Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-05-16

VINO VIII feel this section most koonly!
10 Andrew Carnegie. who holds mora
than 100000. 600 Steel bonds. which
heretofore have bsen exempt hom tax
ation.
Members Of the Vanderbilt family,
who hold large blocks of stocks OF the
New York Central and it, allied and
subsidiary companies, will be heatily
bit.
Representative Hull. who wrote the
bill. said that the committee could not
respect the promises made to one set of
investors by corporations and that tho
Interest on all bonds must be charged
ut the same rate that Is charged against
other sources Of revenue.
Therefore when Carnegie receives his
interest next year be will and that On.
Gle Sam has clipped OF substantial
portion Of his "nontaxable" income at
the same ratio that he has charged
John Smith and John Brown on their
salaries or the incomes ON their sala-
ries or the incomes on tLeir real estate
holdings.
Committees Theory.
The committee in preparing the bill
worked on the generally accepted the
DRY that direct tax is usually dis
tasteful to those assessed. and for that
reason as much as possible the tax
will be collected Mt the source.
The greater proportion Of incomes
which will fall under the new system
will come from corporations. and there
fore the new law will put 1t squarely
up to the officers Of corporations to de-
duct from the interest paid stockhold-
ers the amount which they owe the
government.
Here is an example of the manner in
which the holdings in corporations will
be assessed and taxed: At the end Of
the fiscal year the officers Of all cor
porauons will present to the internal
the names Of stock and bond holders
and the amount held in each name.
Attached to this will be a schedule
showing the earnings Of the corpora
ton and the interest that has accrued
to each stakeholder.
In every case where the interest pay
able to stock or bond holder amounts
to more than $4,000 and less than $780,
600 the treasurer of the corporation
will deduct per cent and mail to the
treasury department chcck for the
amount.
In the cases o. the larger stockhold-
ers. where they are liable to the tax Of
an additional 1. 2 or per cent. the
same course will be followed. When
the check reaches the stockho!der be
will find that his fiscal ARA ngements
have been attended to and that be has
been charged with the interest he owes
Uncle Sam in much the same way that
he might have been charged with a
special assessment Of one sort or an
other.
The officers Of every corporation will
collect the full amount and turn It
over to the government and will make
no deductions for the first $4,000.
which is exempted. except in the cases
where they are specifically requested
to do 50 by the individual.
Exceptions Not Allowed.
For example. II an individual had In
terest in the amount OF $4,000 coming
from two corporations he would have
total Of $4,000 in reality, but only
$4,000 Of this amount would be taxa
bic. The officers of the corporations
are not allowed by the law to make
any exception except when specifically
notified to do SO by the owner Of the
stock.
When the individual affected notifies
the corporation he Is also required by
law to notify the collector OF internal
revenue 80 that the original $4,000 may
be exempted for him.
In order to Offset abuses that might
arise under this system the collector
Of internal revenue will keep COM
prehensive checking system. The rec
ords Of his Office will show the names
and addresses Of every man and wom-
an in the country who has IN income
Of more than $4,000. together with the
manner in which the money is invested
and the rates Of interest 1t bears