The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-05-09
INCOME TAX AMENDMENT.
Senator Vest Submits the Change
Agreed Upon.


not change the tax of per cent. nor the
amount at which incomes should be sub
ject to taxation, leaving it at $4,000 and
upward. The object of the amendments
is to relieve individual investors in cor
porations of tn charge where their net
incomes do not exceed $4,000. but TO have
the profits of the corporations taxed. 1t
is also proposed to eliminate the alleged
inquisitorial features of the income tax.
Instead OF compelling the individual to
exhibit his books and papers the assessor
may estimate the amount of the income,
and the person so assessed may appear
and prove that he has been assessed too
high If such is the case. The changes in
detail are: Secs SO. so ard 81 are stricken
out and the following section substituted
therefor:
That there shall be levied and collected a
tax of per cent. annually on net profits
or income above ordinary working or oper-
ating expenses Of all banks, banking IN
stitutionss trust companies. saving insti-
tutions. hre, marine, life and otner nsur-
ance companies, railroad, canal, turnpike,
canal navigation, slack water, telepnone'
telegram, telegraph. express, electric light
gas, water, street railway companies, and
all other corporations or associations doing
business for profit in the United States, no
matter how created and organized. that
said tax shall be paid on or before the 1st
day OF July, in each year; and II the presl-
dent or other chief officer of any corpora
ton, company or association shall neglect
internal revenue district in which said cor
poratlon, company or association shall be
ment, verified b. his oath or affirmation.
showing the amount Of net profits or In
come received by said corporation, company
or association during the whole calendar
year preceding the date Of filing said
statement as hereinafter required, the cor
poration, company or association making
default shall forfeit as a penalty the sum
taxes due FOR each month until the amount
enforced as provided In other cases Of neg
lect and refusal 70 pay penalties under the
income" of all corporations, companies or
associa tions shall include the amount paid
TO shareholders and bondholders or holders
OF certificates Of Indebtedness Of any kind
or carried TO the account Of any fund or
used for construction, enlargement of
plant. or any other expenditures or invest
ment representing the net annual profits
made or acquired by said corporation, COM
pauy or association Nothing herein con-
tained shall apply to states, counties or
municipalities, nor to corporations, COM
panies or associations organized and con-
Quoted solely for charitable, religious or
educauonaI purposes nor 10 me STOCKS,
shares, funds or securities held by any
m!uucl4Iy OF u9stets Lor chaTltaDie' re-
ng1ous or educational purposes; nor 70 such
building and loan associations as are or
ganized under the laws of any state or ter
rltory or OF the District of Columbia, which
make loans to their shareholders TO enable
them TO provide for themselves homes.
The above is submitted for sections
SO, go and 81 of the tariff bill. in which
sec. 50 provided for levying per cent
on banking and like corporations. Sec
so provided how the tax on such institu-
tions should he levied and collected. Sec
81 provided for the per cent. tax upon
the interest of stocks, dividends or
profits of railroad, telephone. gas and
like corporations and provided how it
shall be collected.
Other amendments insert the words
"wilfully" in providing a penalty for
false statements, as, for instance in
sec. 56, where a penalty of so per cent.
is added for false statements. This is.
Of course, intended TO prevent the in
Fiction of penalties in case of uninten-
tional false returns. It also deprives the
revenue agent of the privilege Of exam
lining the books or accounts of persons
accused of making false returns and re-
strictS the examination to the person
himself. In the main the amendments
put corporations. companies or associa-
tions upon the same level as individuals
giving them the privilege Of proving
the amount Of income when the state
ment of income has been increased by
the revenue agent. 1t also gives the cor
porations, companies and associations
the rights granted to individuals TO ap-
peal from the deputy collector and from
the collectors decision to that of the
commissioner of internal revenue. It
relieves them from the assessment of
penalties as it does individuals except
upon reasonable notice of the time and
place of hearing. The salaries of state,
county and municipal officials are re-
lieved from the operations of the pro-
posed tax law. The amendment provid-
ing for the time limitation of the opera
tion Of the act is made in sec. 81 and
provides that the levying of the tax
shall begin on Jan. l. 1895, and end Jan.
1. 1900.
An important amendment is made to
sec. So, which is as follows:
Provided. also. that in computing the in
come of any person, corporation company
or association there shall not be included
the amount received from any corporation,
dividends upon the bonds or stock Of such
corporation, company or association If the
tax of per cent. has been paid upon its
net profit by said corporation. company or
association as required by this act.
The clause in paragraph 55 requiring
estimates to be made upon the shares of
persons in the gains or profits of COM
psnies in levying the income tax is
stricken out.
The intention of these amendments is
to prevent double taxation upon incomes
received from corporations.
Amendments are made to Sec 65, pro-
viding for returns of corporations so as
10 include companies and associations
and place them upon the same terms
under the law as corporations.
It has been considered probable that
in the course of this session of the house
there might be an attempt to attach to
enc of the appropriations an amendment
providing for the repeal of the sugar
bounty clause of the Mckinley act.
There has been hesitation about this
matter among the democratic members
as it might be taken as an indication
that they had some doubts about pass
ing the tariff bill in the senate. Today
Mr.. Dockery introduced the following
| resolution. which was referred to the
committee on rules:
Resolved, That the committee on ways
and means is hereby directed to prepare
in connection with the legislative, execu-
| tive and judicial appropriation bill as fol-
| lows
That so much of the act entitled IAN act
to reduce revenue, equahze duties and for
| other purposes" approved Oct. l, 1890 as
| licenses TO produce sugar and for the pay
ment Of a bounty TO the producers of
sugar from beets, sorghum or cane grown
/ in the United States or from maple sap
| same IS hereby repealed TO take effect
| July l. 1894, and thereafter IL shall be un-
/ lawful TO issue any license to produce
sugar or TO pay any bounty for the produc-
i ton of sugar of any kind, under the said
| act.
Senator Jones of Arkansas said today
| that he hoped to be able tomorrow to
i follow up Senator Vests presentation OF
the proposed changes in the income tax
| with the amendments which are to be
made TO the tariff rates in the bill. The