The herald., 1894-05-05
THE INCOME TAX.


Senator Vest Offers Amendments to the
Wilson Bill.
WASHINGTON, May 4.-Senator Vest
today offered amendments to the income
tax feature of the tariff bill, the object
of which is to relieve individual invsst-
ors in corporations and have tha profits
of corporations taxed. Instead Of COM
pelling an individual TO exhi5it his
books and papers the assessor may esti-
mate the amount of his income, and a
person 40, assessed may appear and
prove that he has been assessed too
high, if such be the case.
The changes in detail are: Sections
10, 60 and 81 are stricken out and the
following sections substituted therefor:
"That there shall be levied and COL
lected tax OF 2 per cent per annnm on
the profits or incomes over the ordinary
working or operating expenses of ali
banks, banking institutions, trust COM
panies, savings institutions, fire, marine,
life and other insurance companies;
railroads, canal, turnpike. canal naviga-
tion, slack water, telephone, telegraph,
electric light, gas, water and street rail-
ways companies and all other corpora
tions, companies or associations doing
business for profit ia tho United States,
no matter how created or organized.
"That said tax shall be paid on or be-
fore the first of July in each year, and il
the president or other chief officer of
any corporation, company or association
shall neglect or refuse to file with the
collector of internal revenue of the dis
triet in which said corporation, company
or associ alton shall be located or en-
gagged in business, a statement verified
bv his oath or affirmation, showing the
amount, net profits or income received
by said corporation, company or associa-
tion during the whole calendar year pre-
ceding the date Of fling of said state
ment as hereinafter secured, the corpora
ton, company or association making
default shall forfeit az a penalty the sum
OF $1,000 and 10 per cent of the amount OF
taxes due for each month until the same
is paid, the payment OF said penalty TO
be enforced as provided III ether cases
of neglect and refusal to pay penalties
and taxes under the internal revenue
law.
"The profits or incomes OF all cor
porations, companies or associations
shall include the amounts paid to share
holders or holders OF certificates OF inu
debtedness of any kind, carried on ac-
count of any funds used for construction,
enlargement of plant or any other ex-
penditures of Investment, represented
in the net annual profits mado or ac-
quired by said corporation, company or
association.
"That nothing herein contained shall
apply to states, counties or municipal
tiles, nor TO corporations or asso-
Citations organized and conducted
solely for charity, religion or education
al purposea, nor to the stocks. shares,
funds or securities held by any judiciary
or trustee for charitable, religious or
educational purposes, nor to such huild-
ing or loan associations as are organized
under the laws of any state or territory.
or of the District of Columbia, which
make loans to their shareholders, TO en-
able them to provide for themselves
komes."
The above ia substituted for sections
50, go and 81 of the tariff bill, in which
section 80 is provided for, levying q :
per cent tax on banking and like corpor-
ations. Section 60 provides how the tax
on such institutions should be levied
and collected. Section 81 provides for a
per cent tax on interest on stecks,