Omaha daily bee., 1910-01-30
INCOME TAX AMENDMENT
Provisions Of Law Senator Brown
Seeks to Enact.
REACHES NEW PHASE OF TAXING
states Asked to Ratify the Action OF
Congress aud Subscribe 90 Prop
O%sitiOn TO = Referendum

cusses in the Outlook the proposed six
teenth amendment to the federal consti-
tuition now before the states for action.
arguing for the wisdom of giving congress
power to levy an income tax, should con-
gress in tho future decide that such a tax
is necessary. Without mentioning names
the senpfor decries the states rights issue
raised by Governor Hughes Of New York.
Senator Brown says, in part:
For forty-one years the constitution as
It now reads has stood with no sustained
effort on the part of ongress or the
people to further amend II. But at the
last session Of congress a joint resolution
was introduced and passed. receiving every
vote In the United states senate and all
but fourteen votes in the house Of repre-
sentatives. proposing the sixteenth amend
ment. 1t reads:
Congress shall have the power to lay
and collect taxes on incomes from what
ever source derived. without apportionment
among the several states and without re-
gard to any census or enumeration"
M question presented Is, should this
amendment be ratified by the states2 1
hold the affirmative Of the proposition
My conviction is unalterable that the safety
OF the nation may depend on the power
conferred by this amendment Its ratitica-
ton Is therefore imperative.
In the first place, the issue does not
raise a question of party politics On the
record. the Two great political parties or
the country stand in favor of the amend
ment. One indorsed 1T in its last national
platform. and both Endorsed it by voting
for the Joint resolution in the last congres
Needed Source Of Revenue,
This amendment should receive the sup
port of every man who believes as an
economic policy that the incomes of the
country should at all times bear a share
Of the burdens Of government IL should
also have the support of those who do not
believe in that economic policy in times Of
peace because other forms OF taxation rail-
in times Of war. No patriotic citizen can
deny his country in distress this source OF
revenue even If he would do so in times
Of peace and quiet. As the constitution
reads today under the last Interpretation
of the supreme court, our government is
without power to tax Incomes directly, no
matter what the need or how great the
necessity.
Section 8 Of article 1 provides that con-
gress shall have the power to lay and col
lect taxes, duties, imposts and excuses, This
provision OF section s is modified by an
kother provision Of section 0 of the same
article, which reads:
mo eapitation or other direct tax shall
be laid unless in proportion to the census
or enumeration hereinafter directed to be
taken"
From these provisions it is clear that
the trainers of the constitution intended
that the revenues with which to run the
.1,,Il he ~aIand hN nIlgfnm
duties, excuses and imposts. and not by
direct taxation. For it is obvious to the
casual student that to levy direct taxes on
either lands or incomes in proportion to the
population Of the states would work such
Inequality and gross injustice as to render
the tax intolerable and, as Supreme Justice
Brown said, Impossible"
During all the years of the country's
history no continued effort has been made
to lay and collect taxes on any kind OF
property, real or personal, apportioned &C
cording to population. However, at diff
ferent times in our history congress has
undertaken to tax incomes, Congress acted
on the theory that a tax on incomes wa
not a direct tax, and therefore need moi
be laid with regard to apportionmen'
among the states according to population
as provided in section 9,
Court Decisions.
From the beginning every law seeking t.
lay an Income tax has been assailed II
the courts. Beginning with the Hylon cas-
in 1889. reported In 8 Dallas, III, and ending
with the Springer case in 1880, reported II
1902 u. s., 5S6, the supreme court contin
uously and consistently held such a Law
unconstitutional. The opinion of the cour
In these cases rested or the proposition
that a tax on incomes was not a diFec
tax. and was therefore not inhibited b,
the constitution. twill be recalled tina
the Springer case involved the validity o
an act of congress passed during the re
bellion. The union was broken In cred
and the government at Washington wa
selling its bonds at a heavy discount, TIL
national currency had deprecated and tn
union was in urgent need of money wit
which to provide the union forces wit
maintenance and equipment. The life @
the union was at stake.
Congress had exhausted every resourc
except a tax on incomes, 1t was in ODE
dience to the cry of the country's distres
: that Lincoln asked congress to furnish tn
necessary funds by laying a tax on In
l comes. The law was passed; millions c
dollars were collected under 1t at a tim
when the government vitality needed tn
money. Springer assailed the constitr
t~lonality of the law. After fun argumer
ard mature consideration, the court su'
2 stained the law and springer's homestea
was sold by the marshal for the collectio
Of the tax, In so deciding the court TO
lowed the decision In the Hylton cas-
which involved the same principle.
, SO we find that the uniform and uniI
2 terrupted Interpretation OF the constitutio
by the court has sustained the power {
, congress to lay and collect taxes on 81
[ comes for nearly a century, But in Isl
the supreme court was called upon to pas
. for the third time on the same. question
The income tax law OF 1864 had been r.
pealed and a new statute restoring the Ia
had been enacted in 1894 A suit wa
brought to determine the validity Of II
1879! statute on the subject. 1t is know
Us the Pollock case, and is reported in l
L. s., 429.
Previous Decisions Reversed.
This suit involved the identical prime
l pie decided IN the Hylton and Spring,
e cases, II was argued with marked abilit
by distinguished lawyers on It's first SUI
mission to the court, and again al gre
length on the rehearipg. The attorn'
J general Of the United states, Richai