Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-12-22
ATTACKING THE TAX
Oonstitutionality of Income Act to Be
Tested.
Suit Filed Asking for an Injunction
FOrbidding observation-disclosures
mating Against Citizens.

A bill in equity was filed this afternoon
by Messrs. Shellabarger & Wilson and ex-
Senator F. Edmunds, on behalf of John @.
Moore Of New York city against Joseph S.
Miller, the commissioner of internal rev.
enue. The object of the bill is to restrain
and enjoin the commissioner and all per-
sons acting under him and by his au-
thority from doing any act or acts looking
to or contemplating the collection of the
income tax authorized by the last session
of the present Congress.
The petitioner states that he is share
holder in certain corporations. which cor
porationS have net earnings from Wnlch
they pay dividends to him and other STOCK
holders; that independent of and In addi-
ton to said dividends he has an income
derived from gains and profits OF his busl-
ness largely in excess of the sum of $4,000
per annum, upon which income including
said dividends the said commissioner OF IN
ternal revenue, under and by virtue OF the
provisions of said act, has threatened 10
and will proceed to assess the sum OF per
cent on the petitioners income in excess OF
said sum OF $4,000 per annum, which sum
he will be required to pay as taxes.
The petitioner further says that the cor
porations referred to are also required to
pay a tax of . per cent on their net earn
ings, without regard to any dividends PAID
out of said net earnings, and that ne is
required to pay like tax upon the moneys
so paid to him as dividends by said cor
porations, thereby wrongfully duplicating
the tax on the commissioner. The petit
toner represents that said taxation Is I'M
just and unequal, in that it discrimnates
against him for the purposes of taxation
between persons who are citizens of the
United States, and wholly exempts such
persons from taxation, as aforesaid, who
have an income not in excess of said four
thousand dollars per annum, and that
therein the petitioner and all others In the
same condition are denied equal protection
of the law.
The bill of complaint further alleges
that there is associated with the taxation
of citizens of the United States and sub
jet to the proposed taxation, not separable
therefrom, the provision that aliens re-
siding in the United States permanently
or only temporarily, shall likewise be sub
ject to said income tax, although such in
come is derived wholly from rents, in
terest. dividends, salaries or from any
profession, trade, employment or voca-
ton carried on elsewhere than in
the United States, thus unlawfully
and without authority undertaking to
tax the incomes of citizens of foreign coun-
tries temporarily resident in the United
States, although such incomes are derived
wholly from sources not within the 1urls-
diction of the United States.
And the petitioner further charges that
no exemption is made from taxation or IN
comes of such corporations within the Uni
ted States, which, although carried on for
profit or created, owned and operated by
the several states. and in the promotion OF
the police and other public functions and
policies of such states, which corporations,
being agencies of the government of the
respective states are not subject TO taxa
ton by the United States. and that such
assessments ere to be made upon the
income of the commissioner earned ana
received by him prior to the time at Wmch
said act took effect, and that all said taxes
attempted to be assessed and collected
upon incomes are not within the constitu-
tional Jurisdiction of Congress to impose.
The petitioner further charges that the
defendants are threatening and intending
and proceeding to take steps to make an
assessment against the petitioner, and to
| collect the same, not only for the income
| hereinbefore referred to for the first years
| but also for incomes hereafter derived
| from year to year continuously until
| the year $780, and that the said
| defendant and his successors will con-
| tinue to assess the commissioner from
| year to year, and that, If said taxes are
| so collected, although unlawful and un-
| just, the complainant will be without
| remedy, to recover the same from the
| United States, or, il collectable at all, it
can only be by vexatious expenses and
| long continued litigation will render the
remedy useless.
Because of the foregoing matters end
premises, and because of other defects and
| invahdity of said income tax enactment,
| the petitioner AYERS and charges that the
| act is invalid and unconstitutional and in
operative and void, and that he would be
| without adequate remedy at law from the
| redress of said illegal collections.
Wherefore the petitioner prays that the
perpetually restrained and enjoined from
| doing any act acts looking to contem-
| plating the collection of said tax or any
part thereof.