The Birmingham age-herald., 1911-05-21
INCOME TAX WILL
 LOWER TARIFF Will Furnish S100,000,0O0
 in Revenue
  HIGH COST OF LIVING Will Be Materially Decreased as Heavy Tax on Imports Will
 No Longer Be Necessary
By RoDERIcK CLIFFORD

T
 Washington, May 20.- Especially As soon as the income tax amendment to the constitution is ratified by three-fourths of state legislatures, a bill will be in- troduced in Congress to carry into ef- feet the amendment, and to practically revolutionize the whole system of na- tional taxation. It will greatly relieve imported commerce of the burden of pro- viding revenue with which to run the government.
 It Is now apparent that this constitu- tional amendment allowing Congress to levy an income tax will receive the in dorsement of more than enough states to make it a part of the organic law Already 20 states have ratified it, and only six are yet needed to adopt the
 measure.
 According to the bill which will be n- troduced, based upon the new amend ment, between s70OO0,OOO and S1OO,0OO, 900 will be realized from the revenue in- comes of American citizens. This added to the s50,O ,0O0, now being received from the corporation tax. will give the treas ury nearly $150,000,000 a year toward meeting the expenses of the government
 At present the import tax or tariff law, combined with the internal revenue tax, produces most of the money to meet the bilion-dollar budgets for which Congress makes appropriations. The in ternal revenue receipts will not be neces- sary to collect as much money from im- ports as has been levied in the past. One of the arguments in favor of the income tax has always been that it would reduce the cost of living by re- ducing the tariff It was expected to work out in this fashion when the su- preme court declared the McMillin | law unconstitutional 12 or 15 years ago | It Is pointed out, for instance, that the | high protective tariff was necessary not
 only to protect industries, but to meet | the expenses of government.
 1 With an income tax imports will not
 be compelled to produce all the revenues l needed for governmental administration | The big total of s150,0000 600 to come from
 the income and the corporation tax laws 1 will go a long way toward running the
 army, navy, treasury, postoffice, and the other departments. And when the in- | ternal revenue is added, the total cost of | operation, will be more than half met. Advocates of an income tax declare that the import tax can be cut in half. They say that with this done, the mill lions thus saved will go to the people of moderate means through cheaper food and cheaper clothing. It was just this argument that weighed- with the various states which have now recorded their votes in favor of the pending amend ment. No other argument, its friends now claim, could have prevailed with the state legislatures.
 The campaign for the adoption of the income tax amendment has extended over more than two years. It was neces- sary to have both houses of Congress
 AL. T before the states. This resolution was adopted only after prolonged fight. Finally, however. it was passed, and at once the secretary of state forwarded the draft to governors of the various states for consideration by their legisla- lures.
 At first the states were slow to act. They had in mind the action of the United States supreme court in declar ing an income tax unconstitution under the present organic law. and to many this seemed to be an argument in itself against such a tax. Then, too, there was strong prejudice against amending the constitution of the United States. To a great number of the people, the present fundamental law is sufficient for all purposes of government.
 Regardless of this, though, one state after another has set the seal of its approval on the amendment, Alabama, Arkansas, California, Colorado, Georgia, Idaho, Illinois, Iowa, Indiana, Kentucky Montana, Massachusetts, Maryland Maine Michigan, Mississippi. Missouri Nevada, North Carolina, North Dakota, Ohio. Oregon, Oklahoma. South Dakota South Carolina, Tennessee, Texas and Washington have ratified the amend ment.
 In all there are AS states to act. 29 of them have already approved of it. six more are necessary before the president can proclaim the new amendment and before Congress can pass an income tax law.
 A number of the states have the amendment before them now. Tn six cases the measure has been reported upon favorably by legislative committees. and in two cases one house has voted in favor of it. All this indicates that the amendment has a fair chance of rat ification before the long session of the Sixty-second Congress.
 If the measure should go through be- fore next December, Senator Brown of Nebraska, Is prepared to introduce his income tax bill. He will offer 1t at once. and 1t will become one of the big issues of the session. He is confident that he can. secure favorable action on his bill and that it will turn out to be revenue producer of great value to the govern ment, without proving burden on any tax payer.
 should the income tax bill now pro posed fail to pass in the next Congress, assuming that the amendment is ratified in the meantime. 1t will become one of the live issues of the next presidential campaign. This measure has support of both democrats and republicans in con gress, and 1t has enemies in both partles
 The fight for 1t will be made before the people if need be, its friends in Congress say. After winning the long drawn out contest for the amendments