The Indianapolis daily herald., 1865-11-09

The Nashville Gazette. 90 the subject Of tar
-

The Nashville Gazette. on TIE subject Of tax
ing Government bonds, says:
The Memphl. Argus Of October 18th advo
Gates the right and expsdiency Of State tar on
the income OF Government bonds in the hands OF
the citizens. Let us see What il would amount
to. b. holds bonds to the sum of $40 900, the
iocome OF which, Al per cent, IA $500, upeu
which. under the present revenue la-. he would
pay Federal tax. B. having $50 900 in bonds
might be taxed by Congress on $500. Welding 10
the Government. per cent. $50. c. has
land worth $4,000. for which he pays the
GOVERNMENT 800 His land is taxed BY the State
say per cent. amounting to $500. Adding Ia
this the Federal tax of $50, We have $3.50 tax
paid by G. II the State should also impose q
tax upon the income OF the bonds. A, who is
worth just as much as { will pay SIS, while B .
worth twice a. much "a Z paws sj6. So il i
seen that tax upon income from bonds will dc
very little toward equalzng the burden or filing
the State Treasury The Argus tells us that the
only Limitation 70 the power OF state taxation is
10 The tenth section FL the frat article OF the Fed
eral Constitution II so then Why not tax A :.
and Bs property In bonds, we'll as C's laud
There is certainly nothing 10 tina, section to for.
bid such taxation
1--WE greatly regret however, that our re.
spected contemporary = inaccurate in this state
ment ofthe The OF Congress author.
izlng the issue OF Treasury notes, approved 25tt
February. 1862. places further limitation upon
the power of State taxation, iH providing that
"al stocks, bonds, and other securities OF the
| United States held by individuals, corporations
or associations, within the United States, shall
be exempt from taxation by or under State au.
thority." If this enactment is constitutional
aud it seems TO be so accepted, the State cannot
tax the bonds as 40 much property: and we have
seen that a tax upon the mere income will pro-
| duce very little revenue. And even the power
TO tax the income has been questioned and not
/ yet settled. The Constitution of Tennessee re
quires taxes 10 be uniform. otherwise the ine-
quality might be cured BY laying heavier tax
on income from bonds Ii an on that derived from
other sources. As il il, the States are helpless
and Congress hardly in 4. better condition. The
exemption from State take has become a vested
right OF the bondholder. aud the courts would
deny the constitutional pow of Congress toide-
stroy or impair II We zee no remedy for the
gross In ustce OF the case other than by revolu-
tonary action on the part OF the suffering people
OF the whole country
The swindling folly OF Republican legislation
in this matter, ought 10 make that party yer,
dear to the masses of the people. Thi. bushes,
OF exempting property from taxation has got to b,
looked to by the people. before long. Church pro.
perty in this city to the value. we should think
OF nearly halt million of dollars; also of Ma
sons, Odd-Fellows, schools, &c, &c, is exempt
| How can what is left bear all the burdens oil
debt and wasteiul government aud city expenses
which are laid upon usg The bond-holders
when agreeing to fund at a lower rate of interest
had better agree. also, TO be taxed. We think so