The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-02-24
BROWN SPEAKS
ON INCOME TAX
Senator From Nebraska Takes
Up Question Very Fully
HARD RAP AT HUGHES
Senator brown Discusses Attitude of
Ne. York Governor Income Tax
And Tries TO show Where the
Latter Is Wrong
HARD RAP AT HUGHES


Washington, February 2S.-Admtting
that he had greater respect for New
York in the Senate than for New York out
of the Senate" Senator Brown of Ne
braska, author of the income tax amend
n.ent, today Joined the debating society
which is composed of Governor Hughes
on the one side and some of the members
of the United States Senate on the other.
Mr.. Brown spoke in the Senate on the
re solution of Senator Borah directing the
Senate committee on judiciary TO make an
inquiry concerning the legal effect upon
state securities of the adoption of the in
come tax amendment 10 the constitution
He devoted his efforts specially to DEM
onstratng that the New York governor
had been wrong in his assumption that
the amendment would have the effect of
laying a burden on the states and in
showing that even If it did have that eff
feet it should be adopted by the various
state legislatures.
Accepting the governors pronouncement
as an evidence OF opposition, Mr.. Brown
Hughes stands alone among all the COVER
nors who have addressed their legislatures
on the subject of the amendment.
Alabama, Ohio. Virginia, New Jersey
and other states have governors who not
only favor comforting the power" he said,
"but favor the proposed amendment
which if adopted confers the power. 1t
cheers our heart to read in the press that
President Taft agreed with the governor
of New Jersey, who, in a message to
his legislature, February I, and since the
New York message was transmitted, took
immediate and direct issue with the gov
ernor of New York.
Calling attention to the fact that no one
III Congress or out had pointed to the pos
sibe effect of the amendment on state
affairs, Mr.. Brown said:
I'm this body Hae state of New York
enjoys presentation of the very highest
character and most eminent ability, and
yet New York on the roll call, as shown
in the Congressional Record, was in favor
of this amendment as it passed Congress,
and was silent as to any suggestion that
the language was faulty. l have greater
respect for New York in the Senate than l
have for New York out of the Senate on
this question.
THE fathers provided that amend
ments to the constitution should be rati-
fed by state legislatures. The approval
of the governors is not required. They
do not even have the power to veto a leg
islative ratification resolution of any pro-
posed amendment, althugh / suppose as
a friend of the state, sort of amicus
II.
less veto in advance of action by the leg
slature if he chooses TO do So
He contended that the amendment does
rot alter or modify the relation today ex-
listing between the states and the federal
government.
That relation will remain the same
under the amendment as 1t is today with
out the amendment he said. 1T is con-
coded by all that the government can
rot under the present constitution tax
state securities or state instrumentalities.
Nor can the state lay its taxing finger on
federal bonds or federal agencies. Each
is beyond the reach of the other, SO far
az taxation is concerned. The proposed
amendment in no sense seeks. nor can it
reasonably be argued to suggest, any
change in the independent or sovereign
rights of either society as enjoyed and
defined by the courts ever since the gov
ernrnent was organized.
: still it does not follow, even if Gov
ernor Hughes were right, that the amend
ment would be rejected. On the contrary
il follows that it should be ratified, be-
cause under the Interpretation all incomes
would be treated alike. No exemptions
would be allowed and no exceptions per-
mitted save as Congress might and should
exempt all incomes up TO a certain
amount"
Arguing that as the safety OF the state
depends on the safety of the nation, he
said:
Should a foreign fleet lombard the
city of New York / can imagine the Dor
rowing capacity of the Empire state
might be impaired But the impairment
would be measured by the danger the
assault brought to the republic. In other
words, New York's credit will be protect
ed In proportion 10 the ability of the fed
ersl government to protect itself against
the enemy.
When regiments must be equipped and
armed, when battleships must be rushed
to the scene of danger without counting
tho cost this government should have the
power to lay its tax upon the incomes of
those who have them. I hope the emer-
gency I have described may never arise
But should 1t come the republic should
be clothed with full and ample authority
to lay just share Of the burden upon the
income of the whole country
He declared that il New York should
reject the amendment 1t would do SO be-
cause of inherent objections to any tax
on incomes and not because OF any fear
of the effect on her borrowing capacity
Indeed, the experience of all income tax
ing nations had shown that the credit
of the state is not impaired byfimposing
a tax on its bonds Asserting that the
perpetuity of this nations plan Of govern
ment depends on the co-existence of the
state and federal authority, he said that
neither could be destroyed by an amend
ment to the constitution. If that must
exist at all it must come through revolu-
ton, and he did not believe revolution
to be in sight.
PRESIDENT TAFT