The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-12-06
INCOME TAX LAW
| GOOD IN WISCONSIN
GOVERNOR M'GovERN TELLS HIS
COLLEAGUES HOW WELL
TT WORKS.
FEDERAL TAX OPPOSED
DISCUSSION OF INLAND WATER
WAY PROBLEMS LEADS TO
CHARGES oF GOVERN
MENT NEGLECT.
FEDERAL TAX OPPOSED

The conference of governors heard
discussions Of two OF their problems
at the morning session yesterday--the
State income tax and the development
of inland waterways, though the gen
eral discussion provoked by the able
paper on the latter by Governor foHs,
OF Massachusetts. drifted into de-
bate between Eastern and Western
governors over the governments al
legged neglect of duty in conducting
the gigantic irrigation schemes in the
West, and not neglecting it's duty IN
the Mississippi valley, and the mat
ter of inland waterways was barely
touched upon. The income tax mat
ter Jared worse after Governor Nc
Govern, OF Wisconsin. had read
paper on the subject and Ex-Goveinor
Wilson, OF Kentucky, had discussed
the federal income tax proposition.
None OF the governors had anything
, to say on the subject. save Governor
Donaghey, OF Arkansas who an
nounced that he had vetoed the federal
proposition when his legislature passed.
it.
Income Tax Law.
Governor McGovern gave an interest,"
ing resume Of the operation OF the
income tax law In Wisconsin, claiming
that 1t had weathered the storm, and
was now a fixed and certain source
of revenue in his State. AZ one time
: DOR another he said, twenty States
have tried the income tax law, and ali
, had failed: In Wisconsin it has been
, an unqualified success. In the face Of
! bitter opposition and the difficulties
to administration OF n new law, the
State has raised over $500 900 the
first year.
Uniformity in the taxation of in
I comes may be desirable. but IL pos
sible 1t should be brought about not
, by national legislation, but ~ con-
certed action among the several
| States. Here is an opportunity TO
test the practical utility of uniform
: ty secured by cooperation among the
r States. II feasible this course is Ger
tainly most desirable. 1t will pro-
y vide additional revenue where Il rt@
, needed and tend to equaliZe taxa
, ton where the greatest Irregularities
> now exist. 1t VIII tend to enhance
the dignity Of the states as contrasted
- with national authority. 1t will mark
4 the beginning IF Il. wise policy which
. will have for its object greater uni
, fornity in the legislation and public
I policy Of the several States secured
by mutual agreement among them
Ex-Governor Wilson Opposed.
. Wilson. OF kentucky, who also
! spoke on the subject OF State In
come Tax" stated that Governor Mo-
Govern had so thoroughly covered
Z the ground, he would treat the bear
, ing of the proposed federal income
tax the State income tax Gov
4 ernor Wilson took strong position
against the federal tax, stating that
the funds to be derived from such
tax were not needed by the ma
a ttonai government. Congress was
= spending money fast enough now, and
y If it had more IL would DO more ex-
: travagant.
The income tax to the popular
mind Is a question OF simply taxing
q incomes and shifting part of the tax
burden of those not subject to in
| come tax to the smaller number who
: would be, but, he said. such hopes
ARE never realized--neW taxes do moi
wipe out old taxes. but simply add
81 new burdens. and the proposed fed
a eral income tax must be necessarily
charged by the landlords to the ten
ants; by the lenders to the borrowers
Z and by them added to the expense
: which all the people must pay for al
. that they buy He further regarded
z the federal income tax as a dan
Z eerous precedent for the States TO es-
3 tabItsh: "Onco give the power to the
! nation to tax all the incomes. you
confer power 10 tax States out OF
! their vitality If not out OF existence
, ! The present amendment involves q
o grant TO impose on the people o.
the States a federal income tax I'M
restricted by the present requirement
Of apportionment What other safe
q guards have we against possible fed
. eral encr"ac hment OF the sovereignty
a Of the States than that which re-
quires that direct taxes shall be ap-
portioned among the people. and
what will remain OF these safeguards
If We adopt this amendment ?"
h Governor Wilson further stated
| that he favored abolishing the pres-
ent general property tax as unfair
n and unequal, and the personal prop
: erty tax as startling In i.s inetf-
cheney and inequality and rendered
O indeed necessary concealment of Sc
curities from taxation. which, II
literally enforced. would practically
r confiscate all incomes OF every safe
n investment"
Our Inland Waterways
Gov. Foss, of Massac husetts, followed
the income tax addresses with valus-
= Bile and comprehensive paper on The
Development of Inland Waterways
Governor Deneen, OF Illinois. who was
TO speak on the same subject. was
not present. and his paper was or
dered published in the minutes. Gov
ernor Foss. who is one OF the fathers
. Of the Atlantic to the gulf waterway
= ! system, gave an interesting history of
" the movement from Its inception. And
!. the forces contributing to It's success
y outlining what it's completion means
to the States along the Atlantic Sea
board
Governor Foss compared our pro-
gress in the matter Of inland water
ways with Canada's development
showing that this country is a hun
bred years behind the times Last
year Canada hauled $4,000. 900 tons Of
- lowgrade freight by water 1t was
rnanifestly the province of the water
routes to transport heavy freight IN
. which speed is not essential but econ
| ony is. He contended that there Was
no reason for opposition by the rail-
roads to the development of inland
to the public as common carriers. As
q Il Is the railroads are congested and
t, with all their rapid development San
d not handle the cuuntry's freight with
Z the necessary dispatch and the need
Of more and better water rates was
manifest. There viii be no relief 10
this congestion until the country moves
practically all it's raw material by wa
tcT.
Governor Tener, of PENNSYLVANIA.
; who opened the discussion, declared