Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-01-25
THE INTERNAL REVENUE BILL
1t is Reported to the House and Re-
ferred
A Slight and Ineffective Filibustcr "a
Prevent the COmmittee's Get.
ting I'm Its Report.

prevent the reporting of the bill at this
time, and Mr.. Cochran got the floor ahead
of Mr.. McMilin, who had the report to
submit and moved that the House ad-
journ. This motion amounted to a filibus-
ter, which was carried to the point of a roll
call. Mr.. Cochran had but thirteen follow
ers in the vote. however, and his motion
was therefore lost. Mr.. McMillin secured
recognition. and the bill and accompanying
report were i'm the possession Of the House.
When this was accomplished a round of
applause was given the income tax ad-
vocates.
Mr.. Tracey had still another shot in his
locker, "a point of order" but the Speaker
directed the clerk to proceed with the read
ing of the title Of the bill.
At its conclusion Speaker Crisp said:
THE bill and the accompanying report will
be referred to the committee of the whole
House on the state of the Union," and the
business was done.
The Committees Report.
The report states that having recon-
mended that excessively high duties should
be abandoned, that the raw material which
enter into our manufactures should be
either made free or subjected to lower duty.
1t becomes necessary to recommend some
means whereby the present and prospective
a more just and equitable imposition of the
burdens of taxation be made.
The committee, therefore, recommend an
increase of the tax on distilled spirits from
80 cents per gallon to 81 per. gallon, ana
have recommended an increase IN the TAX
on cigarettes from % cents per thousaho
to 81 per thousand; the imposition OF tax
of cents a pack on all playing cards made
or offered for sale in the United States. and
a tax of . per cent on all net incomes tf
corporations and on incomes OF lndiVlouais
in excess OF $4,000
A tax on incomes is no experiment in this
country. IT has been tried thoroughly here
and i'm other great governments OF the
world In all countries where IL has been
tried 1t has not only yielded certain rev.
enue, but has also put a portion of the bur-
dens of taxation on that part of the COM
munity deriving greatest advantages and
blessings from government and most able
to meet its requirements. All citizens are
alike interested in the protection of life
and liberty. But in addition to this. those
who have been blessed with large fortunes
are also interested in having them protect
ed against the rapacity of the lawlass.
The wealth of this country amounts 10
more than SG5,0o0.0uO.Ooo, and the question
arises whether ii is not just and fair that a
portion of this money should he raised by
a tax on the earnings of wealth instead of
imposing ii ali or nearly ali on consunp-
ton. The committee believe that IL is emf
nently just and proper that the amount
from tax on incomes instead Of placing
all of it on the necessaries of life. which are
consumed by all, but are not used in pro-
portion to their ability to pay taxes but
according to the necessities of existence.
What just complaint can there be AGAINST
placing S0.OOoO00 Of this burden on wealth
rather than all of il upon Consumption? 1t
Is not proposed to raise all of il by an in
come tax. 1t Is not even proposed to raise
half. or one-fourth. or one-tenth Of 1t in
that way; but only a small per cent by an
imposition OF per cent tax on the incomes
over $1,000 OF all individuals and the net
incomes inc OF all corpora tons. The commit
tee see no hardship in requiring those who
have incomes of more than $4,000 a wear TO
pay per cent of all in excess of tnat
amount to carry on the government under
which II has been accumulated ard NV
which 1t is protected.
AS To Corporations.
corporations are by the law given special
privileges and advantages. Their stock
holders In the main are freed from personal
liability by the laws of their creation. They
have almost perpetual life; they may sue
or be sued as individuals Through ,,a
courts Of the country they are protected
ana enabled to carry on their operations
1t has. therefore. been deemed by the COM
mittee not unjust TO place a tax of . per
cent on their net earnings
IL mas been the effort of the committee TO
provide for the collection of this REVENUE
Win as little expense to the government
or annoyance to the taxpayer in its ad-
ministration as possible. They have there
fore. provided by the bill for the simplest
machinery consistent with efficiency one
OF the complaints made against an Income
TAX is thar IL Is inquisitorial in it's nature
oppressive in its administration. The COM
mittee think that ii has been guarded
against as amply as can be i'm any tax and
that an inspection of it will prove il TO
possess as little that is inquisitorial as am
state. county. Or municipal, or government
tai tax in existence.
In answer to the assertion that an in
come tax cannot be collected, the commit
tee present tables to Snow that from 1864
to 1854 income taxes We're collected To .be
extent of &546,ooO.0oo
After citing the success of the income
tax in Great Britain. Italy and Germany
the report says:
Here We have a government of the p.,-
pie, by the people. and for the people" We
boast that our motto is "qual rights TO an
and special privileges TO none Herr ne
claim that the burdens OF government ougbt
TO be borne in proportion to the ability of
each citizen who is protected by IN Vat
under our peculiar system there are c;t,,ans
or great wealth. who, by our method Of
taxing what We must consume rather
than what we have accumulated, pay little
more to the support OF the government
than is paid by the day laborer. who has
nothing.
The report states further that the tax can
De Cne3ply cclecteC with Few officials
one of the advantages to be derived from
the imposition Of this tax is that the United
States would thereby obtain some reyenue
from the vast foreign corporations that are
under the protection Of our laws and gov
eminent, doing business and accommodating
fortunes to be sent abroad to residents of
foreign countries who are not citizens and
neither expect nor desire to become such
The commissioner OF internal revenue made
an estimate. based on our present popula
ton and wealth as compared with that of
the period embraced under the former ,n
come tax law. from which he estimates that
on individual incomes there would be a Weld
of more than $S0.0000o at a tax rate OF 4
per cent. Two per cent would Yield one-half
this amount.
The committee thinks that too large a
portion of the taxes are collected from the
necessaries of life, and. consequently too
small part from the wealth OF the peorle
which has been accumulated and is held IN
excess OF what is necessary for their COM
fort
BY making our tariff laws wha. they
should be and imposing an income tax to
raise a portion of the revenue IL will be
possible to raise or lower this tax TO meet
the requirements of the treasury and avoid
the necessity of changing the rates that
affect our industries SO frequently Sta
bility Will help our manufa ctures most The
taxes ought to be so placed that IL will not
be necessary to either issue bonds or change
tariff rates with every fiuctuation of the
revenue.
There has been an immense falling off
of revenues for the last year The reserve
in the treasury has run down and 10 in