The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-04-10

ing a return? The question is puzzling
the revenue collectors.
Another grave question raised by the
decision is wheth er the roadbed, round
houses, stations, etc., Of the railroads are
real estate or personal property within the
meaning of the law. The laws of several
States are said to differ on this point and
on several others of importance involved
in the opinion of the court. As soon as
verified copy of the opinion can be had
internal revenue officials will begin the pre-
paration of supplementary regulations
which will cover in a more or less general
way the opinion of the court leaving the
more abstruse questions to be solved as
they are presented. The collectors of the
tax in different parts of the country already
have begun telegraphing for instructions
on many points. All things considered,
it is now thought the loss to the treas
ury from the income-tax source will ex-
coed so per cent of the total expected from
this tax.
The debates on the income tax while the
bill for its imposition was under considera-
ton in Congress are almost barren of
figures showing the comparative import
ance of the 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. Senator Aldrich of Rhode Island
prepared statement placing the revenue
likely to be derived through the income
tax at 500, 100000 and crediting rents and
public bonds with about 80 per cent of this
amount.
Senator PETER, who made the principal
speech in the Senate in advocacy of an in
come tax, did not go into this branch of
the question at all, but he said to-day in
an interview that he was of the opinion
that between $4,000, 900 and SIC, 900, 600 of
revenue would have been derived from
those two sources if the Supreme Court
had allowed them TO stand, and he added
that he thought this amount would have
been about two-thirds of the revenue pro-
duced by the income tax.
''The census reports show" he said,
''that 50 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 improvements added,
is put down as worth $39, 544. 523, 544. Ofthis
amont SIC, 000, 900 900 worth is rented. The
rental on that amount at the average rate
of per cent would be $1,000, OO0 600. Just
what proportion of that would come under
the law is another matter and that could
not be got at accurately, but let us assume
that one-quarter of it, or $3.50, 600, 900 worth,
would be taxable income, that would give
$5,000,000,000 of income tax, and that, l
think, is very low estimate. The bonds,
municipal, county and school district,
which would have been subject to the tax,
amounted to 5000, 213, 053.s Take one-quarter
of this amount as coming within the opera
tions 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 SO, 500, 900.
Late this afternoon Commissioner Miller
decided to require all persons who have
made returns to make affidavits to the facts
as to the amount of income received from
rents and bonds, and those who have not
yet sent in their returns to make necessary
correction thereon before doing so. 1t
seems probable the final decision will be
that yesterdays opinion in effect exempts
incomes received from bonds and rents,
the latter to be strictly defined as the.
amount the landlord derives from his ten
ant. In computing income it is believed it
will be held that insurance, ordinary re-
pairs and taxes on exempt property may
be properly deducted. In that case it is