The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-09
EFFECT OF THE TAX DECISION
CLEVELAND WON'T CALL AN EXTRA
SESSION OF CONGRESS-.

the Revenue Derived From the
Tax-They Expected to Receive
S3O.OOO,OOO and Some Put the
Amount as High as 100000, 900.
senator HIn i'm an Ecstacy of De-
light over the Ruling.
Washington, April S-The President
on being asked this afternoon whether
in view of the decision Of the supreme
court on the income tax law an extra ses-
sion Of congress would be called, said
that neither he nor the Secretary of
the Treasury saw any necessity for such
action, and that unless there was an un-
expected change in conditions, he had no
idea that congress would meet again be-
fore the time appointed for its regular
session.
Commissioner Of Internal Revenue Mil
Ter says it is almost impossible to antici-
pate Just how much revenue the govern
ment Will be deprived Of in consequence
OF the exemption of rents and municipal
ana state bonds by the decree of the su-
preme court. 1t has been estimated that
the returns from the income tax, IN ac-
cordance with the existing law, would
aggregate something like $50, 900, 600 1t has
been asserted since the law was passed
that that estimate was too low, and that
the returns wouIG PROBABLY reach as high
as $6OUOO,OJ0 or SlU,OO0,0OO. In any event
Commissioner Miller says he does not
believe the exemptions, under the ruling
of the court Will cause a falling off in the
estimated amount to be derived from the
income tax, OF more than One-thlrd OF the
estimated sum. 1t is impossible to form
any correct idea of how much money is
derived from rents throughout the United
States as the census returns do not show
1t, neither 90 the reports from the bureau
OF statistics. There are no official ngures
in eXistance upon which an estimate in
that connection can DE oaseo: IT tne orig
inal estimate of the returps from this tax
Is approximately correct, the government
may lose $l0OO0,000 or SIS, 900 Of ex-
pected revenue. Thus far the returns
made TO the commissioner from the tax
payers have not been sufficient to war
rant an estimate. A great majority Of
the persons affected by the law have held
back their returns pending the decision
of the court.
Notwithstanding the decision rendered
to-day, Commissioner Miller says he does
not propose to recall the blank forms
issued, but he will issue a revised set of
Instructions to the collectors OF internal
revenue to meet the decree Of the court
AS to the exemption of state and mu-
nicipal bonds, Commissioner Miller IS not
prepared to state how much the govern
ment will lose from that source. lie
is not discouraged, but insists that the
provisions Of the law, will be enforced
just as If there has been no modihca-
tion of the details of the act. The col
lectors will be directed 70 omit such
items as may be in conflict with the decis-
make the collections upon the other
items The penalties will be enforced
wherever an attempt is made to evade
or violate the law. Persons may protest
| and they may appeal to the courts, but
so long as the law Is operative, IL will be
enforced to the letter.
Commissioner Miller regrets that COM
plications have arisen in connection with
the income tax, for the difficulties sur
rounding its collection are numerous
enough without further legal obstacles.
A prominent treasury official, who be-
lieves that the income tax provision has
received a vital blow by the decision OF
the supreme court, predicts that the
government will eventually expend almost
as much money to collect the income tax
as will be derived from 1t. He suggests
that it would have been easier and more
practical had congress placed additional
tax upon beer and whisky instead of Gre
ating an income tax. An extra tax on
beer and whisky could be collected with
out the employment of an additional force
and the consumers of malt and sprtu-
Gus liquors might have protested, but
they would have paid the tax with less
trouble TO the government than is en-
tailed in the collection of the income
tax.
any one else, antagonized the enactment
of the income tax INTO law when it was
before the Senate, was an interested spec
tator and close listener In the court room
when the opinion was handed down to-
day. His presence was accidental, how
ever, as he was called here from Albany
to argue New YORK case that was on
the calendar for to-day.
He remarked afterward that he enjoyed
listening to the vindicauon of his course
in the Senate against the income tax more
than in pleading the case on the docket.
While Chief Justice Fuller was reading
the opinion of the court Senator Hill sat
in the middle of the bar, with Senator
Hunton of Virginia, on his left and eX-
Secretary of the Treasury George s. Bout
well of Massachusetts on his right. He
followed the reading closely and smiled
approvingly at intervals. He showed the
keenest appreciation OF the vigorous con-
demnation of the tax by Mr.. Justice
Field, who was the only member of the
court who contended that the entire act
He is greatly pleased at the result of
the case, and discussed the effect Of the
decision.
y am naturally 4,,.Isg Igratifled;t" he
court by vote of to 2
on two important questions involved in
the act. They are both questions l had
carefully considered and vigorously
pressed in the Senate among other obJec-
tions to the law For myself l have
never had any doubt that the tax i'm
posed by the income tax law, is a direct
tax in all it's features and hence, an un-
constitutional tax. ] naturally think the
opinions Of Justices Fuller and Field are
very able and convincing and will re-
ceive the approval of the bar throughout
the United States
There never was any good reason for
the enactment of the income tax law. 1t
was pressed upon congress by a lot Of
/ populists, socialists, eranks and disturb
ers and their views were unwisely adopt
ed. IT was class legislation of the worst
kind. From a political point of view. 1t
was the hight of folly to adopt legisla-
tion of that character. 1t had never been
laid down as a democratic principle, nor
adopted in any platform. It was roisted
on the party in an effort to get votes from
q class of people who did not vote the
ticket in consequence of our adoption of
the Law and never will. 1t antagonized
the business community, delayed the adop-
lion of a tariff reform bill, and has in
iured the Democratic party ever since.
seTbe effect of the decision WILL in my
i,,dernent. be excellent for the country.
have no doubt but that the whole act will
eV7entually be declared unconstitutional.
The frst act of the next congress should
be Ia repeal the law and atone for our
bnnder: unfortunately the republicans
viii get the benefit Of the repeal 1t
v1olld be the most supreme folly on the
mart of the Democratic party to attempt
II maintain an income tax law now, when
some Of its principal features have already
been declared to be unconstitutional by
= vote of six to two, and when the whole
act Is believed to be invalid by at least
one-haIf Of the judges who heard the ar
gumcnt. The true policy for the country
and the Democratic party to pursue Is to
iet the general government collect its
revenues by tariff taxes and limited
amount OF internal revenue taxation
49, rta