Omaha daily bee., 1894-01-19
now THEY WILL WORK 1T.
Details OF the Proposed Bill Taxing
Individual Incomes.

Details OF the Proposed Bill Taxing
individual Incomes.
WASHINGTON, Jan. ls.-Tne full text Of the
internal revenue bill, including the i'm
portant income tax, has been agreed upon
by the democratic mem bers of the ways and
means committee 1t IS probable the
measure will be- submitted to the house
tomorrow. AS yet details Of the income
tax, as finally agreed upon, have not been
reported. The Associated press is, however.
able TO give a very complete summary OF the
essential features of the tax as it will be
submitted TO the house.
The bill provides that the income tax is to
go into effect January /, 1s95 and that the
first collection on incomes is to be made on
July !, 1895. All classes Of incomes are in
cluded in the measure. and the uniform rate
of > per cent on incomes syer 81 900 is fixed.
The most impoTta mt text Of the bill is the
method provided for the levy and collection
OF taxes. Il is made obligatory on all per-
sons receiving individual incomes OF over
$500 TO make return to the local collector
of internal revenue. These returns are
gone over by the revenue collector and tax
list Is made up of those whose incomes ex-
ceed $4,000. No tax IS levied on those max
ing return of above $500 or under -, 600,
but the committee deemed il eXpedient TO
leave this margin of $500 below the exemp-
tion point in order that the returns might
be sure TO show all who are subject TO the
tax.
In case person having an income of over
81, 800 fails TO make a return, II becomes the
duty OF the revenue assessor to make in
quiry as TO the amount of the persons in
come. If this examination discloses that
his income is above S4 900 the income is sub
1ect 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.
The main purpose in framing the above
provisions has been TO avoid an inqulsitorial
operation OF the law. The committee be-
heves it will do away with the necessity of
having assessors prying into the pri-
vate business OF people unless the lat
ter have taxable income and try
to evade the law. 1t is estimated that
not more than $1,000 persons will be subject
TO .his tax, so that great majority of citi-
zens will not have TO make returns.
Provision is also made by which no in
formation can be made public as TO details
reported by citizens. If such details become
public il might affect the credit of tlrm
or individual 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.
Particular provision is made for the col
lection of the income tax due on salaries, not
only of officials, but the salaries of indi-
viduals received from business firms, cor
porations, etc.
HOW IL VIII Be COHected.
The individual receiving the salary does
not pay the tax, but il is made the duty of
every government. state, county and munich
pal dis bursting officer TO retain per cent Of
all salaries over the taxable amount. This
per cent is TO be taken out of the saiaries
in bulk at the last payment of salary for the
year. The tax upon corporations includes
every phase of corporate stock. This tax is
general, ana it Is without the 81, 600 exemp-
tion allotted TO individual incomes. 1t is
provided that, including the tax on corporate
stock, the corpora tion shall pay the tax
and deduct the amount from the dividends
of the stockholder. 1t is made the duty
of each corporation to take 2 per cent of
each annual corporate income from the
amount set apart for the stockholder and
pay the total to the internal revenue col
lector in the locality. Severe penalties are
provided for failure to make the proper re-
duction from the dividends of stockholders
or for failure TO make the return TO the
revenue collector The end of business of
levylng and collecting of the tax is placed in
charge of deputy commissioner of internal
revenue. The different revenue districts of
the country are also provided with deputy
collectors, who will especially manage the
collection of the income tax.
The measure as finally agreed upon is
detailed ella aboration of plan for an income
tax proposed some months ago by Repre-
sentative Hall Of Missouri.