The Caucasian. (Clinton, N.C.) 188?-1913, 1895-04-18
ABOUT THE
INCOME TAX.
Great Confusion and Dissatisfac.
tion Over the Decision of the
Court--Trouble Coming.
PAYING UNDER PROTEST.

PAYING UNDER PROTEST.
Examples of the Unfair Conditions Pre-
More Suits Against the Tax--How tn.
Court stood a Summary of the Law.
The income tax is becoming ia
nous since the Supreme court Of the
United States rendered. it's opinion
1t Will te remembered that a sLi,
wac brought to test the constitu
tlonality uf the tax. The case was
heard by eight of the. nine Justices
Of the Supreme court including the
Chief Justice. After long and
powerful controversy by the leading
lawyers of the land, majority of
the court decided that rent incomes
and incomes from State ard munici.
pal bons1s could not be taxed. AS to
0ther incomes the court was evenly
divided-four holding that they
were taxable and four holding that
they were not. This status of the
Court left the law in force as to tax
ing all incomes except those from
rents and State and munici pal bonds
The action of the Court has raised
a storm of dissatisfaction all over
the country, and will lead to great
cloud of litigation.
The law was intended to tax all
incomes exceeding $4,000 annually.
But the action of the court will null
lily the intent of the law in thou
sands of cases, while nearly every
man who has an income exceeding
81, 600 is now ready to bring suit
against paying taxes on it.
| For instance man may have an
income of So, 800 from a manufactOry
and like income from bonds. MAX
ing a total income of 81 900 per
year; but none Of this can be taxed, b,
because the income from his factory
is not large enough to be te xed, and
the income from his bonds is exempt
from taxation by the decision Of the
| Court.
Again, if a man owns lot of land
which he rents out for $4,000 per
year, he is mt taxed; but If the man
who rents the land makes $4,000 per
year on it he is taxed.
1t can be plainly seen that a law
which will operate in this manner
will be discriminating measure,
and will always be a source of con
t9ntion and dissatisfaction. 1t is no
wonder that the courts decision has
made trouble, and that parties are
preparing to bring more suits which
they insist shall be heard by the flu
bench (nine) of the Court.
The law requires that all parties
having sufficient incomes shall re-
port them by April 10Th, or be sub
ject to costs and penalties amount
ing to fifty per cent. There is great
rush to all collection Offices, but
every man is making his return and
paying his fax under protest, with a
view of getting 1t back by some legal
acton.
The law las intended, is undeniably
fair and good one; but the constl-
tutional construction of it is unde-
MIA bly, unfair and bad.
Upon the important points of the
decision the Court divided as fol-
lows:
Chief Justice Fuller and Justices
Field, Gray and Brewer held that
the law, IS whole, is uncon stitution-
al. Justices Harlan, Shiras, Brown
and white regard the law as wholly
or in part constitutional. Justices
Shiras and Brown believe the tax on
incomes from rents, and ate,
county and municipal bonds, is un-
constitutional, and Justice Harlan
contends that the tax may be levied
on incomes from rents.
Judge Field gave vigorous de-
cision against the whole law.
The effect of the decision on the
Treasury will be most disastrous as
far as the receipts from the income
tax are concerned. No one will pre-
tend to say, with any degree of ac-
cu1acy, how much revenue will be
lost on account of the decision.
Commissioner Miller says that it
would take him sew raj days to make
even an approximate estimate, bu
the rough guess that has been made
by the Treasury officials is that the
revenue will be reduced by about
fifteen million dollars, if there are
no further adverse decisions.
Briefly summed up, the law, as il
stands at present, is as follows:
The tax is levied on incomes re-
ceived between January u, 1894,
and December 81, 1894.
The amount of the tax Is two per
cent.
Citizens of the United States
resident or nonresident aliens are
subject to the tax on all incomes
Nonresident aliens are taxed on in
comes derived from any source IN the
United States.
Incomes of 81 900 or less are ex-
empt from taxation.
On incomes exceeding $1,000 the
tax is levied only on the portion of
the income exceeding $4,000.
Incomes are taxable, no matter
from what source derived, except
those derived from rents of real es
tate, and those derived from inter
est on State OR Municipal bonds.
Only one deduction Of 81 600 is
made from the aggregate income OF
the members Of any family composed
Of one or more parents and minor
children.
Where corporations pay taxes OF
their incomes, individual stockhold
ers ara not taxed upon. incomes de-
rived from dividants on the stock ol
such corporation.
Each person having an income o.
more than So, 800 per year must
T make a return of such income to tht
collector or deputy collector of In
ternal Revenue of the district il