New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-27
Democrats Indicate That They
Will Insist Congress Can
Antedate the Levy.
TAKE ISSUE WITH Mr.. ROOT
Borahs Effort to Modify the
Proposed Surtax Defeated
with the Votes Of Sew
eral Republicans.
Iron The Tribune Bureau. IL

Washington. Aug. 26.-The tariff bill
entered troubled waters again to-day
when the tariff section was disposed OF
and fhe Senate began consideration Of the
income tax section. The tariff section was
completed with the exception OF numerous
controverted paragraphs. which VIII De
passed on later. II is the hope OF the
Democratic leaders that the income tax
section will he completed by to-morro"
night. although from the very outset II en-
ccuntered many objections and provoked
much debate.
Fortified by opinions from the Attorney
General, Representative Hull and senator
Shields. the Democrats indicated to-day
that they would reject the contention OF
Senator Root that Congress was without
authority to levy the tax on incomes
which have accrued prior TO the passage
OF the law
In the opinion prepared by 7. NJ. COR
don. assistant 10 the Attorney General
and approved by the Attorney General II
is held that Senator Roots objection IS
not we'll founded.
MIR. Root cannot have in mind" the
opinion states, that a tax, to be an IN
come tax, must actually be collected. or
,ven assessed before income ceases TO De
income. such requirement would DC
wholly impossible TO comply with. For
example. such n requirement would render
il improper to assess the tax upon income
for the preceding year. as is done by this
law. and as Is the universal custom OF
income tax laws both in this country ana
in England
Mr.. Root does assume. however that a
tax cannot be a tax upon incomes unless
the law levying the tax Is I'm active oper-
alton at the precise instant that the in
come accrucs. The law IS conceived as i
sort OF invisible net interposed between
the individual and his source of income
The federal per cent is caught. branded
ard turned loose again, as IT were, to bf
counted and collected at later date by
the assessor"
Representative Hull. who drafted the
income tax section. argues that the tax
is merely measured by the amount OF IN
come and collected out Of the general
property Of the taxpayer. 1T follows.
during any period OF the present year
can impose and collect tax on all In
comes accruing subsequently 10 the pro-
mitigation OF the recent constitutional
amendment, and il is strongly probable
that the constitutional amendment had
the effect TO empower Congress 10 meas
ure the tax by all income sccruing from
January last
1.-THE power to impose the tax has
existed during the entire year, and there
has been no impedimcnt 10 it's imposi-
ton under the rule of uniformity during
most Of the year and under the weight
Of authority in the states. together with
the construction placed upon the national
Constitution By the Supreme Court in the
legal tender and other cases. no reason
appears why the tax now proposed could
not and should not be measured by the
income accruing from the first OF the
year"
At the outset Of the consideration ~
the schedule Senator Borah offered an
amendment modifying the rates Of the
surtax by levying an additional per
cent upon incomes from $4,000 10 $1,000.
. per cent on incomes from $4,000 ia
$50 CO. per cent from $4,000 10 5000 4
per cent from $4,000 10 10000 and per
cent above $4,000 The amendment was
rejected by vote OF II TO Il. the Demo
Gratis standing firmly for the bill as sup
ported by the caucus. aided by several
regular Republicans.