The Portland daily press., 1895-04-08
THE INCOME TAX.

Among the rumoTs in relation to the
coming decision of the Supreme court
upon the income tax law is one. which
is getting a good deal of oredence in
administration circles, to the effect that
while the court will sustain by tie vote
the general principle of the law, it will
declare the imposition of tax upon in
comes derived from rents end state and
municipal bonds unconstitutional. 1t is
safe to say that if such decision as
that had been anticipated the law would
never have been passed. It was made
perfectly clear when the income tax was
under discussion that the object of a
great many of Its advocates. perhaps of
the majority, was to get at the Croesus-
es of the Countrywide men who were
not actively engaged in the promotion
of enterprises, but who lived upon the
proceeds of investments. OF course
business men had to be included too,
but the real animus of the tax was
to punish the class that used to be stig-
matized in greenhack days as the
"bloated bondholders." Probably if any
method could have been devised TO con-
fire the tax to this class there would
have been strong sentiment in favor of
adopting it. The popuiistic spirit to a
great extent underlay the tax. and it
would have been glad to crafty
itself further than it did. by placing the
whole burden Of the tax on the very
rich who derive their incomes prlnci-
pally from rents and bonds.
Now, if it should turn out that the
decision of the court is in accordance
with the prevalent rumor we have al
luded to. it will be seen that the class
that the tax was especially aimed against
will almost entirely escape; and the bur-
den of the tax will fall upon individuals
promotion of enterprises that give en-
ployment to labor. The great Astor es-
tate of New York, estimated at hundreds
of millions, is invested largely in real es-
tate, and its income is derived chiefly
from rents. Under the rumored decision
of the court this estate would escape tax
alton by this law, while the little
corporations engaged in the shoe business,
or the grocery business, or in manufac-
turing in small way-and every city
of the east has many of them
will be Etaxed two per cent
upon every dollar of income. The law
yer and the doctor, who earn their in
come by hard work, will have to pay a
tax upon an income in excess of $4,000.
wnile the capitalist who clips his income
from state and municipal bonds will go
scot free. The great properties of the
land which are largely invested in real
estate and public obligations, instead of
being mulcted by this law will bo
privileged, and door will have been
opened for the escape of every rich man
by withdrawing his capigal from active
enterprises and the investment of them
in lands and tenements and public secur-
ties. Instead of being law to impose
the burdens of the government upon the
very wealthy, it will become a law to
relieve this class, and hold out a con-
stant temptation for capitalists to with
draw their money from business enter
prises, and become simply rent col
leetors and coupon clippers.
OF course if the law turns out to be this
kind of a measure, it will not survive
another Congress. The spirit that incit-
ed it in the expectation that it
would enable the government tax gath
erer to get his hand way down into the
pockets of the Croesuses. will be very
much disgusted when it finds that theirs
are about the only pockets that it will
not get into. II it cannot be amended
to reach tbem-and there is little chance
OF that-there will be practically uni
versal demand to have it swept off the
statute book altogether. No law that
taxes enterprise and lets wealth gone to
seed 90 scot free can survive an hour af-
ter it is found out and Congress meets.
Indeed there may be such a popular out
cry against it as will compel the calling
of an extra session TO get it out of the
way.