St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1894-03-01
of this measure may prove instruct


i've:
The tax is two per cent. 1t is to be
levied on all incomes personal or other
wise of more than $4,000. II a man has
an income of $4,000 he will pay two
per cert. on $4,000, $4,000 being exempt
ed. The language of the bill is over
and above" $4,000
Incomes are to include the gains and
profits from all property, business, trade
or profession, interest received from
bonds, mortgages, notes and all other
securities; premiums on bonds, notes or
coupons; sales of live stock, vegetables
and all produce; all profits in business,
whether divided or not; profits on sales
of real estate purchased within the year
or within two wears of the time OF the
sale; interest accrued, whether paid or
not, if good and collectible; salaries, etc.
Deductions may be made for interest
received from United States bonds spec
tally exempted from federal taxation !;
necessary expenses in carrying on bust
ness interest due or paid within the
year or existing Indebtedness; national,
state, county, school or municipal taxes !;
losses by fire, shipwreck, or in trade, if
not covered by insurance or otherwise
COMPENSATED for; debts ascertained to
be worthless; farm produce consumed
by the family of the producer; income
from corporations on which the corpor-
alton income tax has been paid by the
proper officer thereof. Guardians may
deduct $4,000 from the income OF each OF
their wards, except where two or more
wards are comprised in one family and
have a Joint property interest In such
cases only $4,000 may be deducted from
the income for all. This last rule applies,
also, to families composed of husband
and wife, or one or both parents and
one or more minor children. No deduc-
ton is to be made for depreciation and
loss on real estate purchased within two
years. nor for expenditures on improve
ments of property.
Senator's, representatives, and all off,
GERS and employees of the United States
government receiving regular salary
of upward of $4,000 must pay an income
tax, which is to be deducted from their
pay by the disbursing officers.
Incomes are to be reckOned by the cal
endar year. The tax is due July LIST.
AS the act is intended to take effect Jam
uary 1st, 1895, no income tax will be
due until 1896.
All corporations or companies paying
salaries of more than $4,000 are required
to deduct the tax theretrom and pay 1t
over. All returns must of course be
sworn to, and penalties are provided tor
false swearing. The books of all bust
ness firms must be submitted to inspec-
ton at all reasonable times, for the pur-
pose Of verifying the returns made. Re
turns must be made annually of a. the
gross profits; (2) the expenses, exclusive
of interest, annuities and dividends; (3)
the net profits, including allowance for
dividends, etc; az the amount
paid III interest, annuities and dividends;
~ the amount paid in salaries of $4,000
or less; (6) the amount paid in salaries
of $4,000 or more.
The sweeping character of this in
come tax provision, and the compli
cations likely to arise in the attempt
to enforce it, may be easily compre-
hended by any intelligent school boy
It behooves the senate to lop off this
populist, but not popular, rider and
not take the heavy responsibility of
enacting such law.