New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-04-11
INCOME TAX DIFFICULTIES
CAV ANY TAX BE COLLECTED FROM THE
PRESIDENT?
CONSTITUTIONAL PROHIBITION IN THE WAY

, CONSTITUTIONAL PROHIBITION IN THE WAY
HOW OTHER OFFICIALS WILL FARE.
washington April 10-The collection of the in
oome tax on the salaries OF Government clncers
ho receive more than $4,000 a year will probably
no fraught with many embarrassing complications
Already a question has arisen to whether II Is
constitutional TO deduct from the annual salary OF
tho President Of the United states the 500 Which
,,iu be his share of contribution TO the revenues
under the per cent assessment Inc feueial
constitution expressly provides that the compen-
cation of the President shall neither be IN
creased nor diminished during the period for which
no shall have been elected" direct conflict with
This provision is contained in Section 80 or the
Tarin law which says that there shall be levied
collected and paid all salaries OF officers. or
avments for services to persons in the civil. mill
torv naval or other employment. or service or
the United States including Senators and Repre-
sentatives and Delegates in Congress then exceed
ing the rate of $1,000 per annum, a tax OF per
contum" etc. \ deduction of the income tax from
,ba Presidents salary is construed to be dimnu-
ion and therefore contrary to the constitutional
.,,ion ouoted This matter will undoubtedly be
trouqht TO the attention of the Controller OF the
Treasury for decision
The application OF the principle given is Inc same
With reference to all Federal judges appointed
Tor life Their salaries are apparently protected
tror, tho income tax by constitutional provision
rim, their continuance in office. Federal judges
amounted for a stated term. however. will prob
ti,. no obliged to pay the tax through deductions
~ the requisite amounts from their salaries.
Nearly every of the officers of the Govern
,,opt who receives a compensation of more than
tt.o 4 YEAR has been busy since the Supreme
court decision was rendered in making up state
mont Of his income for transmission to the Collec-
tor Of Internal Revenue in the district where he
has legal residence. The President Is understood
n have sent in his statement, and Private Score
,orv Thurber lost no time in doing likewise. Col
onel Crook. the disbursng officer of the Executive
Mansion. says he has received no instructions from
the Treasury Department to deduct the tax from
Mr. Cleveland's compensation d public officer.
He ike other disbursing officers of the Govern
ment will he guided by the instructions contained
in a circular sent to paymasters and dsbursng
officers by the Secretary OF the Treasury, as fol-
lows:
The regulations relative TO income tax. approved
December -. 1894 provide. that
persons in the employ of the Government of the
tinted States in and for the calendar year 1884,
tors. on torm 3d.. Of such officers ana persons in
statements of gains. profits and incomes subject to
As the income tax on such salaries compensa-
t rS rdc TpeF h b the a Pso he
the same YOU will. therefore. deduct and with
salary or compensations Of any such officer or en-
ploye. in and for the year 1894
TO whom you may make any payment for services
rendered in the year 1894 OF the method prescribed
for the return and payment of the tax on all taxa
bic salaries and compensatons paid by the Govern
ment in and for said year.
The collection of the tax for the year 1895 by de-
ducton from the compensation Of Government
officers is operative Immediately in the Of a
number of officials. notably all the Ambassadors of
the United States and the Minister to Mexico ana
the Consuls-General at London and Paris.
Under the method to be pursued the deductions
Will be made from the first payment to an officer
after his compensation has reached 5000 during
the present year. \ simple example Will make th.s
method clear: y Cabinet officer receives $500 per
year in salary. On July ! next he viii have re-
Ceved 5000 in salary for the present calendar year.
the preceding month the disbursing officer will de-
duct . per of the monthly salary about So.
and so continue at each monthly payment until
the end OF the year.
There will be no separation OF taxable income
ceved from the Government and from priva
ny A Government officer in leVying the tax.
so that an officer whose salary Federal cmplOve
may he taxable and whose private income does not
exceed 5000 viii not escape with the deduction
claimed the basis Of the addition Of his annual
receipts from all public and private. Thus
Cabinet officer who has N.ep year from private
sources must pay per cent OF that amount 10 the
collector Of internal revenue in the district where
he has legal residence, while one-haf of his oica
compensation OF $500 is likewise subject dcdIc-
department
treasury officials in the absence Of the full text
law. still cropping in the dark to its exact
II Gaming and have therefore been unable to send
out supplemental instructions 70 collectors as 10
how the law that still remains shall be carried out
Collectors will have to be guided. until they receive
official instructions, by their best judgment
Commissioner Miller is devotng his entire time TO
comprehensive supplemental instructions ready for
issuance tomorrow at the latest.