Arizona republican., 1913-02-05

ingtOn, in which he challenged the
 right of a governor to pass upon
 the measure. It was said to be the
 first time a governor had attempted
 to veto ratification, although it had
 been customary for governors to add
 their approval The state depart
 ment has included Arkansas in the
 list of state ratifying the amend
 ment
 i One of the most bitter contests
 over ratification took place in New
 York state Governor Hughes, now
 a member of the supreme court of
 the United States, sent message
 to the legislature in opposition to
 the measure. He eXprssed himself
 in favor of giving congress power to
 enact an income tax but declared
 the amendment submitted gave the
 federal government the power to
 strike a fatal blow at state credit
 and state independence by taxing the
 income from state and municipal
 bonds. Six prominent lawyers of
 New York led by Joseph H. Choate,
 former ambassador to England, sup
 ported the attack by a ringing me-
 
 as having been rushed through the
 senate and house almost without
 debate" and as giving congress pow
 CT to hinder, eff not prevent, the
 proper performance of the various
 functions of the states" by tax
 on state and municipal bonds. They
 pointed to the $20,000,000 New York
 state bonds and the S00,000,00O New York city bonds, as being within the power of congress to tax, Ii the amendment were adopted. Senator Root took an active part in favor of the amendment, which was finally approved in a resolution in the form of a bill but only after a similar bill was defeated in the first attempt to approve the amendment.
 Legislation must now be enacted bv congress before an income tax may be collected, the present amend ment merely giving congress the power to lay such a tax. Only the most general kind of estimates are being indulged in as to what the government may receive under such a. tax, as all will depend upon the rates to be fixed by congress. III 1S66 under the civl war income tax meas $72,OOO.O00 was collected The income tax of 1894 was est- mated to raise $3O,000,000 annually Inst preceding the passage Of the | amendment resolution by congress III 1909 Senator Bailey had introduced an income tax bill estimated to yield l nrobabIv $SO.OO0,OO0, proposed under the Payne-Aldrich tariff act. Sena- int estimated to yield $40,000,000. The corporation tax measure has yleloeo in the neighborhood of $30,000,000 a year.
 The amount of the tax will depend | largely upon the style of income tax l levied The 1894 law provided for a flat tax of two per cent on incomes over s4O0O. The Bailey bill author | ized a three per cent tax on incomes over $5OO0 The Cummins bill pro- vided graded tax, on incomes over s5OOO, the highest tax being SIX ner cent on incomes of over $10O,OO0 Massachusetts. Oklahoma. South Carolina and Virginia are states now possessing income tax systems of varying details.
 Agitation over income taxes has existed in the United States since the civil war The civil war measures were allowed to stand among the statutes without being stricken down by the courts, largely on the ground of being emergency measures. In 1870 a fierce debate occurred in con- gress over the continuation of the
 income tax measures inherited from