New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-21
THINGS HE FORGOT.


ratify the income tax amendment 10 the
federal Constitution Governor DIX con-
veniently forgot what Democratic Con-
eress did in 1894 In trying TO meet the
criticism that the faulty wording OF the
pending amendment would permit Con-
gress to tax income derived from state
county and municipal bonds he set up
the plea that il Is illogical and absurd
to suspect Congress. even II 1t mad the
power, of being capable Of exercising IL
so stupidly and discourteously. The
Governor said with the fine scorn OF the
priOri logician:
The Senate represents the states tne
House Of Representatives represents the
states and the cities. Yet we are asked
TO believe that Congress may impose an
income tax that will cripple the states
and municipalities by destroying the
value Of their instrumentanues. Couiu
any proposition be more illogical or an
surd? In selfgoverning countries the
rover 10 tax is exercised in accordance
with the dictates Of common sense ana
Justice.
Yet in the only federal income tax law
passed since Mr.. Dix became voter
Democratic Congress did exactly what
he saws no Congress would think Of doing.
If imposed a tax on income derived as
interest on state. county and municipal
bonds. in spite Of the earnest efforts or
one Of Mr.. Dix's distinguished Demo
cratic predecessors in the goyernorshlp
David B. Hill. TO secure an exemption
in favor Of such securities.
On another point the Governor also
completely forgot the Democratic party s
record while spinning ont his argument.
He drew a fanciful analogy between
the relations Of state TO the nation and
those Of a county to n state, and said
that there was no more reason for a
state 10 fear an oppressive use OF the
taxing power by the nation than there
was for a county TO fear similar abuse
az the hands of state government His
words were:
What the states are TO the Union coun-
ties are to q state. The sovereign state
IF New York has unQuestioned power 10
lew taxes. Does this mean that there
!
lature composed of representatives from
the counties within state will exercise
the taxing power so as 10 destroy tne
counties? Let us cease conjuring fanci-
full and impossible dangers.
Now, il has long been one Of the loud
est complaints of the Democratic party
in this state that the taxing power has
been used here if not to destroy GER
t0inly to Cypress the counties containing
large cities. Democratic platforms have
| been filled for a generation with de-
mands for "home rule" in matters OF
taxation. The Democratic party here
protested time and again against a sys-
TEN of excise taxes on the sale of liquor
| by which half the license fees collected
/ i'm the counties of New York. Kings,
/ Queens and Richmond go TO the state
treasury. That forced division of a
[ rich source of revenue is considered an
oppressive use of the states taxing
power. and were the right of the coun-
ties 10 apply liquor excise revenue ex-
cusively to their own purposes protected
/ by the state constitution and were an
amendment to be submitted withdrawing
such protection from the counties the
Democratic party would certainly de-
nOunce the amendment as an insidious
attack upon home rule. Yet the situa-
tion as regards the income tax is exactly
parallel States, counties and munic-
qualities are now protected by the fed
eral Constitution in their right 10 issue
securities, interest on which cannot be
taxed as income by the federal govern
ment. Governor Dix in arguing that
that safeguard ought to be demolished
therefore abandons a contention for
which the Democratic party in this state
has fought, bled and almost died 10.
these many years