Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-12-28
NEVER BE COLLECTED
The Probabilities in Regard to the Income
Tax Provision.
1t is Expected That 1t VIII BE Re-
pcaled and Possibly before 1t
Becomes Due.

1t Is probable that the income tax will
never be collected This probability is not
dependent upon the defeat in the Senate
of the appropriation to carry the law into
effect. 1t is recognized that there is dan
ger that the opponents of the law may de-
feat the appropriation in the Senate. 1t
is settled that there will be a vigorous
and determined fight to do this. But the
success of a movement of this sort is too
uncertain to he calculated upon and may
be regarded as a possibility rather than .
probability. What seems probable is that
before the tax is collected the law may
be repealed. Under the terms of the act
the limit of time within which the tax
must be paid is June 80. 1t is not proba-
DIE that any one Will pay the tax before
the expiration of this time, especially as
the constitutionality of the Law is about
to be tested. The treasury, therefore, can
rot count upon deriving any revenue from
this source during the present fiscal year.
Heavy Deficiency in Revenue.
Meanwhile there is a heavy deficiency in
the revenue. which, while it may be i'm
proved somewhat by the growth in the
whisky tax after the first of the year, Is
certain to leave the treasury in an en-
barrassed position financially There is
very little prospect that any legislation
such as Secretary Carlisle has recommend
ed can be got through both houses of Con-
gress. And II it were it would hardly af-
feet the income of the treasury. There
fore the treasury will probably be so sit
uated before any revenue from the income
tax can he secured that some measure to
supply the deficiency will have to be de-
vised Twice this has been done by an
issue of bonds. The weakness of the mar
ket for government bonds in New York
at this time gives reason to believe that
II at any time soon the treasury should
~ N rnHr r.
mediately raising money it would be found
very difficult to dispose of bonds at any
price at all advantageous to the govern
ment: In all probability, therefore, relief
Will nave TO come from Congress-
An Extra Session Threatened.
Very few people, If any at all, expect any
complete Legislation at this session. and il
is regarded as pretty nearly sure thing
that the Fifty-fourth Congress will be
called together shortly after the close of
this session. 1t is stated that leading
democrats in Congress have been warned
by the administrator that if no financial
measure was passed this extra session
would be called. If this alternative is
actually presented the Fifty-fourth Con-
Gress viii be in session months before the
usual December meeting. The demand for
action is expected to become more urgent
week by week, and If anything is to be
accomplished by call of the next Con-
date, probably within a month after the
adjournment of this Congress.
Repeal Expected.
One of the conditions that will surely be
exacted by the opponents of the income
tax before agreeing to permit any other
legislation to supply the deficiency of reve-
nue. and to meet the demand fer general
financial legislation will be the uncoHdi-
tional repeal of the income tax law. 1t is
believed that the treasury will be SO situ-
ated that the administration will be COM
PEELED to agree to these conditions, and IL
the Fifty-fourth Congress is called together
as early as April or May the law may be
repealed before the last of June. If Con-
gresS is not called together soon, however,
the expectation that one of its first acts,
whenever il does assemble will be to repeal
that law, will probably cause many, if not
most, persons of large incomes to run the
risk of prosecution by delay after the lim-
its allowed them for payment.