The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1894-05-11
THE INCOME TAX.
AMENDMENTS ARE MADE IN 1Hf SENATE.
They Materially Modify tho Original Draft
of the Law.

from the committee on finance reported
the amendments on the income tax.
Sections 50, 60 and 81 are stricken
out and the following section substi-
tuted therefor: That there shall be
levied and collected tax of 2 per cent.
per annum on the net profits or income
above ordinary working or operating
expenses Of ali banks, banking institu-
tions, trust companies, saving inst'tu-
tions, fire, marine, life, and other in
surance companies, railroad, canal,
turnyike, canal, navigation, slack wa
ter, telephone, telegraph, express,
electric light, gas, water and street
railway companies, and all other cor
porations, companies or associations
loing business for profit in the United
States, no matter how created and or
ganized. That said tax shall be paid
On or before the iirst day of July in
Zach year; and if the president or other
chief officers of any corporation, COM
pany or association shall neglect or re-
iuse to fle with the collector of the in
tcrnal revenue district in which said
corporation, company or association
shall be located or engaged in business
'irmation, showing the amount of net
profits or income received by said cor
poration, company or association dur
ing the whole calendar year preceding
thc date OF filing said statement rs
hereinafter required, the corporation,
company or association making default
shall forfeit rs penalty the sum Of
81 900 and 10 per cent. of the amount
of taxes due for each month until the
same is pail, the payment of said pen
atty to be enforced Us provided i'll other
cases of neglect and refusal to pay
penalties and taxes under the internal
revenue laws. The net profits or in
come of all corporations, companies
amounts paid to shareholders and
bondholders or holders of certificates
of Indebtedness of any kind, or carried
to the account of fund, or used for
construction, enlargement Of plant or
any other expenditure or investment
representing the net profits made or
acquired by said corporations, compa-
nies or associations. That nothing
herein contained shall apply to States,
counties or municipalities; nor to cor.
porations, companies, or associations
organized and conducted solely foI
charitable, religious or educational
funds, or securities held ANY fidu
ciary or tr' for cho - 7'2eligious
OF educ. ,,..,~..,, 1aor to
such building and loan associations as
are organized under the laws of any
State or Territory or the District of
Columbia. which make loans only to
their shareholders to enable them to
provide for themselves homes"
There are % additional amendments
designed to remove certain objection
able features and lessen the stringency
of the law. Where u penalty is at.
tached in the case one renders fraudu-
lent return, the language has been
changed SO us to read "a wilfully or
fraudulent return; in case of failure
or refusal to make return the collector
is directed to make the list by the ex-
animation of tho person, etc, the
words "by the examination of his
books or accounts" being stricket out
In many places throughout the income
tax feature the present wording relates
to the acts of any ''person," and in
| other places the word corporation"
alone is used. These have been amend
ed SO as to include companies and as
| sociations. At the end of section 81,
which regulates the payment of the
tax by persons drawing salaries in ex-
cess of $4, 900, there has been added
the following provision: "Provided,
that salaries due to State, county or
municipal officers shall be exempt from
the income tax herein levied"
The section of the Revised Statutes
(3,176) which reads: THAT the col
lector or any deputy collector in any
district shall enter into and upon the
premises, if it be necessary, of any per-
| son therein who has taxable property,
and who refuses or neglects to make
| any return" ETC., has been amended
so rs to read: "That when any person,
| corporation, company, or association
| refuses" the collector or his deputy
| may make ont the return, the author
ity to enter upon the premises being
stricken out. The limit of the time
during which the tax shall be in opera
ton is fixed at from January, 1895, to
| January /, 1900. At the end of sec
tion 55, which relates to the method OF
computing and estimating incomes,
there has been added the following
provided, also, that in computing the
income OF any person, corporation,
company or association, there shall
not he included the amount received
from any corporation, company or as
| sociation as interest or dividends upon
the bonds or stock of such corporation,
company or association, if the tax of 2
| per cent. has been paid upon its net
profits by said corporation, company
or association as required by this act. .
From section 55, which describes
what shall be taxable, the following
clause has been expunged: "And the
share of any person in the gains or
profits of all companies, whether in.
corporatedNor partnership, who would
be entitled to the same if divided
whether divided or other wise, except
the amount Ct income received from
Institutions or corporations whose
officers. IA required by law, withhold
4 i ,pt6