The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-04-09
ATTACKS RIGHT
OF INCOME TAX
CONSTITUTIONALITY OF LAW
rs TO BE TESTED.
Means $4,000 in Revenue-The
Plaintiff is MIR. j. o. G. Fleming
of Laurens, a Prominent Mer-
chant and Banker.
The State, nth.

a hearing will be held before the
state supreme court on April 27 on
the utionality of the inpome
tax (law. The hearing will come up
on petition of j. o. C. Fleming, a
prominent merchant and banker of
Uaurea,s, whose attorneys Wednesday
secured a temporary injunction from
Chief Justice Pope restraining C. A.
Power, county aMaitdr Of LaWrcns
county, from taking any further
steps toward enforcAng the terms of
the said act against the petitioner
until the question of its constitutions
ahty has been determined.
The hearing will be held in the ST.
preme court room at Columbia at 10
o'cloel1 i1 thc morning. Attorney
General Lyon and Assistant Attorney
General DeBruhl will represent Coun-
ty Auditor Powers, while Messls.
Dial e. Todd cf the Larcns bar will
represent Mr.. Fleming.
This mctittA raises a question of
much Importance to South Carolina
and jeopardizcs about $4,000 Of the
atate Is annual' revenue from taxes,
it being estimated that This act
would bring in at least that much
This year.
The petition for INJUNCTION sets
forth that the petitioner is the owner
nf considerable property, real, per-
Sonal and possessory, and is engaged
in the business Of merchandising and
farming, and from 'his property and
Nocations derives an annual income i'll
"~ceSs of $4,000 and is, therefore,
amenable to the provisions of the lnL
come tax act; tlnat petitioner has
luly made a return according to law
of all Of his said property for the
vear 1906, wlrich will constitute a
lien upon same for all state, county,
schcl and municipal taxes.
That the rcspoEdent. G. A. Power,
"la!mS the right under the income
tax act, approved 5th day Of March
1897. TO require of petitioner a re-
turn, under oath. Showin" the amount
CT gross income received by petition
"r during the year enair3m Dee. 81,
1906. as rent, interest. salary, etc.,
from any profession, tradc or en-
nloypncnt and from other sources,
'lcductin@ thcrcfrom only the expen-
''aS iIcurrcd in carrying on his bust
| ness, occupation or profession, but
not including remuneration for per-
sonal supervision or mairt csmncc of
family. and also MOT incnldinw any
faxes raid by petitioner upon proper
ty. real, personal or p@SsrSSnry. owned
by him during 1.-THE said period and
fnm which the said gross income is
derived: that respondent asserts that
hc 'has thc right upon the failure Of
petitioner TO make return as re-
quired under the incrme tax act to
make the same for him in such an
amount as appears just from the.
best informatiow olft ainablc: that pc
titinner has been served with notice
that he has been assessed OH an in
come Of $4,000. The tax on which will
amount to $50, and that respondent
tmreatens to charge up against him
on tho books kept for thad purpose
an additional sum Of so per cent. of
d'hc said tax as penalty for failure
to make return.
That thc said income tax act, in
imposing a tax upon petitioners in
come and in requiring a return from
him alAd in imposing a penalty upon
him for failure to make return is H.
legal. unco. constitutional. null and void,
in that it is in violation Of section 1
of article 10, Of the constitution of
South Carolina, which provides for
uniform and equal rate Of taxation
To be imposed 50 as TO secure just
valuation for taxation of adj proper
ty, real, personal and possessory, and
also for graduated lax on incomes :
whorcas, said bAcomc tax act does
not impose a uniform and equal rate
Of assessment and is not graduated
! according to The sense and intent of
the constitution; tlrat in imposing
an income tax upon the income of