The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-12-24
INCOME TAX LAW.
Its Constitutionality TO Iie Put TO Test.
New York bankers Bring the Test suit


Its constItutionaIity TO Be Put TO Test.
New York bankers Bring the Test Suit
WAsHISoToS. Dec. 22.-The first steps
have been taken in the district supreme
court TO test the constItutiOnality OF the
income tax law.
Yesterday Jeremiah Wilson, as coun-
sel for John G. Moore, Of the New York
banking firm of Moore & Schley, APP
piled to Judge Cole, OF the equity
branch OF the supreme court oil the Die
trict OF Columbia, for an order restrain
ing Joseph S. Miller, commissioner Of
internal revenue, from assessing aud
collecting tax upon his income.
Because OF the importance OF the ac-
tion it 10 expected that the court will
fix an early day for the hearing.
This is only one OF number OF legal
attacks that will soon be made here
upon the income tax, and each suit will
be based upon different grounds. The
moving parties are New York business
men. II 10 the intention OF a number
OF these individuals to refuse to pay the
tax and appeal to the courts in each
case.
Mr.. Moore's complaint in detail sets
out his case under six heads and his
prayers under fonr. Among the
prayers are-that the complainant is O
shareholder in divers corporations, or
ganized, existing and doing business in
the United States, under and by virtue
of their respective act Of incorporation,
and which said corporations have net
earnings from which they pay diVi-
dends to the complainant and also to
the other stockholders, from which net
earnings there will be paid to the COM
plainant during 1891 divers sums OF
money as such dividends.
That independent Of, and in addition
to these dividends, the complainant has
an income derived from the gains and
profits OF his business, and embraced
within sections 27 and 2S OF an act of
Congress, entitled "An act to reduce
taxation, to provide revenue for the
government, and for Iother purposes"
tthe present tariff act), which becomes
law without the approval OF the Pres.
ident, largely In excess OF the sum OF
s., 900 per annum, and upon which in
come. including the dividends before
mentioned, the defendant, commits
sioner OF internal revenue, has threat
ened to, and unless restrained by this
honorable court will proceed to assess the
sum OF 9 per cent on the amount OF
YOUR compIainants' income in excess OF
$4,000 per annum.
The complainant further shows to the
court by references TO section 80 OF said
act OF Congress that the corporations
bereinbefore referred to are also re-
uuired to pay tax OF 2 per cent on
their net earnings, without regard to
any dividends paid out OF said net earn.
ings, and by sections q and Is Of said
act the complainant 10 required to pay
like tax upon the said inoneya-so paid
to him as dividends, thereby wrong.
fully duplicating the tax on the COM
piainant, aud by reference to section 27
OF the act the complainant shows to the
court that said taxation is unjust and
unequal in that it discriminates against
the complainant, for the purposes OF
taxation, between persons who are citi-
zens OF the United States, and wholly
exempts such persons from taxation as
aforesaid who have an income to any
amount up to and not In excess OF the
sum of $1,000 per annum, aud thereby
the omplainant and all others in the
same condition. is denied the equal
protection Of the law.
BY reference to sections % and % 1t is
shown to the court that there is assocl-
ated with the taxation OF citizens OF the
United States and subject to the pro-
posed taxation and not separable there
from, the provision that the persons
who are aliens hut who reside in the
United States, whether permanently or
only temporarily, shall likewise be sub.
iect to the payment Of the income tax,
although such income is derived wholly
from rents, interests. dividends, sal
aries or from any profession, trade, em-
ployment or vocation carried on else.
where than in the United States, thus
undertaking, unlawfulIy and without
authority, to tax the incomes OF citizens
OF foreign countries alien to the United
States a temporary residence for tenn
porary purposes, although such incomes
are derived wholly from sources not
within the jurisdiction OF the United
States.
The case will probably be brought up
for trial in tho equity court before
Judge Cox or Judge Hagner early in
July.