The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-04

Washington, February 3.-Dffecf
taxes upon the incomes OF citizens Of
the United. States, whether. derived
from idle capital or from the conduct
of business, were made possible to-
day by the ratification of the sixteenth
amendment TO the Federal Constifu-
ton. Delaware. Wyoming and New
Mexico. fndorsing the income tax
amendment through their respective
Legislatures, completed list of thirty
eight states that have approved II,
two more than the three-fourths me-
cessary for its final adoption.
Leaders In Congress predicted to-
night that through this authorization
the law which Will be passed to levy
the tax upon American incomes viii
be introduced as soon as the extra ses-
sion opens Its exact terms have not
been decided upon, but it is believed
it will exempt all incomes below $4,-
600 or $4,000; and will provide a tax
of 1 per cent upon the majority OF per-
sonal incomes that do not run to an
excessive figure.
Informal notice OF the final adoption
of the new amendment was given to
the Senate by Senator Brown. of Ne
braska, who introduced the resolution
in 1909 upon which the proposal for
an income tax was submitted to the
States
Drafting of the bill to put the tax
in effect, II IL expected, will fail to
the lot OF Representative Hull. of
Tennessee. a member OF the House
Ways and Means Committee. who drew
the excise tax bill proposed last year
by the Democratic House of Represen-
r.,xf f~f, III h<c In
The income tax will be designed to
supplant the present corporation tax
and will apply to the incomes of in
dividuals, firms and corporations In
a statement tonight Representative
Hull declared he favored making the
new tax an integral part of the finan-
cial system of the United States to
remain in full force without regard to
the character of tariff bills that Con-
gress may enact from time to time.
VIII Collect ut Source.
One feature. which it Is believed will
be included In the law, will be pro-
vision for collecting at the source"
of the income. This feature. now in
operation in England, would require
firms to certify to amounts they pay
to individuals in salaries or fees or
pay the tax direct to the government
II is believed this would remove much
complaint that might be made If the
government had to investigate every
citizens income and would prevent
evasion of the law.
The annual amount that the govern
ment may realize under the income
tax is estimated by Democratic lead
ers in Congress at approximately $780,
600. ocO. This would include the $780,
600, 600 collected under the present cor
poration tax
"One OF the important results OF an
income tax" said Representative Huh.
will be the curbing of unnecessary
Federal expenditures When great
part OF the governments income Is de-
rived by a direct tax upon the citizens
of the nation. they will scrutinize more
carefully the appropriations made by
Congress-
Wilson May Announce IL.
Probably it will remain for Presf-
dent-Elect Woodrow wilson 10 MAKE
official announcement or the income
tax amendment to the Constitution
I'D TO date the State Department has
received notices of approval by the
Legislatures OF only thirty-four states.
West Virginia. Delaware. Wyoming
and New Mexico not having reported
on their action. The department can
not act upon anything less than the
official certificates of the Governors
and secretaries Of state
Even when all of the certificates are
at hand, the executive will not De IN
n position formally to announc that
fact In matter OF this Importance.
IL is necessary to move with extreme
caution. and Secretary Knox. the Gus
todian OF the certificates. VIII refer
them TO the solicitor of the Depart
ment Of state for examination as TO
their sufficiency.
Already some questions have been
raised as to the legality Of the re-
turns one was in the case OF Ken
,,~Lv whore the LEGISLATURE initial
n adopted the amendment in advance
OF the receipt from Secretary Knox of
the formal communication which
should serve as a basis for a states
action. In consequence Of this haste.
and the use OF a newspaper clipping.
the language Of the enactins resoiu-
zion was slightly erroneous
Attempt Go Correct Error.
As soon as the error was discovered
an attempt was made to correct u By
a rc-enactmcnt Of the resolution IN
oropcr form. which action however.
has raised an issue that must be pass
ed upon BY the solicitor u - recalled
that Secretary OF state seward. IN
Isss. practically referred 70 Congress
the question as 20 whether the four
teenth amendment had been properly
ratified by the states. because Of some
such irrcxuiarity.
n Is probable that Secretary Knox
viii not announce the ratiiicatioa- up-
on the basis % the present returns. bat
will await the receipt q ccrsincetes
from some % the states which have
not vet acted upon the. amendment,
but are reasonably certain % DO -
favorabiv IN this cas-. and allowing
for the time required for = p1tnstak~
trr exa~nfnatson D. tre solicitor. q
probably viii te after March hz-
fore the Presidents notice can $50