Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1894-01-27
THE INTERNAL REVENUE BILL
Summary of the Leading Features
of the Measure.
Income Tax to Go Into Effect January
!, IS95-First Collection To he
Made July I. 1s95--Penalties
for Violation.

WASHINGTON. Jan, l9.-The full text
Of the internal revenue till. including
the important income tax, has been
agreed upon by the Democratic mem.
bers of the ways and means committee.
The following is summary OF the es.
sential features of the tax:
The bill provides the income tax is to
go into effect Jan. /, 1895. and that the
first collection OH incomes is to be made
on July ], 1895. All classes of incomes
are included in the measure and the uni
form rate Of 2 per cent tax on incomes
over s. 900 is fixed.
The most important text Of the bill is
the method provided for the levy and
collection of taxes. Ii is made obliga-
tory on all persons receiving individual
incomes of over g. 500 to make return
to the local collector of internal revenue.
These returns are gone over by the rev.
enue collector and tax list is made up
Of those whose incomes exceed $4,000.
No tax is levied on those making a re-
turn of above $4,000 and under $4,000,
but the committee deemed it e1pedient
to leave this margin Of $500 below the
exemption point in order that the re-
turns might b. sure to show ali who are
subject 10 this tax.
Heavy Penalties For Violations.
In case person having an income OF
over IS, 800 fails 10 make return, 1t be-
come the duty of the revenue assessor
to make irQuiry as to the amount OF the
persons income. IL this examination
dscloses the income is above $4,000, the
income is subject TO twice the ordinary
tax under the law, and the party failing
to make his return is deemed guilty OF a
criminal offense and is maze subject to
fine and Imprisonment.
Tie main purpose in framing the
above provisions has been to avoid an
inquisitorial operation OF the law. The
committee believes it will do away with
the necessity of having assessors prying
into the private business of people un-
less the latter have taxable income and
try to evade the law. 1t is estimated
that not more than $1,000 persons will
be subject to this tax, so that great
majority Of citizens will not have to
make returns.
Provision is also made by which no in
formation can be made public as TO the
details reported by citizens. II such de-
tails should become public it might in.
lure the credit of firm or individual.
For that reason any public or private
person who divulges any part of this il
| formation concerning incomes, is made
subject to criminal prosecution, with
heavy fine and penalty.
Particular provision is made for the
collection of the income tax on salaries,
not only of officials but The salaries OF
| individuals received from bust ness firms,
corporations, etc.
| individual Does Not Pay the Tax.
The individual receiving the salary
does not pay the tax, but it is made the
duty of every government, state, county
and municipal disbursing officer to re.
tain per cent of ali salaries over the
taxable amount. This pnr cent is to
bs taken out of the salaries in bulk at
the last payment of salary for the year.
The tax upon corporations includes
| SNcIN HidoC VI ctoSh' Ab'1
.ax is general and it is without the
$4,000 exemption allotted to individual
me tax on corporate stock, the corpora
ion shall pay the tax and deduct the
amount from the individual stockholder.
Il is made the duty Of each corporation
% take 2 per cent of each annual cor.
,orate income from the amount set
spart for the stockholder and pay ths
otal to the internal revenue collector in
hat locality. Severe penalties are pro.
1ded for failure to make the proper re-
luction from the dividends OF stock.
loldera or for failure to make the re.
urn TO the revenue collector. The busi-
Tess Of levying and collecting the tax is
'laced in charge Of deputy commits.
ioner of internal revenue. The differ.
Mt revenue districts of the county and
ountry are also provided with deputy
ollectors, who will especially manage
he collection of the income tax.