Bisbee daily review., 1910-05-21
THE CLIPPING THAT
CUTS BOTH WAYS.


Uade- the eoasutut.os OF the
United States congress cannot lay
taxes on the property OF the states
nor can it force the states to pay foT
the exercise OF their constitutional
rights. nor can it by laying tax on
state bonds and the income therefrom
prevent or restrain the states from
using their credit 10 raise or borrow
money for their needs
UnGer r~Asent conditions toe ma
tional government Ssanot place any
Of these impositions ON tho property
Of a state. nor exercise amy OF these
restraints upon states constitu.
ticnaI acts. stin the central govern
ment wants TO be able to dominate
and shaclle the states in all these
matters. but fortunately it cannot do
30 except by the consent OF the
states. and it is hoping TO gain such
consent by a very cunning trick. says
he Picsyune. which proceeds TO op-
pose the adoption Of the income tax
law in the following:
What the national government is
trying 10 do is 70 tax the incomes
On all state and municipal bonds
which cannot be taxed under state
laws. but this attempt at the dom
inat'on of the states is concealed IN
Ter the following ingenious device:
"A constitutional amendment has
been proposed by congress and Is
now before the legislature Of Louisi-
ana which asks authority for the
United States 10 tax all incomes
from whatever source derived The
idea of taxing the incomes Of rich
uen and great corporations is ex-
tremely popular with the masses of
,4e American people. and as the PEG
pc themselves do not scrut nize mat
tors Of public interest. and trust such
Alngs to their political leaders. who
ace too often mere Somagogues. there
IS great danger of the measure go
ne through on a wave OF popular
,ayor
But II the tax on incomes we're to
b. laid only on the rich men aad
powerful corporations. the measure
night be well enough. but the pro
posed amendment IS so cuaniagly
wordec that IS would Tax the fl
comes Of the states from whatever
source derived. The patrols who
irst took alarm and sounded a warn
ing Of the blow that was aimed at
The states believed THAI the proposed
tax would only reach the parties
who hold state bonds and draw inter
est on them. but as a matter OF fact,
VI der the simplest and most direct
conservation Of the proposed amend
nent It could be extended to the
leYying Of a federal tax on the en-.
tire income Of the states, whether
derived from taxation OF from the
sale of public lands and franchises.
The proposed amendment taxes
all incomes from whatever source dc
rived. and. therefore, no Units are
set to what is taxed If only It be al
income. Thus it Is attempted to dc
ceive the people Of the states intC
giving the national government IN
limited powers of taxation over then
by offering them the spectacle OF al
rich men and powerful corporations
taxed. IN order TO enjoy the salts
faction at seeing a blow struck a
the aristocrats of wealth. the people
are asked to put themselves and th'
credit Of their states and cities Il
the same trap.
THE first statesman who sav'
warning Of the dangerous trick tha
was being played upon the states
WIS Governor Hughes Of New York
recently appointed a justice of the
! U sIted States supreme court. wha
ne saw was that If the incomes de
riEed from the state and munic'pa
bonds. freed by taxation by the STATE
issuing them. could be taxed by the
national government they would lose
an the advantage they now EMO,