The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-12-04
THE INCOME TAX.

The Quest on ns 20 tho Con titutionniity Of
the LAW be Tested in tn, supro
Court.
WASHINGTON, Dec. 3, 1870.
The appeal taken by the Secretary OF the Treasury
in the case Of the Philadelphia ana Reading Rail-
road vs.. Barnes, the Collector OF Internal Revenue
at Philadelphia involving the validity OF the colec
ton OF tho income tax since the 1st OF January,
1870 Will be pressed for the early consideration OF
the United States Supreme Court, and on Tuesday
next when the docket Is called at the beginning OF
the new session Of the court Solicitor General Brsow
win ask that the appeal taken from the decision OF
Judge Strong in this case SHALL for important rea-
sons receive the earliest attention Of The Court The
amount of tax indirectly involved is little less than
six millions of dollars But even should the Supreme
Court sustain the decision Of Jusuice Strong and
declare the collection OF the income tax for this
year Illegal Congress has but to re-enact the
law In SPECIFIC terms, and cover by Its
legislation at the coming session the
amount already collected. In other words, instead
OF refunding the taxes collected, it win enact that
the taxes paid and unpaid shall be paid. thereby
holding In the possession OF the government what
ever has been received, while internal revenue OIL
GERS Will have authority to compel the deiinquenE
and those companies that have refused TO pay the
a penalty cannot, in TINS case be enforced
for negectIng TO comply ,,, with the law as
Supreme Court will speedily dispose OF the question
that 1t VIII be urged for . hearing without delay SO
as to enable Congress enact Whatever law may be
necessary under the circumstances. In regard to
the proposed retroactive legislation, IL Will be re-
membered that Congress has already passed several
such laws, anu tine right 10 do 50 has never
been controverted by the Supreme Court.
The Solicitor General says That he has
cases against the United States and is fortified with
arguments TO enter upon the discharge OF this his
Delano. in his report as Commissioner Of Internal
Revenue. alludes TO this subject and says that as
early as January 1870 he called the attention Of
to the antiquities OF the law then in
force and the difficulties likely TO arise
asked legislation upon the subject. Not only did he
anticipate the obstacles that would arise, but re-
psaedly by letters and In person, urged upon Sen
ator sherman and Representative Schenck the ne
cesslty Of settling the question promptly. On the
New York wrote to the First Comptroller Fer In
structicns whether he should retain the tax on sala
ries as during the year 1859. Fang to GET
Finance or the chairman Of the Committee OF
Ways and Means, the Comptroller conferred with
| Was discontinued Not only was Assistant Trea-
surer FOger instructed, bu, ON the 18TH OF Janu
/ instructed by Commissioner Deano that the
tax imposed upon divicends, &c, should
Dent, G through its responsible officials, having
insisted upon the collection OF such taxes. VIII now
the instructions given, ana the refusal or Con-
gress 10 take cognizance OF the subject until later
date VIII be construed Us Implying that no
legislation was necessary. The fact that there
was reasonable doubt as to the authority
sanction by the opinion OF Justice Strong
WILL in the future argument OF the CASE involve the
right OF Congress TO consrue It's own laws. II the
Supreme Court shall declare that powers are uncon
stltutionay exercised, and that the law authorize
Ing the collection OF taxes on incomes, dividends,
&c expired on the 3st OF December 1869, then
Congress VIII undoubtedly impose tax for the time
the law has been enforced IN 1870. thereby accom-
pshlng by new legislation what was neglected at
It's last session.