the amount or
source Of his income he shall be subject
To nne and Imprisonment That the dep
uty collector shall make lists of persons
shall be the duty of persons. firms and
corporations made liable to any duty spe-
cial or other tax and not otherwise pro-
vided for, In case of a special tax on or
before July 81, annually; in case of income
4 tax on or before March I, annually and in
other cases before the tax accrues, to fur
/ taxable property.
/ In case such person fails but permits the
deputy to make I'D the return such list
may be received upon oath.
As to COruOratiOn
Section IL of the bill relates to corpora-
tions. 1t requires them to make return be-
fore the tenth day Of the month following
the declaration of dividends, under oath by
the principal officer.
Section II requires the CORPORATION to fur
rish. beginning 1885, on or before the first
Monday of blank, each year, a statement
showing the gross profits. expenses, exclu-
sive of interests, annuities and dividends
net profits without allowance for the same
amount paid on account of interest, an
nuitieS and dividends, amount paid for sala-
ries. employees. above and below $4,000.
Section ii levie5 taxes upon corporal ton
civldends. interest coupons and annuities
Wherever and whenever payable. to all par
ties whatsoever, and the corporation may
deduct or retain all payments made on ac-
count of such dividends. &c, a proportion
ate share of the tax SO paid.
Section 10 provides for the issue of re-
ceipts by collectors for taxes paid, and
whenever the payment is made otherwise
ehan by a corporation. the collector may
o1ve a separate receipt for each tax paid by
ny debtor on account of payments to sepa-
k6As creditors in such form that the debtor
SsA present them TO his creditors In salts
faction of their respective demands to the
amount specified in such receipts.
I Section ID requires the regulations TO be
approved by the Secretary of the Treasury
and to be conspicuously posted before TAX
ing effect.
Tax on Playing Cards.
Section 10 provides that after a blank
date in 1894 there shall be tax OF cents
pack on playing cards. payable by ad-
hesive stamps
Section - provides for the cancellation
of these stamps and punishment for their
misuse.
Section p requires makers Of playing
Cards to register
section ~ relates to the preparation and
Issue OF the stamps
Section 23 provides for the punishment of
cour terfeiterS of the same.
Section "A provides a punishment for the
preparation and sale of unstamped cards,
with provision that they may be ex-
ported without tax
Sections 25 and 20 are penalty clauses
relative to the misuse of wrappers for
cards.
section q requires the tax on cards to
% pald by the manufacturer. ard declares
the person who offers them for sale
whether foreign domestic to be q man
ufacturer
section % provides for the collection of
the Tax on cards illegally issued
Tax ON Distilled spirits.
section - fixes the tax. on and after the
second calendar month after the passage Of