The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1894-08-21

The income tax provision in the tlr-
III bill begins to operate on January l.
1895, and continues until Jan
uary /. 1900, says tho New York
World. Tho tax-two per cent lis to
be levied on all incomes above 8 900
Il la to be paid not only by all who re.
side within the country, On income
derived from any suurcs. Luz by citi.
zens OF the United States RESTING
abroad. and by al residents offogelgn
countries or incomes derived from
property situated in the United States
or from business carried on hero. The
fax Ia on the income OF the year preyI.
ous to that FOR Which It Is levied.
Therefore. the frat tax viii DO levied
on incomes received In 1894.
There are two classes Of Incomes
recognized bY tho bill tho Incomes
OF individuals and the incomes oil
corporations. Tho taxable income
of a corporation is all its income
shove Its operating expenses. includ
ing the sums paid to shareholders
The tax OF two per cent. Is paid by
tho corporation. Therefore that part
of an individuals income which is do
Ilvned from divldeds On tho shares o
. corporation that has pal. tue tax /:
deducted. on his return. fro III his owI
taxable income.
There are exemptions allo wed by til
bill in computing an inui yIuuais In
come besides the $4,000. They arc d
follows: The necessary eX peHsss Of con
Quoting business, ali Interest paid Of
due within the year, local taxes, losses
In trade or from Tires, storms or ship
wreck not compensated for 10y lnsur
aIce or otherwise; worthless delta
and income on which tho tax hns beer
paid by corporations,
As TO the corporations. charitable
religious ami Educational corpora
lions are exempted, as Rte o'4tea,
counties and municipalities, hulldIal
aud loan associations, Savings baHE,
having no stockholders, receiving NJ
more than $1,000 IN year from any
one depo5itor, and dlyi Ing all Ink
yearly profits among the depusltor5
except combination to ten per cont
surplus Mutual companies luGlul
ing Insurance companies. Rre ali eS
smpt.
Every person having on income O
o., 800 must report Il to the COileetu
OF Internal Revenue iOr lis district 0
his deputy. Salaries received fraI
corporations are reported by the cot
porntion to the collector OF the reel.
tents district. Tho tax on the salario
of officials OF ths Uullcl states Ia t
be deducted by TIM payma5ter.
The collector may reQaEro retur
q I.n.4 q tat 90 N - q
or his deputy IN Iy if#ina . sit9 umpui
OF Income reported ii '.,a ms reasO
TO believe thHt tie sgm0 Is uuGerest
mated" If there Is Il leE4u,s OF r.
fusal to make retHTu, Ct Il TgtGt
70 fraudulent, the collector or Ills do
nty shall himself make t. list by exam
nation OF the person taxed or olA'
evidence. A nifty per cent. penalty
70 DO charged for neglect or refust
and ono hundred per cent penalty K
fraud.
A person may declare that he HI
not $4,000 OF Income liable to be a
sessed or that he hus pGld his !neom
tax elsewhere II the collector {
deputy ls convinced that the declare
ton is true, he may grant an exemI
tlon, n return Is increased by til
collector or deputy the person take
may offer proof that the Increase
unjust, but the officer will not
obliged to take the facts ehown a
- inclusive. aud II is within his discrc
n to eefuBe relief. An appeal from
decisl6n may be taken to the Com
s5ionef OF Internal Revenue.
n corporation does not file II
alemsnt fino Of ., 900 10 to be lev
on IT, and two per cent. mont
be charged O. iko tag due ua:l
paid.