The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-19
TAXATION OF INCOMES.
Al Persons Receiving Over $4,000
Per Year Must Report.

ftI lIuI muOb hbpOAis
,.,r1a Taxation and Fine and I'm
~-;sonment the Penalty for Failure
- Report Incomes of over $4,000.
criminal Prosecution for Divulgence
- Returns Provided For-The Tax
on Salaries and Corporations.
washington. Jan 1s.-This was the day
s,o5 last week by the majority of the
s,-Drnittee on ways and means on which
rsnort to the House the internal reve-
No Hill but up to this evening it had not
soon finally put in shape for presentation.
gg9anrasantatives McMillin and Bryan
boIe been revising the text and expect
he able to have it COM
uI.ted. for the consideration of
.bsir associates tomorrow morning.
Should their expectations be realized, it
I'll he reported to the House before the
o5-ournment for the day. One of the mem
Lars of the committee who is in favor of
beincome tax provision, says the settle
rent of the question, whether or not it
nboI he proposed as an amendment to the
customs bill now pending, will be left to
5anocratic caucus. He expressed a con-
Tiction that the caucus will order it to be
made part of the measure now being con-
sdered.
N 20 into effect on Jan. l, 1895, and that
the first collection on incomes is to be
made on July l, 1895. All classes of in
comes are included in the measure and
the uniform rate of 2 per cent tax on
iii incomes over 81. 900 is fixed. The most
imnortant detail of the bill is the method
nr5vided for the levy and collection of the
taxes 1t is made obligatory on all per-
sons receiving individual incomes of over
$4,000 to make a return to the local col
iector of internal revenue.
GONE OvERB THE COLLECTOR.
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 above $500 and under 81, 900,
Int the committee deemed it expedient to
leave this margin of $500 below the ex-
emption point in order that the returns
might be sure to show all who are subject
to the tax.
ncase a person having an income of over
$500 fails to make a return, it becomes
the duty of the revenue assessor to make
inquiry as to the amount of such persons
income If this examination discloses
that the income is above a, 1000, the in
come is subjected 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 made subject to
fine and Imprisonment.
PURPOSE OF THE PROVISIONS.
The main purpose in framing the above
provisions has been to avoid an inquisito-
rial operation of the law. The committee
believes that it will do away with the ne
cessity Of having assessors pry into the
private business of the people unless the
Of n f1stT fC
evade the laws, 1t is estimated that not
more than $4,000 persons will be subject
TO this tax, so that great jority of the
citizens will not have to make returns.
INFORMATION TO BE KEPT SECRET.
Provision is also made by which no in
formation can be made public as to the
details of the income reported by citi-
zens. If such details become public it
might injure the credit of a firm or indi-
Vidual. For that reason any public or
private person who divulges any part of
this information concerning incomes is
made subject to criminal prosecution,
with heavy fine and penalty. This pro-
vision is in line with the English law
oflS57 Prior to that time the British
income tax was very unpopular
because it made public the details of pri-
vate business. But after the law of 1857
was passed there was little further OBJ
IeCllOu 10 Lne TAX.
THE TAX ON SALARIES.
Particular provision is made for the
collection of the income TAX due on salar-
les, not only official salaries but the sal
aries of individuals, received from bust
ness firms, corporations, etc. The indi-
Ndual receiving the salary does
not pay the tax but it is
made the duty of every government,
state, county and municipal dlsbursing
officer to retain per cent. of all salaries
over the taxable amount. This ? per
cent Is to be taken out of the salaries in
bulk at the last payment of salary for
the year and not at the end of each week
or month. This avoids the complexity
which would result from taking out a
portion OF the salary each week or month.
THE TAX ON CORPORATIONS.
The tax upon corporations includes
every phase of corporate stock. This
tax is general and is without the 81. 600
exemption allowed to individual incomes.
1t Is provided that in collecting the tax
On corporate stock, the corporation shall
pay the tax and deduct the amount from
tne dividends of the stakeholder. This
ooVlates the necessity of Loving taxes
upon the army of corporate stockholders
throughout the country and restricts
the business of the government to deal
~ Win Ghe corporations. IL is made the
uuty OF each corporation to take per
cent OF each annual corporate income
rom the amount set apart for each stock
noIder and pay the total to the internal
revenue collector of the locality Severe
penalties are provided for failure to make
lIe proper reduction from the dividends
OF stockholders, or for failure TO make
lle return to the revenue collector.
me entire business of the levying and
0lIecting of the tax is placed in charge
VI deputy commission of internal reve-
uue' The different revenue districts of
tne country are also provided with deputy
coMHectors, who will especially manage the
collection of the income tax.