The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1913-02-07
INCOME TAXADOPTED
DELAWARE, WYOMING AND NEW
MEXICO MAKE MORE
THAN MAJORITY.
HUNDRED MILLION REVENUE
incomes Under $4,000 or $4,000 May
Be Exempted - Believed
New Law Will Raise
That Amount.

washington, FeD. 4.-Dlrect taxes
upon the incomes of citizens OF the
United States, whether received from
idle capital or from the conduct Of
business, were made possible by the
ratification of the sixteenth amend
ment to the federal constitution.
Three States Indorse 1t.
Delaware, Wyoming and New Mexi-
CO, indorsing the income tax amend
ment thru their respective legislatures
completed a list of SO states that have
approved it, two more than the three.
fourths necessary for it's final adop-
ton.
Leaders in congress predict that
through this authorization the law to
be passed to levy the tax upon Ameri-
can incomes will be introduced as
soon as the extra session opens.
It's terms have not been decided up
on, but it is believed they will ex-
empt all incomes below $4,000 or S5,-
900 and will provide a tax of one per
cent upon the majority of personal in
comes that do not run to an excessive
figure.
Hull May Draft 1t.
The drafting of the bill to put the
tax into effect, it is expected, will fall
to the lot of Representative Cornell
Hull of Tennessee, member of the
house ways and means committee, who
drew the excise tax bill proposed last
year by the Democratic house of rep
resentatives, but which did not be-
come 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 last night, Representative
Hull declared he favored making the
new tax an integral part of the finan-
cial system of the United States, to
remain in force without regard to the
character Of tariff bills that congress
may enact from time to time.
Collect at Source.
One feature, which, it is believed,
will be included in the law, win be
provision for collecting at the
source of the income. This feature,
now in operation in England, would,
require firms to certify amounts to-
pay individuals in salaries and fees
and pay the tax direct to the govern.
ment. 1t is believed this would re-
move much complaint that might be
made If the government had to inves-l
tigate every individual citizens in!
come and would prevent evasion Of
the law.
The annual amount that the govern
ment may realize under the income
tax is estimated by Democratic lead
ers in congress at approximately
$100,00O,000. This would include the
$3O,0O0,000 collected under the pres
ent corporation tax.
Wilson May Make Announcement.
Probably it will remain for Presi-
dent-elect Wilson to make official an
nouncement OF the income tax amend
ment to the constitution. To date, the
state department has received no.
tees of approval by the legislatures OF
only "a states, West Virginia, Della
ware, Wyoming and New Mexico not
having reported on their action. The
department cannot act upon anything
less than the official certificates of
state. Even when the certificates are
at hand the executive will not be in
position formally to announce that
fact. In matter of this importance
it is necessary to move with extreme
caution, and Secretary Knox, the Gus
todian of the certificates will refer
them to the solicitor of the depart
ment of state for examination as to
their sufficiency.