New-York tribune., 1909-10-08

MASSACHUSETTS, AND THE INCOME TAX.
The attitude toward federal taxation Of in
comes assumed by the political parties in Mas
sachuserts is of general interest, because Massa-
chusetts is one of the states which the bur
den Of a federal income tax not apportioned
according to population would fall with dlspro-
portionate severity. Having like New York and
Pennsylvania. great deal of concentrated
wealth. the Bay State would have TO pay into
the Treasury az Washington a sum much
greater than would fall to its share an assess
ment under the present constitutional restric
tion. Massachusetts leyies an income tax for
state purposes SO that were the federal gov
ernment TO resort 10 income taxation, the re-
sources Of the state would either be doubly bur
dened or the state Treasury would have 10 sur
render a present source of revenue. The situa-
tiou is therefore a complicated one the prac-
teal disadvantages of a federal charge on in
comes arraying themselves against the theo-
rctical approval given 10 that form of taxation
by the states own domestic practice.
The Democratic State Convention, held last
THURSDAY declared Internationally in favor OF
the ratification of the income tax amendment
recently submitted 10 the states by Congress.
Icing in the minority the Democratic leaders
grasped al the opportunity 10 make political
capital cut of an issue supposed 10 possess the
merit Of popularity. Perhaps they were also
influenced by the fact that the last Democratic
National Convention explicitly committed the
party 10 the policy of constitutional amendment.
The Democratic national organization has long
favored federal income tax, with or without
a change in the Constitution and the only Dem
ocratic Congress in our time wrote such tax
into the Wilson Gorman tariff bill, only to find
il invalidated by the Supreme Court because ii
conficted with the clauses regulating the impo-
sition of direct taxes. AS party without
SpOnsibility in the management of state affairs
the Massachusetts Democracy evidently felt
20 obligation 10 consider the local effects Of
federal income tax legislation TO deal with
the invitation to sanction such legislation as a
matter OF business expediency rather than as
an issue Of partisan politics.
The Republican State Convention held two
days later decided not 10 take snap judgment
on the question of policy presented and favored
n fuller discussion Of ii by the voters and the
Legislature There could be no dissent from the
abstract theory on which income tax legislation
is based. since the Republican party in Massa-
chusetts has long sanctioned the principle of
such taxation. But IL was properly urged in the
resolutions which the convention adopted that
the states beneficial use of its own taxable
sources would certainly be hampered were the
federal government TO invade a field which the
local taxing power had already -empted The
issue was one of state interest against federal
interest, and the people of Massachusetts were
asked 10 consider whether it would he better
for them TO keep the federal tax collector out
or 10 let him III; whether they should vote to
retain exclusive jurisdiction over incomes
source Of revenue, denying Washington any
share should renounce all revenue from in
comes for the benefit of the nation or should
double the present burden on the possessOrs OF
incomes. taking half for state purposes and sur
rendering the other half 10 the federal Treas
ury. We think that no fault can be found with
the reasonableness of the conventions cOnclu-
sion. which was:
II is a question whether such tax shall he
collected for local for national uses. or
else IL is = question whether one such tax shall
be collected local uses and another for
tional uses. We believe that this question is one
that should be decided by the Legislature, not
as q political Issue. but a practical question
after fun examination and having due regard
10 the relative needs and the sources Of revenue
~ the national and local governments.
The ratification of the pending constitutional
amendment should not be made an issue be-
tween parties in any state. The interest Of the
state should govern, and that interest should be