Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-04

WHICH Will Initiate tnlS VI IdlSiiiS
revenue. In the Senate the bill will be
considered by the committee on finance.
1T is expected that the income tax
will realize 100000. GOO a year in reve-
nues.'' said Mr.. Hull, this sum to in
clude the S2S.OOO.O0O now provided by
the corporation tax, which will be alb
sorbed by the proposed ,ew law
Means of Avoiding Deficit.
a very important feature of the new
method of taxation is pointed out by Mr..
Hull-that is to say. its availability as
flexible means of avoiding deficits and
aiding the Treasury. He calls attention
to the fact that with Congress in session,
or in cases Of threatened severe emer-
gencies. the law-making body can in
short order increase the amount OF tax
alton TO meet deficit or reduce it to re-
lieve a plethora of money in the Treas
ury and thereby tighten the burden of
the taxpayers.
To democratic Congress and a demo-
cratic administration will fall the task
of effecting this radical change in the
national system of raising revenue Eff
forts extending over a period Of fifty
years are now eliminating in success a
the hands OF the political party which
has been the consistent advocate of the
system. To be sure, the initiative in the
final step was taken by republican Con-
gress. but not with the idea that il would
result as il has. and then only after prod
ding by the prOgressives of both parties.
Once before under President Cleveland
a democratic administration put an in
come tax on the statute books. but the
Supreme Court by vote Of to can
celed it on constitutional objections.
Those objections have now been removed
by the people themselves in change
of the Constitution. effected in the man
ner provided by their forefathers. They
did not recall the Supreme Court as
them. but recast the lines along which
the court should move in orderly manner
Authority of Congress.
As pointed out in The Star several
weeks ago, when the new constitutional
was lacking the assent of but
two states. the authority given to Con-
gress to tax the people on their Incomes
is practically unlimited. 1t is difficult
to see how the assured new legislation
can by any means be hailed before the
court OF last resort for test
The new article OF the Constitution
article NEF-reads as follows: The Con-
gress shall have power to lay and col
lect taxes on incomes from whatever
source derived without apportionment
among the several states and without re-
gard to any census or enumeration.
The authority is thus seen to be of
the simplest and plainest character, and
most far reaching. II remains only
for Congress to fix the rates and pro-
vide the means for insuring the col
lection. one method in connection
with the latter feature is suggested
the British plan of collecting at the
source. by requiring firms to certify
the salaries or fees paid their employees
nd mo a to he
treasury. This would surely catch the
salaried man who receives over $4,000.
Net for the Dodgers"
But Congress will throw every safe
guard possible around the collection Of
great incomes and TO prevent "dodg-
ing" Stringent regulations for punish
ment Of false representation or with
holding Of sources Of income will be
made 1t is safe to say that at the
bottom Of each statesman's heart Is the
desire to get after" some OF the great
incomes. the staggering amounts OF
which have been revealed by recent in
quiries and court records.
The great estates, such as the Astor
and Vanderbilt the "unearned' incomes
OF Carnegie, Rockefeller and others, will
be thrown under the law by carefully
phrased provisions. and after few years
OF practical operation the rates of taxa
ton may be changed to let the man of
small means off easier
Whi.e the sum of 5000 lis tentatively
discussed as the minimum income to be
taxed ii may be fixed at less. Mr.. Hull
at one time favored $3.50 as the figure.
claiming that II would affect 10000 per-
sons in this country.
Wilson to Proclaim the Law.
President Wilson will undoubtedly be
the official to proclaim the new amend