New-York tribune., 1910-04-22
ALB4yY AND THE INCOME TAX

ALBANY AND THE IACOME TAX.
The vote in the Assembly on the con-
current resolution for the ratification Of
the income tax amendment TO the fed
eral Constitution disclosed a disposition
on the part Of an apparent majority OF
that body 10 be governed by other mo-
tives than the prudent safeguarding Of
state and local interests. The attitude
Of the minority party was especially
regrettable. With the exception of.
Messrs. Chanler. Of Dutchess. and
Shortt. OF Richmond. all the Democrats
present voted for ratification, sacrificing
considerations OF state advantage and
expediency TO the dictum of the national
organization TO which they belong.
Their fidelity 10 a Democratic national
platform was stronger than their fidel
ity 20 the interests OF the common
wealth which they are supposed TO serve.
In order 10 redeem a pledge made else
where for the benefit of the smaller and
poorer states these ultra -nationaliStic
Jeffersonisns are willing TO give their
approval as New York legislators TO a
method Of federal taxation which, If
"PffAAOAs NbUlu lftudilLt New lNEk.
The fifty-two Democrats and twenty
two Republicans who voted 10 ratify
the pending amendment voted 10 tax
this states instrumentalities and 10
diminish fits taxable resources in an op-
pressive ratio which is 10 he applied -
no other state. The amendment explic-
itly subjects TO taxation for federal pur-
poses income from whatever source
derived" 1t would therefore. il put into
full effect render taxable income de-
rived as interest from state, city and
county bonds. The value OF such secu-
rifles would be impaired by this deduc-
ton from the return which they WELD.
and the state and its sub-aCencies.
being forced 10 sell bonds at lower fc-
ures or 10 expend more in interest
charges. would virtually have to as
sumo the burden imposed by the federal
government. New York has q larger
aggregate Of state. city and county
debts than any ether commonwealth. It
would. therefore. suffer relatively more
from taxation Of income from state So
cur1ties than any other member Of the
Union.
II is argued. Of course. by some Of the
defenders Of the amendment that under
its terms Congress cannot tax income
from state securities, because. as the
Constitution has been interpreted up 10
date. state instrumentslities are eSsmpt
ed from federal taxation. But this ar
gument mininizes the fact that the
amendment. with ifs sweepinr clause
from whatever source derived" 1lpsets
the old Interpretation The Sixteenth
Amendment If ratified. cannot be con-
suued In accordance with the ljn,ita-
tions Of the Constitution as il now
stands. On the contrary. those limi-
tat.ons must be modified in the light Of
the new matter injected into the Constl-
tuition. ..--.
In another way also New York will ha
Disseminated against if tba amend
ment Is ratified and a tax is imposed.
VI the federal income taxes collected
from 1868 10 1865 New York paid 30 per
cent Its share under q new income tsr
law, with r $1,000 exen, ,tion Limit
would probably be even more dispropcr-
tionate. Yet this state needs 10 CON
serve its resources as carefully a. any
other state. It has vast claims IN n,,.cf
which are becoming vaster every wear
A brief recently submitted 10 the Tpr-
lslature justly said on this point.
II New York wants canals. or high
ways or water systems, or rapid tran
SIT or conservation Of forests. efc her
people must supply the funds. and l,,n-
oreas OF millions Of dollars will bs,-a
70 De provided in the future 10 nav ex-
lslng dents and to meet future needs
lhese state and mUnicipal dehts No.
amount TO over $780, O00o. 600. and We
must unavoidably incur additional in
oebteoness every day. Hence the reason
why the property of the states should he
reserved 10 meet the necessary and cor
sJantly increasing needs OF the states
unless var calls for the sscriflcs of
property
The Legislature would do well to con.
slider the advisability Of ratifying or
not ratifying the pending amendment
from the pertinent and practical poipt
OF view Of its effect on New York To-