The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-02-08


idle capital OF from the conduct OF
business. were made possible today by
ratification OF the 18th amendment
20 the federal constitution. Delaware
wyoming and New Mexico indorsed
the income tax amendment through
their respective legislatures. complet-
ing list OF 3s States that have ap-
proved IL. two more than the three
-fourths necessary for its final adop-
,tion.
Following Is the list OF States which
ratified the income tax amendment:
Alabama, Arkansas. Arizona, Califor-
MIA. Colorado, Georgia, Idaho. Illinois.
Indiana. Iowa. Kansas. Kentucky,
Maine, Maryland. Michigan. Mime
sofa Mississippi. Missouri. Montana,
Nebraska. Nevada, New Mexico, New
York. North Carolina, North Dakota.
Oklahoma, Oregon. South Carolina.
South Dakota. Tennessee. Texas,
Washington. Wisconsin. louisiana,
chic. West Virginia, Wyoming.
The following rejected 1t: Connecti-
cut. New Hampshire. Rhode Island,
Utah.
No action, or only partial action,
was taken in the eight other States.
Leaders in congress predicted to-
night that through this authorization
the law which will be passed to levy
the tax upon American incomes will
be introduced as soon as the extra
session opens. Its exact terms have
not been decided upon, but IT is be-
lieved II will exempt all incomes be-
low $4,000 OF 5000 and viii. provide
IA tax OF yer cent upon the majority
OF personal incomes that do not run
TO an excessive figure.
Informal notice of the final adop-
ton OF the new amendment was given
TO the senate by Senator Brown OF
Nebraska, who introduced the resolu-
tion In 1909 upon which the proposal
for an income tax was submitted to
the States. Drafting OF the bill to
put the tax In effect. II is expected.
will fall TO the lot OF Representative
Hull OF Tennessee. a member OF the
house ways and means committee,
who drew the excise tax bill proposed
last year by the Democratic house,
but which did not become law.
The income tax will be designed to
supplant the present corporation tax
and will apply to the incomes OF in
dividuals. firms and corporations. In
a statement tonight. Representative
Hull declared he favored making the
new tax an integral part of the finan-
cia 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 IL Is believed
Will De included in the law. will be
prDviIion for collecting at the source"
OF the income. This feature, now In
operation in England, would require
firms to certify To amounts they pay
to individuals in salaries or fees or
pay the tax direct to the government
IL Is believed this would remove much
complaint that might be made il the
government had To- investigate every
citizens income and would prevent
evasion OF law
The annual amount that the gov
ernment may realize under the in
come tax is estimated by Democratic
leaders In congress at approximately
500. 200. 900.
This would include the $40, 900. 900
collected under the present corpora
tion tax.
"One OF the important results Of
an income tax" said Representative
Hull. will be the curbing c: vnneces-
sary federal expenditures When a
great part OF the governments in
come Is derived by direct tax upon
the citizens OF the nation they will
scrutinize more carefully the appro-
priatlons made by congress"
Probably II will remain for Presi-
dent-elcct Wilson Co make official an
nouncement OF the income tax amend
mcnt To- the constitution.
To date the state department has
received notices OF approval by the
legislatures of only 50 states West
Virginia, Delaware. Wyoming an!
New Mexico not having reported on
their action. The department can not
act upon anything less than the Of
hcial certificate OF tho governors and
secretaries of state
Even when aG Of the certificates
are az hand, thc executive will not
bc In a position formally To- announce
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