Democratic enquirer. [volume] (M'arthur, Vinton County, Ohio) 1867-1873, 1870-04-20
The Next Income Tax.

unconstitutional income tax,
with this modification only:
"That, after the year 1870, there
shall be levied and collected tax
Of three per centum on the several
incomes, dividends and salaries de-
seribed in the proceeding section o
this joint resolution, and in the
mode and manner heretofore provi-
ded by law"
The tax will, for 1870, be
three per cent, while the bal
ance ofthe swindle allows the
following deductions, if there
is any truth at all in the Con-
gressional declarations. Tax
payers read carefully: Section
III. And be it further enacted,
That in estimating the annual
gains, profits, and income of
any person, all municipal taxes
paid within the year shall be
deducted from the gains, prof
its, or income of the person
who has actually paid the same,
also the amount paid for the
rent of the homestead used or
occupied by himself or his fam
lily, and the rental value of any
homestead thus occupied by
himself or family, in his own
right or that of his wife, shall
not be included and assessed as
part OF the income of such per-
son for each year,
Now, there is not the slight
est doubt. as to the spirit and
letter of the law, as conveyed
in the following language: In
estimating deductions from in
come, as aforesaid, when any
person rents buildings, lands,o
other property, or hires labor
to cultivate land, or to conduct
any other business from which
such increase is actually deri.
we'd, Or (here the paragraph
breaks, having disposed of that
character of deductions which
are allowed in the shape of in
terest paid on loans to conduct
business upon, and passeeS to
another species Of deductable
INTEREST," pays interest up
on an actual incumbrance there
on (buildings, land, or other
property the amount actually
paid for such rent, or for labor,
or for interest, shall be deduct
ed We contend, that Com
missioner Delano is entirely
wrong in his construction Of
the law, when he refuses to al
low the interest paid on the
homestead mortgage, mortgage
given for the balance of pur-
chase money, as one of the de-
ductable tax items. It would
seem,in the face of the fact that
he does allow the rent to be
deducted, that the absurdity of
refusing to allow the deduction
of homestead mortgage inter
est, unpaid purchase money,
which is but rent also, would
be glaringly apparent to him
But to make the case of the
taxpayers who refuse to accept
Commissioner Delano's con-
struction ofthe law still stron.
ger, the paragraph of the Sec
tion touching deductions goes
on thus: But no deduction
shall be made for any amount
paid out for new buildings,
permanent improvements, or
betterments, made to increase
the value of any property or
estate
The law does not say that
the interest of mortgages on
homesteads for purchase mon.
ey shall not be deducted, but
it does say what else not be;
as above.
Commissioner Delano has
construed this law, as his party
construe the Constitution; he
acts under implied powers
He has, unlike his predecessors
in the Office he holds, adopted
the rule of exacting taxes in all
cases wherein he is not special
ly prohibited from so doing
He acts under implied powers
and he chooses to decide as tc
the extent Of those implied
powers. There 10 such an utter