The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-07-17
He Thinks the Taxation Of Personal
Incomes, Small ms Well as Large, Is
the Most Equitable System.
ANOTHER TEST POSSIBLE
MONEY COLLECTED UNDER THE
LATE LAW NOT YET REFUNDED,
And the Secretary Intimates the Su-
Chance to Change It's Mind.
to the Indianapolis Journal.

Special to the Indianapolis Journal.
WASHINGTON July 16.-There is every
reason 10 believe that the question of the
validity OF the income-tax law may again
come prominently before the public at an
early day. The authority for this assertion
is no less a person than Secretary Car
Isle. During his recent stay at Marion
Mr.. Carlisle was led to discuss variety
Of public questions-the attitude of both
parties on the silver question, his candidacy
for the Senate, and, finally, the condition
of the treasury and the means to increase
the present insufficient revenues. Mr.. Car
Isle, having no reason to fear that he was
talking for the pubic, spoke freely. Then
this conversation ensIed:
'Will the income tax be an issue in the
future. Mr.. Carlisle?'
Where is ur revenue 20 come from
without something like the English sys-
temp the Secretary Is quoted as replying.
"As our manufactures progress you can't
put on any tariff that won't be virtually
prohibHory Of importatons. and then how
can there be su-Bsie revenues from i'm
port? If we can sell iron and steel and
doing any duty whatever must soon bring
a minimum, because imports will be at a
minimum. You must then follow the Brit
ish plan of duties on goods not produced
in this country, such as coffee and tea
and other luxuries, and help this revenue
out with excise and income taxation The
excise on tobacco, spirits, beer and such
things Is like the tariff taxation of con-
sumption, and Objectionable on that ac-
count. The taxation of incomes falls only
upon surplus, and is hence the most equita-
BILE of all If laid without limitations upon
all incomes, small well as large
you did not agree with the decision of
the Supreme Court?'
"As to taxing income from state and mu-
nicipal bonds. yes" replied the Secretary,
''for if you tax them at all you can tax
them out of existence, which would permit
their destruction. But the courts inter-
probation OF the tax on personal income as
direct tax is the sticking point"
'1s there any way to get over that pont?"
mot unless the court itself throws 1t
over, that can see, as the apportionment
OF income taxation according to population
would work gross injustice in certain of the
States"
WELL how can the issue be raised
again?'
Then the Secretary is said to nave replied
in these significant words: There is the
$4,000 paid in under the late law before
the decision declaring its unconstitutional
ity was rendered. That money has not yet
been refunded to those who paid it, and
perhaps 1t won't be very soon. If the mat
ter comes up again before the Supreme
Court on some suit against the government
for the income tax collected it may be
found that some member of the court has
changed his mind again in a surprising
manner. as one was found to have done
this year after the lapse Of very short
time.'
The above statement, at the request of
your correspondent, was brought to Secre-
tary Carlisle's attention by his son, Mr.
Logan Carlisle. Secretary Carlisle read 1t
over and then stated that it was not an
officially authorized statement, because
when he had made the remarks on which
the statement was founded he believed he
was engaged in private conversation He
perfectly remembered the circumstance un-
der which the conversation was held. Too
frank to deny what he had prooaoIy said
in substance, Mr.. Carlisle contented himself
with stating that his words had been pos
sibly misnterpreted to some extent. He
left the impression, however, that, while
not a verbatim account of his opinion, he
had not been seriously misrepresented
There is therefore the interesting contin-
gency Of another hearing of the income tax
and the apparent expectation on the part
OF the administration of another reversal