The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1913-02-06
INCOME TAX.LAW
IS MADE POSSIBLE
'Thirty-Eight States Ratify the
Sixteenth Amendment.
CAN GO INTO CONSTITUTION
Congress Leaders Predict Measure
viii Be Presented as Soon a. the
Extra Session 10
Called.
CAN GO INTO CONSTITUTION

Washington, Feb 4.--Direct taxes
upon the incomes Of citizens of the
United States, whether derived from
idle capital or from the conduct OF
business, were made possible by the
ratification of the sixteenth amend
ment to the federal Constitution.
Delaware, Wyoming and New Next
ment through their respective legisla-
lures, completed list of 3S states
that have approved it, two more than
the three-fourths necessary for its final
adoption.
Leaders in congress predicted that
through this authorization the law
which will be passed to levy the tax
upon American incomes will be intro
duced as soon as the extra session
opens.
It's exact terms have not been de-
cided upon, but 1t is believed 1t will ex-
empt all incomes below $4,000 or $5,-
900, and will provide tax of one per
cent. upon the majority of personal
'HeohCo thdt wv NV VII W al cASco-
sive figure.
Brown Gives Notice.
Informal notice of the final adoption
of the new amendment was given to
the senate by Senator Brown of Ne
braska, who introduced the discussion
in 1909 upon which the proposal for an
income tax was submitted to the
states. The drafting of the bill to put
the tax into effect, it is expected, will
fall to the lot of Representative Cor
dell Hull Of Tennessee, member of
the house ways and means committee,
who drew the excise tax bill proposed
last year by the Democratic house of
representatives, but which did not be.
come law.
Will SuppIant Corporation Tax.
The income tax will be designed to
supplant the present corporation tax
and will apply to the incomes of indi-
viduals. firms and corporations.
Representative Hull asserted he ia
vored making the new tax an integral
part OF the financial system of the
United States, to remain in full force
without regard to the character of tar
iff bills that congress may enact from
time to time.
Ore feature which It is believed will
be included in the law will be provi-
sion for collecting at the source" of
the income. This feature, now in OPP
Grafton in England, would require
firms to certify amounts they pay in.
dividuals in salaries and fees and pay
the tax direct to the government. 1t
is believed this would remove much
complaint that might be made if the
government had to investigate every
individual citizens income and would
prevent evasion of the law.
Estimate $100,00o,00o Taxes.
The annual amount that the govern
ment may realize under the income
tax is estimated by Democratic lead
ers in congress at approximately $780,
100000 This would include the $780,
100000 collected under the present
corporation tax.
The 3S states that ratified the
are Alabama, Arkansas,
Arizona. California, Colorado, Della.
ware, Georgia, Idaho. Illinois. Indiana,
Iowa. Louisiana, Kansas, Kentucky,
Maine, Maryland. Michigan, Mime.
sofa, Mississippi, Missouri, Montana,
Nebraska, Nevada, New Mexico New
York. North Carolina, North Dakota,
Ohio, Oklahoma, Oregon, South Caro-
lima, South Dakota, Tennessee, Texas,
Washington, West Virginia, Wisconsin
and Wyoming.
Four states rejected 1t: Connect
cut. New Hampshire, Rhode Island and
Utah.
Six states have not acted on It
Florida, Massachusetts, New Jersey,
Pennsylvania, Vermont, Virginia.