The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1913-02-04
WYOMING DECIDES
FOR RATIFICATION
ACTION RESULTS IN AMENDMENT
AUTHORIZING CONGRESS TO
LEVY INCOME TAX.
FAVOR ONE Per CENT RATE
New Mexico And New Jersey in Close
Race With State Which
Decided.

The federal constitution has been
amended so as to authorize the con-
gress to levy an income tax. This
was accomplished yesterday by the
Wyoming legislature unanimously rat
flying the amendment making thirtN-
six states in favor of the proposition,
thus making the sixteenth amendment
an integral part of the constitution.
While New Mexico and New Jersey
were talking about winning the hon
or of casting the deciding vote, wy
oming acted. This will probably
mean a federal tax Of 1 per cent per
annum on the excess over 5000 of all
incomes corporate and personal.
Believing that Delaware would
make the thirty-sixth state to ratify
Joint resolution at noon. 1T was
shown some time ago that the PROPOSE
ton needed the affirmative votes of
West Virginia acted last week, max
ing the number of affirmative states
thirty-five, with only four rejecting
ticut, Rhode Island, Utah and New
Hampshire, but the last state propos-
ed to reconsider it's action.
Wyoming acted while New Jersey
and New Mexico talked Immediately
upon the implying of the Legisla-
ture at Cheyenne yesterday, the rules
joint resolution was adopted, Gov.
Carey signed it, andS messenger was
dispatched to the Secretary of State
at washington with the official certi-
ficafion of the States action
On the presentation of this docu-
meht to Secretary Knox the amend
ment will become effective. It's Ian
guage is:
Article xvI-The Congress shall
have power to lay and collect
sae on ae dne9e t rpom
ment among the States, and with
out regard to any census or enum-
eration.''
This amendment originated on July
z, 1909. when the United States SEN
ate unanimously adopted the resolu-
ton submitting the proposed addition
ratification. The House concurred on
July IL by a vote Of BIT to IA. The
Secretary of state formally submitted
the amendment to the States on July
The corporation tax now yields $50,
000, GOO q year.
pected to yield $50. 0OO, 900. but there
are not sufficient, data on which. to
estimate.
Under a new law it is expected to
make the tax on incomes Of corpora
tions reach concerns now untouched,
yielding $4,000, 600 more revenue.
This would bring the total up to
The adoption yesterday of the
amendment to the federal constitution
giving Congress power to levy taxes
Democratic Congress will impose such
a tax.
is to lay such a federal tax on all net
incomes of persons and corporations
in excess of $1,000 year.
The tax rate most generally favor
ed is 1 per cent. per annuIn the ex-
cess of income over So 600 Some
members want the levy to reach all
incomes in excess of $4,000.
DIRECT TAX NOW POSSIBLE.
Washington, Feb. 4.-Direct taxes
upon the incomes Of citizens of the
idle capital or from the conduct of
business are made possible by the
ratification of the sixteenth amend
ment to the federal constitution. Della |
ware, Wyoming. and New Mexico, en-
dorsing the income tax amendment
through their respective legislatures, |
approved it, two more than the three |
fourths necessary for its final adop-
ton.
Leaders in congress predict that |
through this authorization the law
which will be passed to levy the tax |
upon American incomes will be intro |
opens Exact terms have not been |
decided upon, but it is believed it will |
exempt all incomes below $4,000 or |
$4,000; and will provide a tax of one
per cent. upon the majority of per-
sonal incomes that do not run to an /
INFORMED notice of the final adop- |
ton of the new amendment was given |
to the Senate by Senator Brown of |
Nebraska, who introduced the resolu-
ton 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 Representa- |
Cordell Hull of Tenn essee a member
of the House ways and means COM
mittee. who drew the excise tax in the |
bill proposedt last year by the Demo-
cratic House of representatives but |
which did not become law. The in
come tax will be designed to sup
plant the present corporation tax and /
will apply to the incomes of individ-
uals, firms and corporations. In a /
statement, just made, Representative
Hull declared he favored making the
new tax an integral part of the hnan- +
cia1 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.
One feature, which 1t is believed will
include in the law will be provision for
collecting at the source of the in
come. This feature, now in operation
in England, would require firms to
certify to amounts they pay to indi-
viduaIs in salaries or 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.