Democratic Sentinel, Volume 18, Number 2, Rensselaer, Jasper County, 26 January 1894 — INCOME-TAX PROVISIONS. [ARTICLE]

INCOME-TAX PROVISIONS.

Features or the BUI as Agreed To by tho Ways and Means Committee. The income tax bill, as agreed upon by the Democratic membors of the Ways and Means Committee, provides that the income tax is to go into effect Jan. 1, 1895, the first collection to he July 1, 1895. All classes of incomes are included in the measure and the uniform rate of 2 per cent, tax on incomes cf over $4,000 is fixed. It is made obligatory on all persons receiving individual incomes of over $3,500 to make a return to the local collector of internal revenue. No tax is levied on those miking a return of under $4,00 ‘. In case a person having an income of over $3,500 fails to make a return it becomes the duty of the revenue assessor to investigate, and if this examination discloses that the income is above $4,000 it is subjected to twice the ordinary tax under the law, and the party failing to make his return is subject to fine and imprisonment. Provision is also made by which no information can be made public as to the details of the income reported by citizens. Any person who divulges auy part of this information is made subject to criminal prosecution, with heavy fine and penalty. Particular provision is made for tho collection of the tax due on salaries—not only officials, but of individuals—received fiom business firms, corporations, etc. The individual receiving the sa'ary does not pay the tax, but it is made the duty of every Government, State, County, and municipal disbursing officer to retain 2 per cent, of all salaries over the taxable amount. The tax up-* on corporations includes everv phase of corporate stock. The tax is general, and it is without the $4,000 exemption allotted to individual incomes. It is provided the corporation shall pay the tax and deduct the amount from the the stockholders. Severe penalties are provided for all failures to do this. The entire business of the levying and collecting of the tax is placed in charge of a deputy commissioner of internal revenue. The different revtenue districts of the country are also provided with deputy collectors, who will especially manage the collection of the income tax.