The Barre daily times. (Barre, Vt.) 1897-1959, 1913-02-26
INCOME TAX FIGHT
FROM BEGINNING
Interesting History of Important Con-
test Which Vermont Had Only
Small Part in Recently.

viously approved, il is interesting Z
note what the amendment is and hoy
II was obtained. Incorporated as tn
sixteenth amendment" it reads as fol
lows:
article XVI.-The Congress shall hav
power to lay and collect taxes on in
comes, from whatever source derived
without apportionment among the states
and without regard to any census o
enumeration"
The change in the fundamental law
Of the land marks new epoch in thu
American tax system. For the frs
time Congress is given specific author
ity by a provision of the federal constt
tuition to levy an income tax All pre-
vious efforts for tax OF this klnt
have been without the explicit author
| ity of constitutional provision. The
change also marks broad development
of the economic and fiscal system OF
the United States, permitting incomes
to be a basis for taxation, similar to
the systems now in force in Great
Britain, Austria, Switzerland, Spain and
various other countries.
Probably the most important aspect
of an income tax, as now authorized
by the constitution, is that it adds a
new source of revenue for the govern
ment, At present the two great sources
of government revenue are customs du-
ties levied by tariff acts on goods inn
ported from foreign countries; and in
ternal revenue taxes on tobacco, spirits,
oleomargarine and certain other articles.
Each OF these sources at present pro-
duces little less than half OF the to-
tai revenues OF the government. In
l9ll the total government revenues Were
500 l00,006 and of this customs duties
yielded 1913, .260, while internal rev.
enue taxes yielded 1891 ,759,375. The re.
mainder came from sales of public lands,
the corporation tax AMI various miscel-
laneous sources
Under an income tax, however, new
and far-reaching source OF revenue is
provided for the government, and this
will in turn reduce the amounts re-
quired from the other sources of rev
enue, customs and internal revenue, in
order to meet the expenses of the gov
eminent. This last phase is likely to
have an important bearing on tariff
legislation as hereafter enacted
The first official step toward amend
ing the constitution so as to authorize
specifically an income tax was taken by
the Senate on July 7, 1909. BY unani
nous vote, that body adopted a reso!u
legislatures OF the respective states.
Only few days later, on July IL, the
House passed the resolution by vote
Of 3l7 to a.
The movement took form during the
tariff debate in 1909. Amendments to
the Payne. Aldrich tariff bill, incorporat-
ing an income tax and Inheritance tax
were then pressed. Finally,
President Taft sent message to Con-
gress, urging the passage of tax upon
the doing of business by corporations,
by their income" and the sub
mission to the states of an income tax
amendment TO the constitution.
Senator Brown OF Nebraska fathered
the amendment finally adopted. As in
PRODUCED and sent to the finance COM
ay direct" taxes on incomes without |
lpportionment. When the amendment
vas reported out of committee by Sen
ltor Aldrich, the word direct had been
eliminated. The words from whatever |
ource derived were incorporated, These |
words caused sharp criticism before sew |
raj state legislatures.
In the House the amendment was re-
erred to the ways and means commit
ee. One afternoon was given to de- |
,ate. Representative Payne, Republi-
an floor leader, spoke in favor of giving
he government the power as war
Measure, but denounced il as peace
Measure, by saying that he believed
with Gladstone, that it tends to make
nation of liars" Representative
'hamp Clark championed the amend
lent as making accumulated wealth paw
Is just burden of taxation. 1t was
ventually agreed to by the House by
very large majority in which both par
les were represented.
Alabama Ratified 1t First.
The states were slow in ratifying the
mendment. Alabama had the honor OF
eing the first and only state to approve
he change during 1909. Within less
nan a month from the date of action
y Congress, the Alabama legislature
au 'oleu unanimously III idNoI VI lHt
mendment.
In 1910, Georgia, Illinois, Kentucky,
Iaryland, Mississippi, Oklahoma, South
arolina and Texas voted to ratify the (
mendment. In 1911, Arkansas, Califor-
Ia, Colorado, Idaho, Indiana, Iowa, Kan I
Is, Maine, Michigan, Missouri, Montana,
ebraska, Nevada, New York, North s
arolina North Dakota, Ohio. Oregon, y
South Dakota, Washington i
i'd Wisconsin gave their approval. In c
~, Arizona, Louisiana and Minnesota )
tied for ratification. Thus thrty-fo Y
ates bad acted aiiirmatively on the !
'oposal. Connecticut, New Hampshire, I
hode Island and Utah by this time had r
jected the amendment. {
A notable incident occurred in Arkan-
S during the consideration of the V
nendment. Both houses of the legis- 7
ture passed resolution of approval, 5
IT Governor Donaghey vetoed" it. This I
eto' at once raised a nice constitu- e
'nal question. Rep. Robinson, of Ar p
Insas, made speech in the House 4
Washington, in which he challenged e
e right OF a governor to pass upon ri
e measure. II was said TO be the first a
ne governor had attempted TO veto =
although il had been Gus.
mary for governors TO add their APP
oval. The state department has in
ided Arkansas in the list of states
ffx-ipor h.