The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-23


washington Dec. s2.AToday Jere-
1rsiah Wilson, counsel for John g.
Moore, of the New York banking firm
of Moore & schley, applied to Judge
Cole. Of the equity branch OF the SUI
preme court of the District of Column
bia, for an order restraining john S.
Miller commissioner of the Internal
revenue, from assessing and collecting
tax upon his income. This is only one
of a. number of legal attacks which
will soon. be made upon.the income tax.
each suit being based on different
grounds.
MIR. Moore's complaint in detail sets
out his case under six heads and his
prayers under four. He represents;
First-That he is a citizen of the
United States and of the state OF New
York, residing and doing business in
the city of New York, and brings this
suit in his own right.
Second-That the defendant. Joseph
S. Miller, is also citizen of the United
States, occupying and discharging the
duties Of the office of commissioner of
internal revenue and as such is sued.
Third-That the complainant is a
shareholder in divers corporations, eX-
listing and doing business in the United
States under and by virtue of their
respective acts of incorporation and
which said corporations have net earn
ings from which they pay dividends to
the complainant and to the other
stockholders from which net earnings
there will be paid the complainant dur
ing the year 1895, divers sums of money
as such dividends.
Fohrth-That independent of, and in
addition to these dividends, the COM
plainant has an income derived from
gains and profits of his business and
embraced within sections q and 90 of
an act of Congress entitled "fAn act to
reduce taxation, to provide for the
government and for other purposes -
(the present tariff act which became a
law without the approval of the presi-
| dent Of the United States, largely in
excess Of the sum of $4,000 per annum.
and upon which income, including the
/ dividends before mentioned, the de-
fendant, commissioner of internal rev.
enue, has threatened to, and unless re-
strained, will proceed to assess the sum
OF z per cent. on the amount of your
compliments income in excess of 81. O0O
per annum.
Fffth-The complaint further shows
by reference to section 90 of said act
OF Congress-, that these corpora lions
are also required to pay a tax of 2 per
| cent: on their net earnings without re,
| gard to any dividends paid out of said
net earnings and by sections 81 and %
! OF said act, the complainant is required
| 10 pay little tax upon the said money
| so paid to him as dividends, thereby
Wrongfully duplicating the tax on the
complainant. And by reference to sec
ton q Of the act the complainant
shows to the court that said taxation
is unjust and unequal in that it dis
cr1mlnates against complainant for the
purpose of taxation, between two per,
sons who are citizens of the United
States and wholly eXempts such per,
sons from taxation as aforesaid who
nave an income to any amount I'D tc
and in excess of the sum of 1000 pei
annum, and thereby your complainant
and all others in the same condition
Is denied equal protection of the law
Further, by reference to sections q
and 2S 1t is shown to the court thai
there are associated with the taxation
of the citizens of the United States
and subject to the proposed taxation
and not separable therefrom the pro
visions that the persons who are no
aliens but who reside in the United
States, whether permanently or only
temporarily, shall likewise be suojec
to the payment of the income tax, al
though such income is derived wholly
from rents, interests, dividends, sala
r1es or from any profession, trade, EN-
ploymenS or vocation carried on else
where than in the United States thu.
undertaking unlaWfully and withor
authority, to tax the incomes of citi
zens of foreign countries alien to tn
United States who have within tn
United States a temporary residenc
for temporary purposes, although
their incomes are derived wholly from
sources not within the jurisdiction o
the United States
No exemption is made in the act from
taxation of the incomes of corporation
) within the United States, of which Their
are many which. although carried on TO
profit, are created, owned and operate
: by the several states as government in
2 struments in the promotion Of the polio
f and other public functions Which corpora
: tons are not subject to taxation by tn
United States. 1t is also shown that as
sessments are to made upon the income
of the c. mplainant and others that ha
l been carr ed and received prior to tn
e time the pI DIVISIONS of the act took effec
: and that the said taxes are not with
the constitutional jurisdiction of Congress
! TO impose.
Sixth-It is also alleged that the con
missioner is taking steps to make an a.
! the act and to collect not only for tn
! first years income subjected to taxatio
but also by the requirements of the az
1 for incomes hereafter to arise yearly an
e continuously until 1900 The commi
), sioner and his subordinates are now tai
\ ing the nee essary steps to make the a!
u sessments and collections of the incon
S taxes. 1t is averred that if the tax
o are collected, although unlawful and III
e just the complainant would have r
4 remedy to recover from the United State
= or only by long litigation, rendering Il
= remedy useless. The act, it is charges
is invalid in the provisions so imposir
S the income tax and in such pr
e visions. is unconstitutional inoperatiJ
and void; if the taxes are collected
g would be without adequate legal remed