Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-01-28
AN INCOME TAX DECISION
Army and Navy Officers Whose Pay Exceeds
the Limit Are Liable.
The Question Has Been Passed Upon by
Attorney General Olney-The
Matter Of Mileage.

The Attorney General has given an opin
ion to the Secretary of War in regard t.
the operations of the income tax law tina
| is OF special interest to army and navy
officers and members Of Congress. A few
| weeks ago Secretary Lamont raised the
| question, whether, under this statute, Off
| GERS Of the army will be subject to the tax
| where their incomes are above the $IOO(
| limit by reason of allowances for quarters
and rattons and mileage. The question has
aGitated the army and navy for some time
and it was thought well to secure a legal
opinion thereon. In his opinion on the
subject the Attorney General holds that
the law applies to all incomes above $4,000
regardless Of their character, and he states
that paymasters must deduct from the
amount diSbursed to officers on their in
dividual account the tax Of 2 per cent in
all cases where 1t aggregates the sum
mentioned. The Attorney General says his
views are the same as those expressed by
predecessor in passing on the income
tax law Of 1864
Expected Regulations.
1t is expected that the War and Navy
Departments will issue regulations preii-
Gated on this opinion, and that the officers
Of both services receiving compensation
above $4,000 per annum will be mulcted
accordingly. Several arguments are ad-
Vanced against the imposition of the tax
in such cases.
AS the laws are now constituted army
and navy officers are compelled to pay out
Oh their own pockets the amounts neces-
sary TO secure transportation when they
are ordered to change stations and the
change involves travel. When they have
reached their destination they file with
the paymaster their voucher for mileage,
and before this can be paid the paymaster
haf1l
amount, provided the officers income is
more than $1,000, even though the officers
expenses aggregate more than what is
paid him. In the matter Of quarters, also,
a!thouSh the government may fail to sup
ply an officer with a residence, that officer
must accept communication for quarters
and furnish his own house. In addition to
the expense OF house rent, he will, under
the attorney Generals opinion, have to
pay tax on his Communication money. The
same may be said Of his rations.
The Army Officers Affected,
The officers in the army who will he ST.
fected by the income tax law, so far as 1t
concerns their salaries, will be those hold
ing the rank Of lieutenant colonel or above
II, but II there is any considerable travel
10 De made by an officer of less rank his
pay may be brought up above the $4,000
inquire and he be compelled to pay an in
come tax The same grades are taxable
III the marine corps. In the navy rear
admlrals, captains and commodores will be
taxed on their pay; also medical and pay
directors and inspectors, chief engineers
having the same rank as fleet surgeons,
paymasters and engineers.
Although the opinion makes no reference
TO the mileage of members of Congress,
the same principle is involved in their
case II the mileage of army and navy
o1ice1S Is an element Of taxation under the
income tax law as construed by the At
torney General it would seem that the
mileage of members of Congress is similar
~ taxable. deduction of 2 per cent from
their mileage allowances will meet I'M
1oubtedly, with considerable opposition
from the statesmen responsible for the |
statute, but it is difficult to see any reason
tor making fish Of one class of officers anu
1esh of another.