The citizen. (Honesdale, Pa.) 1908-1914, 1910-03-04
FOR INCUAE TAX.
Senator Root Takes Issue
With Governor Hughes.
WANTS AMENDMENT PASSED.
In Letter Read to New York Legis-
lature He Urges That Measure
Gives No New Federal
Taxing Power.
WANTS AMENDMENT PASSED.

Albany. y. Y. March IA letter /
from United States Senator Elihu |
Root to State Senator Frederick NJ /
Davenport taking issue with Governor
Hughes on the Taft federal income /
tax was read in both houses Of the
legislature. The report was referred
to the judiciary committee of both
houses In his letter Mr.. Root said:
Much as | respect the opinion OF
the governor Of the state. | cannot
agree with the view expressed In his
special message, and as | advocated
in the senate the resolution to submit
the proposed amendment it seems Up
proprlate that | should state my view
of its effect.
"The objection made to the amend
ment is that 1t will confer upon the
national government the power TO tax
incomes derived from bonds issued by
the states or under the authority OF
the states and will place the borrow
ing capacity of the state and its gov
ernmental agencies at the mercy of
the federal taxing power.
II do not find in the amendment any
such meaning or effect. do not con
slider that the amendment in any de-
gree whatever Will enlarge the taxing
power of the national government or
will have any effect except to relieve
the exercise of that taxing power
from the requirement that the tax
shall be apportioned among the sew
eral states. The effect of the amend
ment will be, In my view, the same as
If 1t said, The United States may lay
a tax on incomes without apportioniuc
the tax, and this shall be applicable
whatever the source of the income
subjected to the tax leaving the qucs-
ton. What incomes are subject to ma
tional taXationT to he determined by
the same principles and rules which
are now applicable to the determina-
ton of that question.
THE amendment consists of single
sentence, and the whole of it must be
read together 1t expresses but sin.
gle idea. AMI that is that the tax to
which 1t relates must be laid and col
lected without appOrtionment among
the several states and without regard
10 any census or enumeration, while
the words from whatever source de
rived are obviously introduced to
make the exemption from the rule OF
apportionment comprehensive and mp.
plicable TO all taxes on incomes.
This amendment will be no new
grant of power. The congress already
has power TO impose taxes on incomes
from whatever source derived, subject
TO the rule of construction which eX-
,cludeS state securities from the opera
tion of the power but the taxes so i'm
posed must be apportiOned among the
states. Under the proposed amend
ment there will be the same and no
greater power to tax incomes from
whatever source derived, subject to
the same rule of construction, but re-
lieved from the requirement that the
lax shall be appOrtiOned.
1T appears therefore that no dan
ger TO the powers or instrumentalities
Of the states is TO be apprehended from
the adoption of the amendment.
1T would he cause for regret If the
amendment were rejected by the leg
islature of New York.
at is said that very large part of
any income tax under the amendment
would be paid by citizens of New
York. That is undoubtedly true, but
there is all the more reason why our
legislature should take special care 10
exclude every narrow and selfish mo
tive from influence upon its action and
should consider the proposal in spirit
of broad national patriotism and
should act upon it for the best inter
ests of the whole country.
THE circumstances that originally
justified the establishment Of the rule
of appOrtionment in the constitution
have long since passed away. 1t II
universally conceded that its applica
tiun TO existing conditions would be 81
unjust and inequltable as to be impos
sible. The power of taxation whicl
the rule makes it impossible for tn
nation To exercise may be again, as
has once been, vital to the preservation
of national existence. 1t would b
most unfortunate if the several state
of the Union were to insist upon tn
continuance Of this unjust and useles
Limitation upon the necessary power
originally and wisely granted TO tn
national government"