The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1894-01-19
Complete Summary Of the Essential
Features OF the Income
Tax Bill.
A Uniform Two Per Gent Tax on
Incomes in Excess of
$4,000.
About $4,000 Persons In the Country
Affected by n. and They Can
Afford 60 Fay.

WASHINGTON. Jan. 15.-The full text Of
the internal revenue BILL including the in
come tar. has been agreed upon by the
demoofatio members Of the ways aud mean .
COMMITTEES. ID is probable the measure will
be submitted 10 the house morrow. As
yet the details OF the income tsH have not
been made public. The Associated press ia
able. however. 20 give a very oomplete sum-
mary OF the essential features Of the tax a.
ID will be submitted TO the house. The bill
provides that the income tax shall go into
effect Jan. /, 1895. and the first collection
on incomes be made July l, 1896. All
GLASSES of incomes arc included IN the
measure. and the uniform rate Of two per
cent tax on incomes over q. 900 is fixed.
II is made obligatory on all persons re-
oeivinR individual incomes Of over 50. 800 10
IN Ike return 10 the local collector of in
tsrnAl revenue. These returns are gone
over by the revenue collector and a tax list
made up OF those whose incomes exceed
81, 600. No tax is levied on those making
return OF above $3 800 and under 81 600
but the committee deemed IL sxpedient 90
leave margin of $500 below the sxemp-
iion point ia ovder that returns might be
sure of all subject 10 the tax.
In case q person having an inc ONE Of
over S3 800 fails 10 make return, il bsoOmas
the duty Of the revenue assessor TO make
Inquiry as 20 the amount of the person s
income. II the examination disoloses an
income Of above 81, OO0 the income is sub
iected 10 twice the ordinary tax, and the
party failing 20 make return is deemed
guilty OF an original offense. aud made sub
ieot 10 fine and imprisonment. The main
purpose In framing the above pro visions
has been to avoid the inquisitorial op era
tion of the law. The committee believe II
will do away with the necessity of having
assesGors pryinR into ths private business
of people. unless the latter have a taxable
income and Try TO eVade the law. IL 10 es-
timated that not more than g. 600 persons
will be the subject OF this tax. so that a
great majority Of citizens will not have to
make returns.
Provision is also made BY which no in
formation can be made public as 10 the de-
tails Of income reported By citizens. Any
/ public or private person who divulRes any
/ part of the information concerning in
comes is made subject 10 criminal proseeu-
tion, with a heavy fine and penalty. Par.
ticular provision Is made for the collection
Of the income tax due on salaries. not only
/ Of officials, but salaries of indiyidu
received from business firms, oorpoFations
etc. The individual receiving the SALARY
does not pay the tax, but IL is made tn
duty Of every government, state, countJ
| two per cent Of all salaries over ths taIabl,
amount This two per cent can be taker
on, IN bulk a. the last payment Of salary
/ for ths year.
The tax upon corporations includes evsTy
phase Of corporate stock. Ibis tax is gen
eral and without the $4,000 exemption al
| lOtted Individual incomes, provided that
including the tax on corporate stock. a cor
poration shall pay the tax and deduct the
amount from dividends OF the stoekholder.
10 is made the duty of each corporation tc
take two per cent of each annual corporate
income from the amount set apart fol
stockholders and pay the total 20 she in
ternal revenue collector of the locality.
| Severe penalties are provided for failure
10 make the proper deduction from divi-
dends of stockholders. or for failure q
make return TO the revenue collector. Th'
entire business of levyinR and collectinE
the tax is placed IN charge Of the deputl
commissioner of internal revenue. Differ
ent revenue districts are also provided with
deputy collectors who will especially man
age the collection Of the income tax. Thl
measure. as finally agreed upon. is a de-
tailed elaboration Of the plan for an in
come tax proposed some months ago b.
Hall, of Missouri.