The morning call., 1893-12-24
HAVE STRUCK A ROCK.
Income Tax Causes the Stranding
of Committee.
There Are Many Opinions as to the
Proper Way of Settling the
Great Question.

Means Committee are at present stranded
upon the rock of an income tax. a part
OF the committee favors an individual tax,
while the remainder of the members are
strenuously advocating the imposition of
tax upon the net earnings OF corpora
tions and investments in bonds as sug-
gested by Secretary Carlisle. 1t is more
than. likely II vote should be taken at
the present time the individual tax propu-
sition would be carried by majority of
one or two members. Between the pres
ent time aud the next meeting of the CON-
mlttee. however, the members will give
the matter their careful attention and
when they meet again it is thought
they will be able TO come to some conclu-
sion.
The administration, and this means
especially the President, is understood to
be against Individual income tax. 1t
would not be surprising if in the course of
events the line should be drawn as clearly
between the administration and its oppo-
nents on this question as il was on the sill
yer fight. The Southern aud Western
members and Senators who believe in the
righteousness and necessity of an income
tax are as earnest as were the Democrats
who fought against the repeal of the Sher-
man law in the belief that such an action
would be death blow to silver. They will
make every effort to have the tax on in
dividual incomes imposed in the House.
They say that such legislation is de-
manded by their constituents; that they
have introduced bills looking TO that end
and nothing could make the Democratic
party more popular in the rural districts
than such a tax. They already regard the
coldnesS of the administration In this
direction as indicating the closeness with
W bich the President communes with Wall
street, and say, with some bitterness, that
although the administration carried its
point in the silver fight, 1t will find il
harder to control memb bers on the question
of an income tax.
The advocates of the position taken by
Secretary Carlisle are using every en-
deavor to bring their colleagues to their
opinions. The discussions in the com
mittee are said to have been quite ami
mated and have resulted in forcible ea-
preston of views. 1t has been argued
against an individual income tax that if
man receives a large salary it is ten
chances to one that he earns it by the ex-
to make a man suffer in proportion to the
amount of energy he displays or ability
which he possesses.
The incomes derived from the interest
On stocks and bonds are said to be the onlv
proper subjects of taxation, for the reason
that IL a man makes $4,000 year and
spends ii all he puts that much money
again in circulation. Ii he makes it and
invests it in business he is giving employ.
ment to others besides taking risks incl
dent to the trade. aud even if he puts it
into real estate he is made to bear heavy
burden which the municipality in which
he resides places upon landed property.
II is only when money Is invested in
bonds, it is asserted by advocates of this
especial form of taxation, that the owner
of money escapes his due proportion of the
burden.
"He is drone in the hive" as one of
the members of the committee said, ''sit-
ting down in idleness to cut off his cou-
pops-takiDg no risk. helping nobody.
Such a man ought to be taxed and taxed
heavily"
How far the majority of the committee
will be brought over to these views is
question which is, OF course, yet unsettled,
but an earnest endeavor will be made st
the next meeting Of the committee to Sc
cure favorable vote on the proposition to
tax the earnings of bonded wealth. Should
this be successful and the plan be ncor-
porated in the bill its advocates believe
that after thorough argument they can
convince the present supporters of an in-
diyidual income tax to abandon that idea.