The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-01-24
THE INCOME TAX.
Democratic Members Agree On n
Bill.

Bill.
WASHINGTON, Jan. 1S-The fun
text of the internal revenue bill, inelud-
ing the important income tax portion,
has been agreed upon by the demo-
cratic members of the ways and means
committee. 1t is probable that the
measure will be submitted 10 the house
tomorrow.
AS yet details of the income tax. as
finally agreed upon. have not been made
public. The Associated Press is able.
however. TO give a very complete sum-
mary of the essential features of the tax
as it will be submitted TO the house.
The bill provides that the income tax
is TO go into effect Jan. 1. 1895. and that
the first collection on incomes is to be
made on July l. 1895 All classes of
incomes are included in the measure.
and the uniform rate Of per cent. tax
on incomes over $1,000 is fixed.
The most important detail of the bin
is the method provided for the levy
and collection of taxes. 1t is made OBJ
hgatory on all persons receiving indi-
vidual incomes of over $500 To make
returns to the local collector of internal
revenue These returns are gone over
by the revenue collector and a taxable
list is made up of those whose incomes
exceed $4,000. No tax is levied on those
making a return of about $500 and un-
der $4,000 but the committee deemed il
eNpedient 10 leave this margin of $500
below the exemption point in order that
the returns might be sure to show all
who are subject to the tax.
Penalties Attached.
In case a person having an income Of
over S3.5O0 fails To make ii return it be-
comes the duty of the revenue assessor
to make inquiry as to the amount of
the persons income. If this examination
discloses that the income is above 81 loo,
the income is subjected to twice the or
binary tax under the law. and the party
failing to make his return is deemed
guilty Of a criminal offence and is
made subject to fine and imprisonment.
The man purpose in framing the above
provisions has been To avoid an in
quisitorial operation Of the law The
committee believes that it will do away
with the necessity Of having assessqTs
pry into the private business of people
unless the latter have a taxable income
and try to evade the law. 1t is esti-
mated that not more than $4,000 persons
will be subject to this tax. so that a
great majority Of citizens will not have
to make returns.
Provision is also made by which no
Information can be made public as to
the details of the income received by
citizens. If such details become public
II might injure the credit OF a firm OF
, individual. For that reason any public
or private person who divulges any part
Of inf
is made subject To criminal prosecution
with heavy fine and penalty.
Particular provision is made for the
collection Of the income tax due salaries.
not only official salaries, but the salaries
of individuals received from business
firms. corporations. etc.
The individual receiving the salary
does not pay the tax. but il is made the
duty Of every government, state, county
and municipal disbursing officer to re-
tain per cent Of all salaries over the
! taxable amount. This per cent. is to
be taken out IF the salaries in Dulk at
the last payment Of salaries for the
year.
| The tax upon corporations includes
every phase of corporation stock. This
tax is general and is without the $4,-
| 600 exemption allowed to individual in
comes. 1t is provided that in collecting
the tax on corporate stock the corpor-
alton shall pay the tax and deduct the
amount from the dividends of the stock
| holder 1t is made the duty of each cor
| poration to take per cent. of each an
nual corporate income from the amount
set apart for each stakeholder, and pay
the total to the internal revenue col
lector of the locality. Severe penalties
are provided for failure to make the
proper reduction from the dividends Of
stockholders or for failure to make the
return to the revenue collector
The entire business of the levying and
collecting of the tax is placed in charge
Of a deputy commissioner Of internal
revenue. The different revenue districts
of the country are also provided with
deputy collectors who will especially
manage the collection of the income tax.