The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-05-21
Constitutional Amendment,
Incorporating Scheme, to
Be Offered in Congress
When 81 States Approve.
ENORMOUS RETURNS
EXPECTED ANNUALLY
With $5O,OOO,OOO from Cor
poration Tax, Nearly $780,
100000 Would Be Raised
Yearly, Advocates Say.
(American News service)

(American News Service)
Washington, May 2O.-As soon as
the income tax amendment to the
constitution is ratified by three
fourths of state legislatures, bill;
will be introduced in congress to car
ry into effect the amendment, and to
practically revolutionize the whole
system of national taxation. 1t will
greatly relieve imported commerce of
the burden of providing revenue with
which to run the government.
1t is now apparent that this consti-
|tutional amendment allowing congress
to levy an income tax will receive the
Endorsement of mere than enough
states to make it part of the orgnic
law. Already twenty-nine states have
ratified 1t, and only six are yet need
ed to adopt the measure.
According to the bill which will be
introduced, based upon the new
amendment, between $7O,0OO,OOO and
500. 100000 will be realized from the
revenue incomes Of American citizens.
This added to the $50, O,O0O, 900 now be-
ing received from the corporation tax,
will give the Treasury nearly $780,
100000 a year toward meeting the
expenses of government.
At present the import tax or tariff
law, combined with the internal rev.
enue tax, produces most of the money
to meet the billion dollar budget for
which congress makes appropriations.
The internal revenue receipts will
still be depended upon after the in
Fcdme tax becomes available. but 1t
will not be necessary to collect as
much money from imports as has been
levied in the past.
To Reduce living Cost.
One of the arguments in favor OF
the income tax has always been that
1t would reduce the cost of living by
reducing the tariff. 1t was expected
to work in this fashion when the SUI
preme court declared the McMillin
law unconstitutional twelve or fifteen
years ago. 1t is pointed out, for in
stance. that the high protective tariff
was necessary not only to protect in
dustries, but to meet the expenses OF
government.
With an income tax imports will not
be compelled to produce all the rev.
enues needed for governmental admin.
istration. The big total of $3.50. .O0O, 900
to come. from the income and corpor-
alton tax laws will 60 a long way
toward running the army, navy, treas
ury, postoffice, and the other depart.
tc $kA {nf
enue is added, the total cost of opera,
ton, 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 mi..
lions thus saved will go to the peo.
pie of moderate means through cheap.
er food and cheaper clothing. 1t was
just this argument that weighed with
the various states which have now
recorded their votes in favor of the
pending amendment. No other argu
ment, its friends now claim, could
have prevailed with the state legisla'
lures
Campaign on 2 Years.
The campaign for the adoption OF
the income tax amendment has ex'
tended over more than two years. II
was first necessary to have both hous.
es of congress pass resolution laying
the amendment before the states
This resolution was adopted only af
ter a prolonged fight. Finally, howev
er 1t was passed, and at once the Sc
cretary of State forwarded the draft
to the governors of the various states
for consideration by their legislatures
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 unconstitutional un
der 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 oi
the United States. To great mum
Der of people. the present fundamen
tai law is sufficient for all purposes
Of government
Many States Approve
Regardless of this. though, one state
after anoth has set the sea- of its
approval on the amendment, Alabama
Arkansas. California, Colorado. Geor
gia, Idaho, Illinois. Iowa, Indiana. Ken
tucky, Montana, Massachusetts. Mary
land, Maine, North Dakota, Ohio, Or
egon, Oklahoma, South Dakota. South
Carolina. Tennessee. Texas and Wash
ington have ratified the amendment
In all there are forty-six states tc
act. Twenty-nine of them have al
ready approved Of ii. six more are ne
cessary before the President can pro
lConttnued On Page EightA