The state republican. (Jefferson City, Mo.) 1871-1896, 1894-01-25
TAX ON INCOMES.
The Bill for Raising Revenue by
Income Tax Completed.
1t is a Far-Reaching Measure, and is De.
signed, II Enacted Into Law, to Take
Eject January I, 1905 - Sum
mary OF It's Provisions.

/ "AsHlNGTON, Jan. lS.-Ihe wavSAnd
means committee has completed the in
come tax bill. The last work was done
to-day, and the bill is now in the hands
of the public printer. The substance
OF the bill Is as follows:
That from and after the ist day OF january,
1905, there shall be levied, collected and paid
annually upon the gains, profits and income of
J every person residing in the United States or
any citiIap g tho T.It.A States rcriding
abroad, derived In each preceding calendar
year, whether derived from any kind OF
property, rents, interest, dividends or
salaries, or from any profession,
trade. employment or vocation carried
on In tho United States or elsewhere. on
all dividends, annuitcs or interest paid by
corporations or associations organized for
| profit by virtue of the laws Of the United
states, or OF any state or territory, by means
| or which the liability OF the individual stock.
holders is in any wise limited. in cash scrip
or otherwise and the net income OF all such
corporations in excess OF In cash. scrip or
otherwise, and the net income from any other
sources whatever, tax Of per centum on the
amount so derived over and above "a ,OO0 and n
ike tax, snail be levied, collected and paid an.
nually upon the gains. profits and income from
| all property, and OF every business, trade or
| profession carried on In the United States by
persons residing without the United States
| and not citizens thereof.
/ nv thN HtIclH pTONlutu lOT small DC USSpSScu,
collected and paid upon tire gains. profits and
7 income for the year ending tho 3lst day OF De.
| celnher next preceding the time for levying,
collecting and paying said tax.
A SWEEPING MEASURE
Sec .. In estimating the gains, profits and
income OF any person there shall he included
oil income derived from interest upon notes
| bonds and other securities as profits realized
| within the year from sales OF real estate pur.
chased within tho year or within two years
| previous TO the year for which income is estl.
mated; interest received upon all not,e, bonds,
| mortgages or other forms OF Indebted.
ness bearing interest, whether paid or
| not, II good and collectablc. less the
interest which has become due from
said person during the year; the amount OF all
| premium on lOndS. notes coupons; tho
amount OF sales Of live stock, sugar wool but.
| ter cheese, pork beef. mutton or other meats.
! hay and grain or other vegetable or other pro.
| ductions being tine growth or produce OF the cs.
| tate OF such person. not Including any part
| thereof consumed directly by the family; nll
other gains, profits and income derived from
| any source whatever and tho share OF any per-
son OF the gains or profits OF all companies
| whether incorporated 'or partnership, who
| would ho entitled TO the same II divided
| whether divided or otherwise, except
! the amount Of income received from
! institutions or corporations whose Officers are
required by law to withhold per ccntum OF
| tHt uiNlu"NUS, interest, gains, or profits and
| incomes made by such institutions, and pay
| the same to tho ofllcer AUTHORISED to receive
| the same; and except that port ION OF the SALARY
or pay received for services In the civil trtli
tary, naval or other scrvite of the Csltcd
Z states, Including senators and represe statiycs
and delegates in congress, from which tho IN,
( has been deductctk and except that por,ion o
any salary upon which the cmpb over "a re
CURED by law to and doc ,withhorl the tax an,
| pays the same to the otficer authorized to re
, ceivc u.
And in addition to 81, 900 G, ;empt from incom
Tax ~ herein before pro- .ided, all national
state. county and municy oal taxes shall be dc
Quoted from the gains, profits or income OF tn
person who has ar tually raid tho same
whether such per on be owner. tenant o
inortsngor; loSssv, actually sustained durin!
| thc year uristay from fires shipwrcck or in
currcu IN srada and not covered by nsuranc,
or otherwise ompensatcd for and debts ascer
tanned to b. worthless. but including all es
tlhated dcg recitation OF values and losses with
| IN tne Schr on sales of real estate purchased
Two yearr previous to the year which incom,
| Is estiu iated. provided, that no deduction
| shall " made for any amount paid out for neN
bullp ngs, permanent improvements. or better
| mep ts made to increase the value OF any
| pre- ,perty or estate.
| Provided further that only ono deduction o
| $1,000 shall be made from the aggregate income
of all the members OF nny family composed o
one or both parents and one or more minor
children. OF husband and wife; that guardians
shall be allowed to make deduction of 81, ,0ot
In favor OF each and every ward except II
case where two or more wards are comprised
in one family and have joint property interest
tho aggregate deduction to their favor shal
not exceed si,0)).
| AS To FEDERAL EMPLoYEs
Provided further that In cases where the
salary or other compensation paid to any per
son In the employ or IN the service OF the
A,U0O per annum, or shall be by fees
uncertain or irregular In tho amount
/ or In the time during which the
same shall have accrued or boon earned, such
| salary or other compensation shall he included
! In estimating tho annual gains. profits or in
| come OF the person to whom the same shall
have been paid and shall include that portion
y Of any income or salary upon which u tax has
not bccn paid by the employer where the EN-
ployer is required by law to pay an excess over
sI,OJ0
Section provides methods and means for
the return or assessment of all incomes to be
taxed. Every person with an income OF moro
than $500 is required to render, on u blank to
he furnished by the government u fill state .
mcnt OF his income, gains profits for the
taxable year All guardians, trustees, exec
utors and receivers are required
to make returns for the persons for
whom they act. Persons having less than
$3.50 are not required to make report. All re
turns have to be verified by oath. Where the
party to be taxed falls to make return the
designated collector. who will be an agent OF
the United States commissioner OF internal
revenue, Is required to make out the list from
such facts as are available, and, after the tax
is assessed, to add 80 per cent. us penalty
Where u false or fraudulent return Is made Il
penalty OF 100 per cent is added TO the tax
Right is given to take oath that an income Il
not as much as $1,000 and II the deputy col
lcctor disaSrees and assesses the income, ap
peal is allowed 10 the collector of internal rev
cnue OF the district
| Where on this appeal q decision adverse tc
the applicant is reached, final appeal to the
United States commissioner OF Internal reve
nue. is provided for. Final provision OF this
section is that due notice shall be given TO de-
linQuents before an official assessment OF their
property is made and the penalty tax levied.
Sec. g. All the income taxes are to be due on
July OF each year. To all taxes OF which due
notice has been given, and which are not paid
for ten days after July |, u penalty OF per
cent OF the unpaid amount is added and there.
after interest at the rate OF per cent per
month from the time the tax became due
Estates OF deceased, insane or insolvent per-
sons are exempted from this penalty.
| NoH.REsIDEsrs MUST PAY UP.
Sec. g. Every nonresident person or cor
poration owning property in the United States
or receiving an income from the United States
shall pay taxes on incomes received Just as IL
resident in the United states. Provision for
the exemption OF incomes under 81 900 as ,well
as for taxation OF ofdelinquont taxpayers is same
us In cases Of resident citizens.
Sos. O. That there snail be collected a tax OF
per cent on all dividends in acrip or money
thereafter due. whenever the same be payable
to stockholders, policy holders, including non.
residents, whether citizens or aliens, as
part OF tho earnings, incomes or gains
OF my bank, trust company. savings
| institution, and OF any lire, marine, life or
other insurance company, whether specially
| Incorporated or existing under general laws,
and on all undistributed sums, made during
tho year to their surplus funds: and said