The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1895-04-13
Income Tax Mystifies the Treas
ury Officials.
THE COLLECTORS ARE AT SEA
Grave Questions Raised on Which Laws
of Several States Are in Conflict
Legal Advice Necessary.

Washington, April 9.-The decision Of
the supreme court yesterday in the in
come tax case has plunged the internal
revenue officials into almost inexplica-
bic mysteries and trouble. The more
the decision is studied the greater seems
the difficulties attending a clear UNDER
standing of it's scope The declaration
that incomes from real estate are ex-
empted has opened the question wheth-
er the effect of the decision is not to in
clude all farm products. timber, coal
and all mine products within the exempt
class. Whether the losses sustained
through bad rents, debts and amount
of expenses incurred for collecting
rents, or for repairs on houses, are to he
deducted from the incomes, is also, a
mooted question.
Under the decision rents are not be-
ing included in assessing the income
tax. Suppose, it is asked that a mans
income is of mixed character that is.
from real and personal property. The
former Is exempt. Can he deduct the
expenses necessary for the collection of
his income from realty from his income
from personal property before making
a return? The question is puzzling the
revenue collectors, and a legal opinion
on the point will probably be sought
Another grave question raised by the
decision is whether the roadbed, round
houses, stations, etc, of railroads are
real estate or personal property within
the meaning of the law. The laws of sew
eral states are said to differ on this
point and on several others Of import
ance involved in the opinion of the
court
AS soon as q verified copy of the Opin-
ion can be had the internal revenue Off
Gals Will begin the preparation Of sup
planetary regulations which will cover
in a more or less general way the opin-
ion of the court, leaving more abstruse
questions to be solved as they are pre-
scented. The collectors of the tax in
different parts of the country already
have begun telegraphing for instruc-
tons on many points, with some stat
ing that a rush of those who desire to
make returns has already begun. All
things considered, it is now thought
the loss to the treasury from the income
tax source viii exceed 30 per cent. of the
total expected from this tax.
MORE SUITS TO COMMENCE.
Attorney j. NJ. Wilson, who repre-
scented John G. Moore in the court of ap-
peals in the recent income tax cases,
said this morning that further proceed
ings would be begun Immediately.
Several parts of the law will be at
tackled" said he. "the principal one be-
ing the exemption from taxation Of
incomes under $4,000 annually. This
win be attacked as unjust discrimina-
ton l can not say just who the COM
plainants or what tie titles Of the suits
1,r.H .frT
probably within a few days, and will be
pushed as rapidly as possible"
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 compar-
alive Importance of incomes 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 discussion and it was only
casually referred to in the senate SEN
ator Aldrich of Rhode Island prepared
statement placing the revenues likely
to be derived through the income tax
at s10O00O,0O0 and counting rents and
public bonds at about 80 per cent. Of this
amount.
PEFFER'S ESTIMATE.
Senator PETER, who made the princi-
pal speech in the senate in advocacy Of
an income tax, did not go into this
branch of the question at all. but he
said today in an interview that he was
of the opinion that between 50 ZOO, 900
and $40, 000, 900 revenue would have been
! derived from those two sources If the
supreme court had allowed them to
stand, and, he added, he thought this
amount would have been about two
thirds of the revenue produced by the
| income tax. 1.-The census reports show"
he said, that 50 per cent of the people
Of the United States are renters and IL
is to be inferred that about this proper
ton of land is occupied by renters. The
land Of the entire country, with i'm
provements added. is put down as
worth 500 ,544. 544,323. OF this amount
$1,000 900, 900 worth Is rented. The rent
al on that amount on the average of s
per cent. would be $1,000, 900, 900. 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 that one-quarter Of
1t, or $3.50 100000 worth, would be taxa
| bic income, that would give $1,000 900
OF an income tax and that / think a
very low estimate. The bonds, NUM-
cipal, county and school district, which
would be subject to the tax amount
| to $685. 213, 053. Take one-quarter of this
amount as coming within the opera
tions of the law and one arrives at the
rate of per cent on this amount.
1881 $780, or total on the two items OF
about $9.5OO,OOO."
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