Arizona republican., 1899-12-06
RECEIPT S273,4S4,573
Report of Internal Revenue Commis- sioner Places Costs of Collections at 1.6S Per Cent-Recommends Taxing Undivided Profits as Sur plus-Commercial Brokers Should Be Relieved.

George w. Wilson of the internal rev enue, in his report to the secretary of the treasury of the operations of his office fer the fiscal year ended June 30, 1899, shows that the receipts from all sources aggregated s273,4S4.573, an increase over the preceding year of $1O2, ,617 900, and an increase of s3,4S4.- 512 over the estimate of the commits sioner made one year ago.
 The total amount expended in the collection of revenues during the last fiscal year was $4,591,7 ,754 or 1.6S per cent of the collections. This percentage of cost is the smallest that has ever been reached in the history of the bu- reau. For the fiscal year 1898 the cost was 2.29 per cent of the collections. The estimated expenses for the next fiscal year are $4,S77,S4O, a slight in- crease over the last year.
 In addition to the statement of the receipts for the last fiscal year. figures are presented showing that the re- ceipts for the first four months of the current year amounted to S1O3, ,103, ,4S5, an increase over the receipts for the corresponding period last year of S9,S7S.307. While it may be possible. the commissioner says, that this large ra- tio of increase will be maintained dur ing the current year, he is of the opin- ion that it would not be wise to an- ticipate such result All things con- sidered, the commissioner estimates that the receipts from all sources for the present year will approximate S2S5, 0O0, which is about $11, ,5OO, 900 in excess of the receipts for the year closed June 30, 1899.
 The commissioner recommends amendments to the existing laws as follows:
 Amend the third paragraph of Schd- ule A, relative to bank checks, by add ing after the words "order for the pay ment of any sum of money the words ''or receipt given for withdrawing de- posits from banks other than savings banks
 
 viso of the war revenue act, by adding after the words that no stamp tax shall be imposed upon any uncom- pounded medicinal drug or chemicaT' the words except such as are sold un- der claim of patent, trademark or proprietorship."
 Amend section 13 by adding to the first proviso, after the words bonds, debentures, or certificates of stock or of indebtedness" the words "or any instrument, document, or paper of any kind or description whatsoever men, tioned in Schedule A of this act"
 Amend section 2S, act of June 13, 1898, relative to stamp tax on parlor car and sleeping car tickets, by provid- ing a penalty for failure to affix stamps.
 The commissioner recommends amendments to the war revenue act, providing that estates in this country of persons residing abroad at the time of their death shall be taxed the same as the estates of persons residing in this country. Several other amend ments to the law regarding the tax or legacies are suggested.
 It is further recommended that the law be amended so as to provide that undivided profits shall be considered as surplus in estimating the tax due from banks, the amount to be esti- mated by taking the average for the preceding year, provided that the word capital shall not be understood to mean money borrowed or received from time to time as deposits in the usual course of business from any person not partner of nor interested in the bank. association or firm"
 The commissioner says that he sees no special reason for singling out com mercial brokers and requiring a special tax from them, especially as the tax falls in the main on a poorer class of people. He recommends, therefore, that the tax on commercial brokers be repealed or that other classes of business, such as commission mer chants and real estate agents, be also required to pay special tax.
 It is further recommended that the law be amended so that all special tax stamps may be transferable from one special taxpayer to another to enable the successor in business to carry on business at the same place for the rest of the year under special tax stamp issued.
 The commissioner calls attention to the inadequacy of the salaries of col lectors of internal revenue, and fla vors an amendment to existing law so as to allow revenue agents $3 a day in lieu of subsistence. He also favors a law authorizing the redemption of ad- hesive stamps when presented in amounts of not less than $2 face value. Special attention is called to the need for an additional deputy commissioner, < and it is recommended that one be au- thorized at a salary of S4, 900 a year.