New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-02-08
FAVORS INCOME TAX
FORT INDORSE.S PL4N.
Governors Message 1drocotes
.4pprordl of amendment.

Trenton. y. J.. Feb 7-Governor Fort
transmitted to the Legislature tonight the
--onosed income tax amendment to the fed
eral constitution passed by Congress with
a recommendation that it be anproved
The Governor states that an income tax is
the most lust and equitable that can be
levied. 1T imposes the exactions of gov
ernr,ent.'' he says. upon the citizen in pro-
norton 10 his ability TO bear It and upon
the basis of the wealth which, under the
laws of the country, he has been able to
accumulate" The inability to impose an in
come tax If the necessities of the govern
ment required it, he says, would amount
to national calamity. The message in
part follows:
An income tax + 4 tax which Is sure 10
reach all classes OF property, real and per-
Sonal.
The United States should possess the IN
questioned power 10 tax incomes 1t NAV
not he necessary 10 use the power, but Il
emergency should arise which requires II
the right to tax should exist
Criticism OF the amendment nereWtn
transmitted is made upon the gTound tnht
under il the income upon state or nlunlCl-
pal securities might be taxed why TINS
should not he L am quite unanIe 20 see
The argument made is that q tax upon IN
comes from this source might 81 decrease
the value Of such securities in the market;
60 that Congress might. through snch q
Neither OF these suggestions seems 10 me
TO have force.
suppose / per centum Of tax we're 10 be
the holder of 4 81 .oon per cent state or
municipal bond would pay an income tax
on $40 a year. which would amount to 10
cents per annum.
If the patriotism Of our citizens and the
interest of our financial institutions VINO
take and hold state and municipal seCuri-
ties is at 50 low ebh as TO cause Such
a tax to affect the value of state or n1n-
nicipal securities. are indeed III an IN
fortunate condition in the Republic No
one can believe that such condition exists
AS to tho claim that the federal govern
ment might jniuye the states as such. ny
taxing state bonds under an income tax
there are two satisfactory answers;
~ rSrdhe o9nesE IS n Pre- Titzanshin
thereof. and the remedy Is in the HANDS
of the people of the states by not return
Second-The patriotism of our people is
such that no Congress could he elected
that would lay any tax with view OF
destroying the power or integrity of the
states II this be not true. the relation
of our states to the Republic is surely Of
much less Importance than many OF US
have hitherto supposed.
Under a republican form Of government
the people rule and they can be safely
trusted to see that their TepresentativeSs
taxation or IN the curtaiing Of TIE rights
Of the states or otherwise Nor am | tn
clined 70 accept the statement that the
Supreme Court of the United States might
construe the words from whatever source
derived" as found in the pending amend
c,Irities OF any other taxing power. There
is no express provision in the federal Con
stitution at present prohibiting the Con
rress from imposing an income TAX upon
the securities of 2 state. Get in the Pol
lock case tsUpra) the court held, speaking
through Chief Justice Fuller, at page 5S3,
z follows:
The Constitution contemplstes the in
dependent exercise BY the nation ana ms
powers As the states cannot tax the
powers the opera lions. or the property
Of the United States nor the means which
they employ 70 carry their powers into
execution 50 il has been held that tho
United States have no power under The
Constitution to tax either the instru-
mentaIitias the property Of 2 state A
municipal corporation is the representa-
tive of the state and one of the instrU-
mentalites Of the state government. 1t
was long ago determined that the prop
erty and revenues Of municipal corpora
tons, are not subjects of federal taxa
ton
To support this opinion IF the Chief Ju~-
lice numerous cases are reviewed and
cited.
which is founded upon public policy.
would obtain in constituting a constitu-
tional provision equally as firmly as in
Words in a constitution are no more
forceful, nor are they differently con
strued than the same words in law
of the United States Up TO this time has
been the sure reliance not only Of the
nation but Of the states. The future may
be safely rested there
The inability 10 impose an income tax
If the necessities OF the government re-
ouired it. would amount TO d national
calamity.
The Congress practically unanimously
adopted and submitted this proposed
amendment. 1t is vital 10 the safety and
security Of the Republic in time of need
and is without danger in the power CON