Omaha daily bee., 1910-01-11
Income Tax and States Rights.

49, AA Ia ~.
While Governor Hughes informs the
New York legislature that he favors
comforting upon the federal govern
ment the power to levy and collect
an income tax, he advises adverse ac-
ton on the proposed constitutional
amendment because its text, as sub
mitted by congress includes incomes
from whatever source derived I'm
der this, the governor fears, taxation
Of incomes derived from municipal or
state bonds might destroy the states
borrowing power and thus invade
states rights. The point, which is
a new one, has been asked by o the
democrats as a basis for the yelp that
the republicans in submitting the
amendment played a trick upon the
people. Such criticism is somewhat be-
lated, in face of the facts on record.
The form. of the proposed constitu-
tional amendment, and the resolution
presenting It to the states for approval,
we're adopted in the United States SEN
ate on July 8 by unanimous vote, after
Senator Bailey of Texas had volun-
tarily Withdrawn his amendment which
provided for a graduated income tax.
Senator Stone of Missouri read from
the Denver platform extracts to estab-
fish on behalf of the democratic party
a prior claim to this particular piece
Of legislation. The resolution and
fc-, Of amendment were adopted in
thu mouse on July ~, by a vote of 317
to IA, the democrats voting solidly for
it. Representative Clark, as minority
leader of the house, won rousing APP
plause from his democratic associates
by claiming for his party the credit for
the proposition. Not a democratic
voice was heard in either senate or
house warning the nation of any in
vasion of states rights, nor even re-
motely suggesting a republican trick.
If our own Congressman Editor Hitch
cock had been in Washington, he
would have voted with his fellow demo-
Gratis for the measure; If absent, his
paper was presumably still run by him,
yet diligent search through its files
fails to disclose any cutlery Of alarm.
Indeed, the first editorial utterance
in the World-Herald on the subject of
the income tax after the passage of the
resolution by congress, is a rebuke to
Mr.. Payne for his suggestion that the
enforcement of such tax would make
Of us a nation of liars" This demo-
cratic editorial, published July 10,
after one weeks deliberation over the
congressional proceedings, closes with
the significant confession, I'VE are al
ready liars, u.s."
Not only is the belated shrek of the
democrats a singular reputation of
their boast of last July that this in
come tax amendment was their Off
spring, but 1t is a further fact that
the point raised by Governor Hughes
is a purely theoretical one, indicating
solely an invasion of the sentiment of
states rights, not actually the rights
themselves. For by the language OF
the proposed amendment congress
would be merely given the power, and
1t is not to be supposed that any power
given to it for the laying and collec-
ton of a tax on Incomes would ever be
applied to ~depreoiate state and muni-
cipal bonds. The national lawmakers re-
sponsible to their several states, would
hardly do anything to harm them de-
liberately just because it is possible.
Now that the democrats are re-
minded of their Wanted paternity of
the amendment, are they going to con-
tinue their claim that the republicans
have foisted a monstrous founding
upon the people?. AS between their in
come tax professions and their states
rights pretense, they seem to be in a
panic over the question Of paternal
recognition,