Evening star., 1909-07-05
INCOME TAX IN DANGER
Belief in Congress That States
Will Not Ratify Plan.
FIRM OPPOSITION IN EAST
Capitalists and Proteotionists Ex-
pected to Effect Defeat.
HOUSE TO PASS RESOLUTION
Sure to Oppose Submission to People
of Proposed Amendment
to Constitution.
HOUSE TO PASS RESOLUTION

Firm belief it is of many statesmen in
Congress that submission to the states of
a proposed constitutional amendment au-
thorizing imposition of tax on incomes
will remove the question of an income
tax from congressional discussion for
some time to come.
! It will become a burning issue in the
states. But it is not expected that the
echoes of the struggle will resound in the
halls of Congress.
! The first effect of the submission, it is
4 contended. will be to give formal acuui-
escence of Congress to the decision of
the United States Supreme Court in the
income tax case decided in the Cleveland
administration. BY the action now pend
ing, it is argued, Congress goes on rec
ord as admitting that the decision was
final and the case should not be retired
! This is expected to cut off the offering
of future income tax amendments which
otherwise would bob up at every session
of Congress.
! Proposition May Be Killed.
| 1t is also the belief of a great many
men in Congress that this action ulti-
mately means killing the income tax
proposition, because, in the opinion of
! these men. it will be impracticable TO
| secure ratification of the amendment by
the states BY twelve states Withholding
ftheir sanction the amendment will fail
of ratification Undoubtedly strong op-
position to the amendment will be aroused
in New England and the seaboard states
| and powerful machinery will be set in
| motion to defeat it.
Opposition is expected to come from
! two main sources: FIRST, from the ultra
| conservative and capitalistic element and
second. from tie high protective tariff
section in the industrial commemorative
| 1t is said by thoughtful men in Congress
that the conservatives will oppose vest
/ ing in Congress the constitutional author
| ity to enact an unlimited form of income
/ tax. They will be afraid that in times
| of great popular emotional uphearals.
with new parties coming into power under
the leadership of demagogues it will not
| be safe to put into the hands of a mere
majority in Congress the unlimited
authority to tax wealth and vested rights.
/ Protectionists Take Alarm
| The protective tariff sentiment in the
region east of the Alleghenies will look
with apprehension upon the substitution
of this new form of taxation for raising
revenue through customs receipts with
the accompanying protection to American
industries. The most of them would be
| inclined to fear that il il should prevail
/
| a few years.
They certainly apprehend. il is said.
tha the piling up of a great revenue
through income taxation would remove
the incentive to raise revenue from Gus
toms. and they are not altogether certain
that the system of protection is SO deeply
rooted that it can stand on the one prop
of protection alone. Indeed it has been
openly declared in the Senate that one
argument in favor of the income tax is
that it will subplant the protective tariff
customs of revenue raising.
| Politicians are looking forward with
keen interest TO the coming struggle In
the states over ratification. 1t is prophe-
! sled that there will be a grand scramble
| to get on the band wagon, and every lit
tie two-byfour politician will aspire TO
be the original income tax advocate. They
| will vie with one another, 1t Is said, to
out-Herod Herod in their advocacy of the
new form of taxation and onslaughts on
the accumulated wealth of the country.
Every One Will Be Hurt
They will find one difference between
this form of taxation and tax on corpo-
| rations.' said cynical senator today,
! land that is it will strike every one. The
! farmer who looks with equanimity now
upon the proposed tax on the incorporated
concerns in the town where he does his
| trading will find that his income from
| his lands and crops will have to pay.
THE property owner who has some
yearly rentals from houses bought as in
| vestment will have To settle. Lawyer and
| doctor with good practice and clientele
will contribute. Salaried officials will get.
caught sure.
| when these realiZations begin to soak
| in, the men who will have TO tight ratifi
cation will probably receive some silent
| help
| There is no question that the House
| will pass the resolution submitting the
constitutional amendment. Those who
| oppose the income tax will vote for it
| because they see a chance for sidetrack-
| ing and possibly ultimately wrecking the
| plan.
Those who want an income tax will
vote for it because this seems at present
| the only way which holds out bare
| possibility of ultimate success.