214 



CONGRESS. (THE TARIFF BILL.) 



"SEC. 2804. T\"o cigars shall be imported unless the 

 same are puekecl in boxes of not more than five hun- 

 dml cigars in each box ; and no entry of any im- 

 ported cigars shall be allowed of less quantity than 

 three thousand in a single package ; and all cigars on 

 importation shall be placed in public store or Bonded 

 Avarehouse, and shall not be removed therefrom until 

 the same, shall have been inspected and a stamp af- 

 tixed to eaeh box indicat5n.tr such inspection, ami 

 also a serial number to be recorded in the custom- 

 hoiiM-. And the Secretary of the Treasury is hereby 

 aiithori/ed to provide the requisite stamps, and to 

 make all necessary regulations for carrying the above 

 provisions of law into effect." 



THE INCOME TAX. 



SKC. -27. That from and after the 1st clay of Janu- 

 ary. is'.if>, and until the 1st day of January, 1900, 

 there shall be assessed, levied, collected, and paid 

 annually upon the trains, profits, and income received 

 in the preceding calendar year, by every citizen of 

 the United States, whether residing at home or 

 abroad, and every person residing therein, whether 

 said gains, profits, or income be derived from any 

 kind of property, rents, interests, dividends, or sal- 

 aries, or from any profession, trade, employment, or 

 vocation carried o*n in the United States or elsewhere, 

 or from any other source whatever, a tax of two per 

 centum on the amount so derived, over and above 

 four thousand dollars; and a like tax shall be le\ led, 

 collected, and paid annually upon the gains, profits, 

 and income from all property owned, and of every 

 business, trade, or profession, carried on in the United 

 States by persons residing without the United States. 

 And the tax herein provided for shall be assessed by 

 the Commissioner ot Internal Revenue, and collected 

 and paid upon the gains, profits, and income for the 

 year ending the 31st day of December next preceding 

 the time for levying, collecting, and paying said tax. 



SKC. 28. That, in estimating the gains, profits, and 

 income of any person, there shall be included all in- 

 come, derived from interest upon notes, bonds, and 

 other securities, except such bonds of the United 

 States the principal and interest of which are, by the 

 law of their issuance, exempt from all Federal taxa- 

 tion ; profits realized within the year from the sales of 

 real estate purchased within two years previous to 

 tlu- close or the year for which income is estimated ; 

 interest received 'or accrued upon all notes, bonds, 

 mortgages, or other forms of indebtedness bearing in- 

 terest, whether paid or riot, if good and collectible, 

 less the interest which has become due from said 

 person, or which has been paid by him during the 

 year; the amount of all premium on bonds, notes, 

 or coupons; the amount of sales of live stock, sugar, 

 cotton, wool, butter, cheese, pork, beef, mutton, or 

 other meats, hay and grain, or other A'egetables or 

 other productions, being the growth or produce of 

 the estate of such person, less the amount expended 

 in the purchase or production of said stock or prod- 

 uce, and not including any part thereof consumed 

 directly by the family ; money, and the value of all 

 personal property acquired by gift or inheritance; all 

 other gains, profits, and income derived from any 

 source whatever, except that portion of the salary, 

 compensation, or pay received for services in the 

 civil, military, naval, or other service of the United 

 States, including Senators, Representatives, and Dele- 

 gates in Congress from which the tax has been de- 

 ducted, and except that portion of any salary upon 

 Avhich the employer is required by law to Avithhold, 

 and does withhold, the tax and pays the same to the 

 officer authorized to receive it. In computing in- 

 comes, the necessary expenses actually incurred in 

 carrying on any business, occupation, or profession 

 shall be deducted, and also all interest due or paid 

 within the year by such person on existing indebted- 

 ness. And all national, State, county, school, and 

 municipal taxes, not including those assessed against 

 local benefits, paid within the year, shall be deducted 

 from the gains, profits, or income of the person who 



has actually paid the same, whether such person be 

 owner, tenant, or mortgageor ; also losses actually sus- 

 tained during the year, incurred in trade, or arising 

 from fires, storms, or shipwreck, and not compensated 

 for by insurance or otherwise, and debts ascertained 

 to be worthless, but excluding all estimated depreci- 

 ation of values and losses Avithin the year on sales of 

 real estate purchased within two years previous to 

 the year for which income is estimated: Prnri,],;!, 

 That no deduction shall be made for any amount paid 

 out for new buildings, permanent improvement, or 

 betterments, made to increase the value of any prop- 

 erty or estate: Provided further, That only one de- 

 duction of four thousand dollars shall be made from 

 the Aggregate income of all the members of any 

 family composed of one or both parents, and one or 

 more minor children, or husband and wife; that 

 guardians shall be allowed to make a deduction in 

 favor of each ward, except that in case where two or 

 more wards are comprised in one family, and have 

 joint property interests, the aggregate deduction in 

 their favor shall not exceed four thousand dollars ; 

 A inl provided further, That in cases where the salary 

 or other compensation paid to any person in the em- 

 ployment or service ot the United States shall not 

 exceed the rate of four thousand dollars per annum, 

 or shall be by fees, or uncertain or irregular in the 

 amount or in the time during which the same shall 

 have accrued or been earned, such salary or other 

 compensation shall be included in estimating the an- 

 nual gains, profits, or income of the person to whom 

 the same snail have been paid, and shall include 

 that portion of any income or salary upon which a 

 tax has not been paid by the employer, where the 

 employer is required by law to pay on the excess over 

 four thousand dollars: Prodded also, That in com- 

 puting the income of any person, corporation, com- 

 pany, or association, there snail not be included the 

 amount received from any corporation, company, or 

 association as dividends upon the stock of such 'cor- 

 poration, company, or association, if the tax of two 

 per centum has been paid upon its net profits by said 

 corporation, company, or association, as required by 

 this act. 



SEC. 29. That it shall be the duty of all persons of 

 lawful age, having an income of more than three 

 thousand" five hundred dollars for the payable year, 

 computed on the basis herein prescribed, to make and 

 render a list or return, on or before the clay provided 

 by law, in such form and manner as may be directed 

 by the Commissioner of Internal Revenue, with the 

 approval of the Secretary of the Treasury, to the col- 

 lector or a deputy collector of the district in which 

 they reside, ot the amount of their income, gains, and 

 profits, as aforesaid; and all guardians and trustees, 

 executors, administrators, agents, receivers, and all 

 persons or corporations acting in any fiduciary capac- 

 ity, shall make and render a list or return, as aforesaid, 

 to the collector or a deputy collector of the district in 

 which such person or corporation acting in a fiduciary 

 capacity resides or does business, of the amount of in- 

 conic, gains, and profits of any minor or person for 

 Avhom they act; but persons haying less than three 

 thousand five hundred dollars income are not re- 

 quired to make such report; and the collector or 

 deputy collector shall require every list or return to 

 he verified by the oath or affidavit of the party ren- 

 dering it, and may increase the amount of any list or 

 return if he has reason to believe that the same is 

 understated; and in case any such person having :i 

 taxable income shall neglect or refuse to make and 

 render such list and return, or shall render a willfully 

 false or fraudulent list or return, it shall be the duty 

 of the collector or deputy collector to make such list, 

 according_to the best information he can obtain by 

 the examination of such person, or any other evi- 

 dence, and to add fifty per centum as a penalty to the 

 amount of the tax due on such list in all cases of will- 

 ful neglect or refusal to make and render a list, or re- 

 turn ; and in all cases of a willfully false or fraudu- 

 lent list or return having been rendered, to add one 







