Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-11-17
INTERNAL REVENUE INCOME
RECEIPTS WE'RE OVER $40, 900 MORE
THAN WAS ESTIMATED.
n n
Percentage of co.tiof Collection Was
the Smallest In the History
OF the s1sSe Service.

JllI-
The annual report of the commissioner of
internal revenue for the fiscal year ended
June 80, 1900, shows collection exceeded
out once in the history of the bureau. The
receipts were $2a1, 3fS, 1O7, being S10,316.107
IN excess OF the estimated amount, and
s2I.s3l,o34 more than during the previous
year. Inc percentage of cost of collection
was Los as against Les for last year, be-
ing the smallest in the history of the in
ternal revenue service
Commissioner Wilson estimates that the
receipts from all sources of internal reve-
nue. Tor the current fiscal year will approx
mate S235, ZOO. eco
An important feature of the report con-
sists Of a number of amendments recon-
menoed TO be made to the war revenue act.
Ihe clause of the law which perhaps has
given more trouble in its administration
than any other is that which requires a tax
OF ~ cents on a certificate of any de-
scription required by law not otherwise
specified in the act" 1t is recommended
that this paragraph be abolished. The
greater part of such certificates. says the
report, are necessarily issued by federal,
state or municipal officers and the internal
revenue bureau has ruled that where such
certificates Were issued in the exercise of
functions strictly belonging to state in its
ordinary governmental or taxing capacity
they We're exempt from tax In number
of states, however the officers have MAIN
tanned that all certificates issued by them
were exempt because required by state
laws. and have declined to affiX stamps.
receipts given for Withdrawing deposits
from banks other than savings banks, says
the report. should be taxed Receipts do
not require a stamp under the law, and 1T
was found impossible to rule that when a
depositor went to a bank personally and
withdrew his deposit or a portion of it by
rendering receipt for the same that such
receipt was any more taxable than any
other receipt. AS a result the use of re-
ceipts in lieu of bank checks in this manner
iS constantly increasing. "Of course"
says the report, this is an invasion of the
tax. but to evade the tax in a lawful man.
ner cannot be prevented
1t Is recommended that where any one
Instrument is In form that combines the
characteristics of two more instruments
1t shall be subject to but one stamp tax,
and that the highest imposed upon either of
the instruments.
Tux on Proprietary Medicines.
There have been found upon the market
large number of medicinal prepa rations
which have been held by the United States
courts to be exempt from taxation under
the clause exempting uncompounded chem
icals, which are nevertheless put up under
patent or trademark for which propre-
tary rights are claimed. 1t Is believed, says
the report, that Congress intended to tax
all patent. proprietary or trademark me-
dfcinal preparations alike and it is recon-
mended that the law be changed so as to
effect this end. --
recommendation is made that any in
strument, document or paper Of any de-
scriptiOn mentioned in schedule A which
has not been stamped without intention to
evade the law be permitted to have the
same remedial rights as other papers There
does not now exist any penalty for failure
to- affix stamps to parlor and sleeping car
tickets and this 1t, is, said should be RENE
died. al =
LexacynTax.
It is recommended that the law he
changed In regard to legacy taxes SO as to
reach the estates of alien property holders
who reside Abroad Agricultural affairs
sheuld be- exempted from taxation. 1t is ad-
vised that either the tax commercial
brokers be repealed or else others In the
same class OF byIsiiiess be included In It's
provisions. The Jaw also should be, changed
50 as to permit the transfer Of special tax
stamps from one taxpayer to another to
enable the successor to carry ON the bust
ness. f'.~--- --.
A number Of other amendments, looking
to the administration OF the law in regard
to distflIers, tobacco manufacturers. etc.
are included In the report. Attention Is
called to the lack OF protection given by
the statute to Internal revenue officers in
the discharge Of their duty and increased
penalties recommended where MUIR
derous assaults are made upon them. Con-
gress is asked to establish a new scale of
salaries for collectors which will justly COM
perSate them for increased responsibilities
and services. A similar recommend ton Is
made with regard to revenue agents.
Source Of Revenue.
The receipts from the various sources dur
In, the year were: Spirits s1O9, SIS, SIT, an
increase Of SO. $50 2S;,; tobacco, 80 800 0S4,
increase, S. s61 $40: fermented liquors. s73.-
80 7J4 increase IS)6. 1876; oleomargarine
s2.543 Is5. increase. 1851 1856; filed cheese,
$l7,06i, decrease. s1,03:s; mixed flour s7439,
decrease S40l: other special taxes includ-
ing theaters, &c, $4.5l5 $40 decrease, $4o6,-
80; legacieS and dStributve shares of per-
scnal property, $2,SS5, 431. increase. 81 3d.
crease 81, S73, 4a3; miscellaneous, s2,921, de-
crease, 81, 100.
During the year there were fewer Illicit
stills destroyed than in any of the three
preceding years. which. says the report is
exceedingly gratifying, especially when
taken in connection with the fact that dur
ing the last few months in some of the sec
lions of the country where Illicit spirits
have been produced distilled spirits have
brought better prices than for many years.
Attention Is called to the fact that in COM
munities where Illicit distiIIing prevails
it has been found that the violators of the
law are not confined to the unregistered
Illicit distilers alone, but embrace in many
sections large number Of registered dis
tillers, who are driven to this course in
self-protection to meet the competition
forced upon them by Illicit dstillers who