The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-05-05
A NEW INCOME TAX BILL.
The Senate Committee Makes ImpOr-
tant Changes in The First One.

I
and a New One Substituted-Th
Life of the Law Limited to Five
Years From January Next-The Tax
Payable On or Before July in Each
Year A Total of Twenty-four
Amendments Reported.
Washington, May 4.-Mr Vest, from
the Senate committee on finance, this
morning reported the committee amend
ments on the income tax bill, which are
as follows:
Sections SO, GO and 81 are stricken out
and the following section substituted
| therefor. THAT there shall be levied and
| collected a tax of 2 per cent. per annum
on the net profits or income above the or
binary working or operating expenses Of all
banks, banking institutions, trust compa-
nies, saving institutions, fire, marine, life
and other insurance companies; railroad,
canal, turnpike, canal navigation, slack
water, turpentine, telegraph, express,
! electric light, gas, water and street rail
way companies and all other corporation
companies or associations doing business
for profit in the United States, no matter
| how created and organized
DATE OF PAYMENT.
"That said tax shall be paid on or be-
| fore the first day Of July in each year,
and if the president or other chief officers
| of any corporation, company or assocla-
| shall neglect or refuse to file with the
| collector of the internal revenue district
| in which said corporation, company or as
I sociation shall be located or engaged in
! business, a statement verified by his oath
/ NJ a f1sVrn = ffnp h1ra YtVafv flaa
| of net profits or income received
| by said corporation, company or associa-
! tiOn during the whole calendar year pre-
| ceding the date of filing said Statement
! as herein required, the corporation, com
| pany or association making default shall
| forfeit as penalty, the sum of 81 900 and
10 per cent. of the amount Of the tax due
for each month until the same is paid,
the payment of said penalty to be en-
forced as provided in other cases Of
neglect and refusal to pay penalties and
taxes under the internal laws.
WHAT PROFITS SHALL INCLUDE.
"The net profits or income of all cor
porations, companies or associations
shall include the amounts paid to
shareholders and bondholders, or holders
of certificates of indebtedness of any
kind or carried to the account of the re-
serve fund, or used for construction, en-
largement of plant, or any other eXpendi-
ture- or investment representing the
profits made or acquired by said corpora
tion, companies or associations
THAT nothing herein contained
shall apply to states, coun-
lies or municipalities; nor TO
corporations, companies or associations
organized and conducted solely for chari-
table, religious or educational purposes,
nor to the stocks, shares, funds or secur-
tiles held by any fiduciary or trustee for
charitable purposes; nor TO such building
and loan associations as are organized un-
der the laws of any state or territory, or
the District of Columbia, which make
loans only to their shareholders to en-
able them to provide for themselves
homes"
| TwENTY-THREE OTHER AMENDMENTS.
There are twenty-three additional
amendments designed to remove certain
Objectionable features and lessen the
stringency of the law Where a penalty
is attached in the case one renders a
fraudulent return the language has
been changed so as to read "a wilfully
false or fraudulent" return. In case of
return the collector is directed to
make the list by the examina-
tion of the person, etc, the words "by
the examination Of his books or accounts"
being stricken 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 altered so as TO include COM
panies and associations.
AT the end of section 81, which regu-
lates the payment of the tax by persons
drawing salaries in excess Of a, 900, there
has been added this provision: "Pro-
vided that salaries due TO state, county
or municipal officers shall be exempt
from the income tax herein levied"
ENTRY OF PREMISES
The section Of the revised statutes
3176) which reads: 'That the collector
or any deputy collector in any district
shall enter into and upon the premises If
it be necessary, of any person therein
who has taxable property and who re-
fuses or neglects TO make any return "
etc, has been amended so as TO read
"That when any person, corporation, com
pany or association refuses" the collec-
tor or his deputies may make out the re-
turn, the authority to enter upon the
premises being stricken out.
The limit Of the time during which the
tax shall be in operation is fixed at from
Jan j. 1895, to Jan. !, 1900. AT the end
of section 55, which relates TO the method
of computing and estimating incomes
there has been added the following
provided, also that III computing the in
come of any person, corporation, com
pany, or association, there shall not be in
cluded the amount received from any cor
poration, company or association as inter
est or dividend upon the bonds or stock
Of such corporation, company or associa-
tion, if the tax of 2 per cent. has been
paid upon its net profits by said corpora
tion, 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 com
panies. whether Incorporated or partner.
ship, which would be entitled TO the same
dividend, whether divided or otherwise
except the amount of income received
from institutions or corporations whose
officers. as required by law, withhold a
per centum Of the dividends, interest
gains, profits and income made by such
institutions or corporations and pay the
same to the officer authorized 10 receive
the same"