St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-04-10
IhExTRICABLE CONFUSION.
Officials Find Difficulties at
Every. Turn in Attempting
to Construe
ALREADY NEW LITIGATION.
No Probabilities That Clevs-
land Will Call on Congress
to Repeal.

WASHINGTON, April 9.-The de-
clSion Of the supreme court yesterday
in the income tax case has plunged
the internal revenue officials into
almost ineXplicable mysteries and
trouble, and the more the decision is
studied, the greater seem to be the
difficulties attending a. a.clear under
standing of it's scope. The declara-
tion that rents and incomes from
real estate are exempted has opened
up question very difficult of solu-
tton. The question has arisen for
serious consideration whether the
effect of the decision is not to include
not only rents proper, but all profits
OF Whatever character growing out
OF real estate, including farm prod
ucts, timber, coal and all mine prod
ucts, within the exempt class, so that
real estate, including buildings there
on, which, whatever else is held by
law to be part of realty, will be en-
tirely exempt. If losses sustained
through bad rent debts, the amount
OF expenses incurred in collecting
deducted from incomes, is also a
moot question. Under the decision
rents are not to be included in
assessing, the income tax. Suppose,
1t is, asked, a mans income is of a
mixed character, what is from real
and personal property? The former
is exempt. Can he deduct the ex-
penses necessary for the collection
of his income from realty from his
income from personal property, be-
fore making a, return? The
- QUESTION IS PUzzLING. !.
the revenue collectors, and legal
opinion on the point will probably
be sought.
Another grave question raised by
the decision is, whether tnesroa bed,
round houses, stations, etc, of rail-
roads are real estate or personal
property within the meaning of tue
The laws of several states are said
to differ on this point and on sew
eral others of Importance, which are
involved in the opinion of the court.
As soon as verified copy of the
opinion can be had the internal
revenue officials will begin the pre-
paration of supplemental regula-
tions which will cover in a more or
less general way thei opinion of the
questions to be solved as they are
presented Collections in different
parts of the country already have
begun to telegraph for instructions
on many points, at the same time
stating that the crush of those who
desire to make returns has already
begun. All things considered, it is
now thought that the loss to the
treasury. receipts from the income
tax source will exceed so per cent
of the total that had been expected
from this tax and may reach a
much higher figure.
The debates on the income tax
while the bill for it's imposition was
under consideration in congress are
almost barren Of figures showing
the comparative Importance of the
income from rents and interest on
county, municipal and state bonds
in furnishing a revenue to the
government. 1t does not appear
that this matter was touched upon
in the house discussions, and it was
only casually referred to in the
senate. Senator Aldrich, OR. u
prepared statement placing the
revenue likely to be derived through
the income tax at $780, 900, and
crediting rents and public bonds
with about 30 per cent of this
amount.