The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-04-10

Washington, D. c., April 9.-The de-
cision of the Supreme court yesterday
in the income tax case has plunged
the internal revenue officials into al
most inexplicable mysteries and trou-
BILE The more the decision is studied.
the greater seems the difficulties at
tending a clear understanding of its
scope. The declaration that rents ana
incomes from real estate are exempted
has opened up the question whether
the effect of the decision is not to
include all profits of whatever charac-
ter growing out of real estate. includ-
ing farm products, timber, coal and all
mine products, within the exempt
class Whether the losses sustained
through bad rent debts and the
amount of expenses incurred in collect
ing rents or for repairs of houses are
to be deducted from the incomes, is
also a mooted question. Under the de-
cision rents are not to be included in
assessing the income tax.
Suppose Case.
Suppose, it is asked, a mans income
is of mixed character; that is, from
real and personal property. The for
mer is exempt Can he deduct the eX-
penses necessary for the collection Of
his income from personal property be-
fore making a return? The question is
puzzling the revenue collectors and
legal opinion on the point probably
will be sought.
Another grave question by the de-
ciSion, is whether the road bed, round
houses, stations, ETC.. of the railroads
a re a-fo or
within the meaning of the law. The
law of several states are said to differ
,n this point and on several others of
Importance involved in the opinion of
the court. AS soon as a verified copy
can be had the collectors of internal
revenues will begin the preparat ton for
supplementary regulation which will
cover in a more or less general way
the opinion of the court, leaving the
more obtuSe questions to be solved as
they are presented. The collectors of
tax in different parts of the country
already have begun to telegraph for
instructions on many points, at the
same time stating the rush of those
who desire to make returns has al
ready begun. All things considered, it
is now thought the loss to the treasury
from the income tax source will exceed
80 per cent of the total expected from
this tax.
Barren of Figures.
The debates on the income tax white
the bill for its imposition was under
consideration in Congress are almost
barren of figures showing the compare
tive Importance of the incomes from
rents and interests on county. NUM-
cipal and state bonds in furnishing a
revenue to the government. 1t does not
appear that this matter was touched
in he =; =.
was only casually referred to in the
Senate. Senator A1drich. of Rhode Is
land. prepared a statement placing the
revenue likely to be derived through
the income tax at s10O, 100000, and emu
merating rents and public bonds with
about so per cent. of this amount
Senator PETER. who made the prin-
cacy of an income tax. did not go into
this branch of the question at all but
he said today. in an interview, that ne
was of the opinion that between rine
and ten million dollars of revenue
would have been derived from those
two sources if the supreme court had
allowed them to stand, and he aided
been about two-thirds of the revenue
produced by the income tax.
Percentage of Renters.
that 80 per cent. of the people of the
United States are renters. and it is to
be inferred that about this proportion
of the land is occupied by renters. The
land of the entire country. with i'm
provements added. is put down as
worth 500. 544. 544. 1913. OF this amount $780,
600 600 worth is rented. The rental
on that amount at the average rate of
5 per cent would be $1,000. 100000 Just
what proportion of that would come
under the law. is another matter and
that could not be gotten at accurately,
but let us assume one quarter of it,
or s250.000.000 worth would be taxable
income that would give $4,000. 900 of in
come tax. and that 1 think very low
estimate The bonds. municipal. county
and school district. which would be
subject of the tax amount to $685.
213.053. Take one quarter of this
amount as coming within the opera
lions of the law and one arrives at
the rate of 2 per cent. on this amount.
81 531. 065. or total on the two items of
about nine and half million dollars
SIiiIer's Orders.
tate this afternoon Commissioner
Miller decided to require all persons
who have made returns to make az.
fdavits to the facts as to the amount
of income received from rents and
v
sent in their returns to make neces-
sary correction thereon before doing
so. 1t seems probable that the final
decision will be that yesterdays opin-
ion in effect exempts incomes received
from bonds and rents, the latter TO be
strictly defined as the amount the
landlord derives from his tenant. In
income it is believed It VIII
be held that insurance, ordinary re-
pairs and taxes on exempt property
may be properly deducted. In that
case it is probable the courts will be
called upon to explain just what yes
terday's decision intended to exemp'
from the tax
Private Secretary Thurber's atten-
ton being called TO the statement con-
tanned in the Washington evening pa
pers today, that the president was be-
ing flooded with kilograms from all
parts of the country appealing to him
to call an extra session of Congress to