Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1894-06-27
FIFTY-THIRD CONGRESS-.
WASHINGTON, June 81.
SENATE.

AL dlueiluiucuJ pIOpoSCu Wy WI. HiiiStii
in relation to the income tax on corpo-
rations.
Mr.. Hill called attention to the dis
elimination made in the bill between
incomes from investments in corporate
property and incomes from other
sources. In the latter case exemptions
were made to individuals to the amount
of 81 900 but in the former case there
was no such exemption for the individ-
ual, who, if he had dividends to any
lesser amount, would have . per cent.
deducted from them. He would vote
for Mr.. Alisons amendment Ito eX-
empt corporations with capital of less
than 100000, if he could get no bet
ter, although that would not accom-
plish his own purpose. He asked Sena-
tor Vest if he had any suggestion to
make to cover that point.
Mr.. Vest said his idea of taxation was
that it should be on property, on in
comes and in proportion TO the protec-
ton which the government actually
gives to the citizen. The income tax
on corporations had been in the law of
1861 and was in the law of Pennsylva-
MIA to-day-requiring corporations 10
retain out of their dividends on stool:
and bonds the > per cent. tax, and to
pay it over to the government. The
committee had endeavored to simplify
the bill and to strengthen it by putting
the tax directly on the corporation, and
by allowing the corporation to adjust
its relations with stock holders.
Mr.. Vest quoted a speech of Senator
Sherman in 1871 stating that an in
come tax was the only tax that tended
TO equalize the burdens of the rich and
of the poor.
Mr. Allison remarked that he knew
perfectly well that perfect bill could
not be framed, but how could Senators,
he asked, justify themselves in making
an arrangement which exempted stock
holders with an income of $1,000 and
mulcting those stockholders whose tn
come did not reach 81 900?
Noticing that Mr.. Harris was stand
ing, rs if prepared to make motion,
Mr. Allison said "If the Senator from
Tennessee wants to move to lay my
amendment on the table, | will with
draw it."
"The Senator" Mr.. Harris said, "an-
ticipates my object. rose for that
purpose"
"Then withdraw il"
So Mr.. Allison's amendment was
withdrawn.
Mr.. Teller ridicule3 the sympathy
professed for the small stockholders
of corporations, and minated that it
was got up not in the interest of the
small stockholders, but of the large
ones. AS to railroad stocks, he said
that no poor wise man ever bought
them. They were not for investment
but for management. He hoped to
see the income tax become firm fix
turc in the monetary system of the
United States because ii was the most
equitable and just system for the col
lection of revenue that could be devised
by man.
Mr.. Perkins moved an amendment
providing that the income tax shall not
apply to savings banks which do not do
general banking business, but which
may have paid up capital stock that is
a special guarantee fund to all the de-
positors of the bank.
Mr.. Perkins appealed to Mr.. Harris
not to be so unjust as to move to lay
the amendment on the table.
1.-THE Senator from Tennessee" Mr.
Harris remarked, "has already heard
from the Senator from California and is
satisfied that the amendment should be
laid On the table" (Laughter).
Mr.. Perkins thereupon withdrew his
amendment.
Mr.. Smith then offered the amend
ment which Mr.. Vest had referred TO
half an hour before Ito exempt the div
idends of small stockholders and made
a short speech in favor of it. He was
rather puzzled by a question put TO
him by Mr.. Hunton as to whether, if his
amendment were agreed to, there would
be any large stockholders left, whether
they would not all divide up their
stock between wives and children, TN
Giles and aunts, nephews and nieces.
Mr.. Smiths answer was that, just in
the same way, men who desired 10
evade an income tax could divide up
their property among their relatives.
The amendment was, on motion Of
Mr.. Harris, laid on the the table, yeas,
81 nays, 24 The three populist Sen
ators-Allen, Kyle and PefIer-and the
democratic Senator from South Caro-
lina-Irby voted aye, and Mr.. Hill
no. Mr.. Smith did not vote.
Mr.. Hill renewed Mr.. Smiths amend
ment modified so as to limit it to divi-