The record-union., 1894-01-19
Bonds.
sneoial to the RrcoRn-uN1ox.


WASHINGTON, Jan. 1S.-The full text
of the internal revenue bill, including
the income tax, has been agreed upon by
the Democratic members of the Ways
and Means Committee. 1t is probable
the measure will be submitted to the
House tomorrow. As yet the details Of
the income tax have not been made pub
lie. The Associated Press is able. how
ever, to give very complete summary
Of the essential features of the tax as 1t
will be submitted to the House.
The bill provides for the income tax to
go into effect January l, 1895, and the
first collection on incomes will be made
July l, 1895. All classes of incomes are
included in the measure, and uniform
rate of per cent tax on incomes over
S4 600 is fixed. 1t is made obligatory on
all persons receiving individual incomes
OF over s., 800 TO make return TO the local
Collector of Internal Revenue. These re-
turns are gone over by the revenue col
lector and the taX-Iist made up of those
whose incomes exceed $4,000. There is
no tax levied on those making returns OF
above IS, 800 and under $4,000, but the
committee deemed 1t eXpedient TO leave
margin of $500 below the exemption
point. in order that returns might be sure
OF all subject to the tax.
liz case a person having an income
over s., 800 fails TO make a return II be-
comes the duty of the Revenue Assessor
TO make inquiry as To the amount OF the
PERSONS income. If the examination
discloses an income above $1,000 the IN
come is subjected TO twice the ordinary
tax and the party falling to make the re-
Ic nf PHI llai
ofense and made the subject OF a fine
and imprisonment. The main purpose
III framing the above provisions has been
to avoid the lnquiSltOrlal operation OF the
law. The committee believes II Will do
away with the necessity of having AS
SCISSORS prying into the private business
ol people unless 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
a great majority OF the clLlzenS Will not
have to make returns.
Provision is also made by which no in
formation can be made public as 10 the
details of incomes reported by citizens.
Any public or private person who di-
vulges any part OF information concern
ing incomes is made the subject of Grim
lnal prosecution with a heavy fine and
pen lty.
Particular provision is made for the
collection Of income tax due on salaries,
not only of officials, but OF salaried individ-
uals received from business firms, corpo-
rations, ETC. 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 retain 2 per cent. of all salaries
over the taxable amount. This per cent.
will be taken out of the salaries in bulk
at the last payment of the salary for the
year.
The tax upon corporations includes
every phase Of corporate stock. This tax
is general, and without the $4,000 eX-
emption allowed individual incomes,
provided that including the tax on cor
porate stock the corporation shall pay the
tax and deduct the amount from the divi-
dends 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 stock
holder, and pay the total to the Internal
Revenue Collector in the locality. Severe
penalties are provided for failure to make
proper reduction from dividends of
stockholders, or for failure to make re-
turn to the Revenue Collector.
The entire business oflevying and col
Iecfing the tax is placed in charge of the
Deputy Commissioner of Internal Rev
enue. Different revenue districts are
also provided with Deputy Collectors,
who will especially manage the collec-
ton of income tax. The measure as
finally agreed upon is detailed elabora-
ton of the'plau for the income tax pro-
posed some months ago by Hall of Mis-
souri,,