Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-09-28
is NOT MADE CLEAR
Dilemma Created by Taft's Ref
erence to Income Tax in
Acceptance Speech.
POSITION SHOULD BE KNOWN
Would He Tax Only Labor, or Would
He Have States Pay According
to the Population?

Mr. Tafts views on the income tax
deserve more attention than they have
received. In his speech of acceptance
he says:
81 believe that an income tax. when
the protective system of customs and
the internal revenue tax shall not fur
nish income enough for governmental
needs. can and should be devised
which, under the decisions of the su-
preme court. will conform to the con-
stitution"
From these words we learn when
Mr.. Taft would have an income tax
enacted and what sort of income tax
ne thinks SHOULD be devised
First.-He would have an income
tax when the tariff and internal rev.
enue taxation do not furnish income
enough for governmental needs"
when enough money cannot be got by
taxes on consumption. That time
manifestly will never come unless per-
haps in the course of an eXhaustng
war. Mr.. Taft does not want an in
come tax now for the purpose of coun-
teractng in some measure the injus-
tice of taxing heavily the necessities
and comforts of life, system which
taxes the poor at enormously higher
rates than the rich, which practically
excuses wealth from any share in the
burden of supporting the national gov.
ernment.
Second.-The income tax which Mr..
| Taft favors is one that under the de-
| cisions of the supreme court will con-
| form to the constitution" He SAYS
| that constitutional amendment is I'M
| necessary. In the latest decision of
| the supreme court, which SupersedeS
| all others in conflict with it. the in
| come tax law of 1891 WAS declared in
valid not because all taxation of in
comes is unconstitutional unless appor-
| toned according to population, but be-
cause 4 tax on incomes from real and
personal property is unconstitutional
unless so apportiOned. Besides tax
ing incomes from property, the in
come tax of 1891 also taxed incomes
| from trades, labor and professional
employment. This part the court did
| not declare unconstitutional, although
the invalid parts of the law of 1894
| were considered so important parts of
| the scheme adopted by congress as to
drag down the valid part with them
| and make the entire enactment void.
| But if tax on incomes from intel
lectual and manual labor We're sep
arately enacted by congress it would
undoubtedly be held to conform to
the constitution" Is this the sort of
income tax which Mr.. Taft would like
to see passed when one is necessary
1t is the only kind of income tax pos
sible under the decisions of the su.
preme court unless the tax were ap
portioned among the states according
to population. Perhaps the latter
method is the one approved by Mr.
Taft The people should know which
plan he would favor.
Would Only Increase Injustice.
Taxation of incomes from labor. with
incomes from property untouched
would only increase the injustice OF
the present system, for labor now bears
more than its share. A tax on all in
comes apportioned to the states in
proportion to population would work
the greatest injustice to the poorer
states, in which the average income
per inhabitant is but small fraction
of the average in the weather. states
Each of these plans is SO unthinkable
according to all standards of fairness
that it has been suggested that Mr.
il Taft must have had in mind prob
able reversal of its latest income tax
decision by the supreme court, las IL
may hereafter be constituted" But
this conclusion is impossible even il
we thought Mr.. Taft likely to adopt
the Democratic plank Of 1896. He
says that his income tax will be valid
under the decisions of the supreme
court" not by the reversal of the last
decision, the one that is now the su.
preme law of the land and overruled
all earlier decisions not in harmony
with it. His income tax must be the
tax on incomes from labor or a tax to
be paid by the states in proportion to
population. Which is it?
JESSE T. ORION.
Ill