The Providence news. (Providence [R.I.]) 1891-1906, 1895-01-08
THE INCOME TAX.


large appropriation Of money for e'-
penses. As there is not likely to be an
appropriation made. it is somewhat
difficult TO understand how the collec-
ton can GO on, or the law be made
operative in any way.
The tax law Is clearly unconstitu-
tional, on more than one ground, as has
repeatedly been shown, but the strong
est argument against it is that the peo-
pie detest it and will resist its enforce
ment with all their power. exhausting
every possible legal expedient before
submitting TO the gross indignities 1t
proposes to infict upon them.
The inquisitorial feature of the census
taking were thought to be almost unen-
durable, but the questions and processes
authorized by this rider of the tariff act
are such as dwarf the census questions
TO nothingness and make the Russian
processes appear by comparison quite
decent and civilized.
1t is understood that combination OF
number of financial institutions in
New York have combined to test the
constitutionality of the law, and that
while they do not intend to resist the
first steps Of the collection of the tax,
they will, perhaps, pay under protest,
and then sue the Government for the
money paid.
1t will be interesting to note what the
precise grounds Of objection to the tax
will be, if the movement for collecting
it ever reaches the point of demanding
money from taxpayers. A correspond
ent of The Sun suggests very simple
ground upon which it seems that con-
test might be based, with strong prob
ability that the Supreme Court might
decide against the law upon precedents
established in cases arising because OF
the income tax law OF 1864,
when the constitutionality OF
that law was several times
passed upon, and affirmed. The affirma-
tion Of the constitutionality of the war
/ time income tax furnished grounds for
the rejection of this law, it appears.
Those decisions declared that the
income tax was not direct tax but
an excise or duty, and the constitution
requires that duties, imports or excise
shall be uniform throughout the
United States" The present in
come-tax act furnishes plenty OF
evidence that it is not uniform. 1t ex-
cepts salaries OF State, county and mu-
nicipal corporations, certain corporations
and associations and the income from
certain United States banks. 1t operates
to tax some incomes, indirectly,
that do not come up to the mini
mum sum named as liable to taxation;
the income from corporate shares,
for instance, is all taxed, as the
corporations are required by the law
to pay the income tax, which must be
paid from the funds that go to share
holders as dividends. II persons
funds are invested in corporate shares,
therefore, he pays an income tax upon
every penny OF his income, whether it is
| $1,000, under or over.
Members of the same family, living
together, are allowed but one exemption,
although their individual incomes may
all be less than $4,000 and their sources
of income wholly distinct and separate;
five persons living together and each
earning $500 would be taxed upon $13,-
500, and though they might be wholly
exempt If they were not domiciled to-
gether, they are doomed to pay $270
annually for the blessed privilege of be-
ing sheltered by the same roof. This
surely is not uniform tax.
Some such line Of argument as this
may be followed when the attempt Is
made to break the law in the Supreme
Court, but the arguments that will be
most powerful in creating public
clamor against it will be founded upon
the insolent and unnecessary invasion
of private rights it authorizes and COM
mands The inquisitors are to con :
slider all persons having an income of
| ToOOO VI Ofci, dih CfCiy ohSh pciSoh
must answer these questions, under
oath:
]. Had your wifo or any minor child or
children of yours any income last year?
. Have you included such income or in
comes in this return?
3. Have you kept books of account2
T. Is your income therein estimated or taken
from your books?
o. What are the particular items of "losses"
set forth by you opposite paragraph Of "de-
ductions," and when did each occurr
g. Are you citizen OF the United States,
and what is your occupations
Z. How did you determine that debts re-
turned by you as worthless" could not be
| collected?
s. What were the necessary expenses"
and the amount OF each class included In the
amount set opposite paragraph of "deduc-
tonsY'
In addition to this the collectors are