Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1913-02-04
RAT|FY INCOME
TAX AMENDMENT
ACTION TAKEN BY LAST
THREE OF NECESSARY
STATES
NOW BECOMES EFFECTIVE
NEW CLAUSE To CONSTITUTION
HAS BEEN MATTEL; OF con.
TFNTION FOR MANY
YEARS
81 Associated Pres

CHEYENNE. Wyo.. Feb. S.-Un'
der a suspension of rules, both Hous-
es OF the wyoming Legislature this
morning passed a resolution ratifyine
the income tax amendment TO the
Federal constitution.
Wyoming thus beat New Mexico
and New Jersey. the states compet-
ing for the honor OF being the las,
OF the 80 commonwealths necessary
20 put the amendment In effect.
The news was received this after
noon. however. that Delaware claims
the victory. having adopted the reso'
luton two hours before Wyoming.
The New Mexico House adopted
the resolution this afternoon. 1t had
already been adopted by the Senate.
Provisions of Amendment
The provision authorizing an in
come tax as now made a part OF the
Federal Constitution will be known
as the Sixteenth Amendment" aud
reads as follows:
Article XVI-The Congress shall
have power to lay and collect taxes
on incomes. from whatever source
derived, without apportionment
among the states. and without re-
gard to any census or enumeration
The change in the fundamental
law of the land marks new epoch
in the American tax system. For
the first time Congress is given spe-
cific authority by provision OF the
Federal Constitution to levy an in
come tax. All previous efforts for
q tax OF this kind have been with
out the explicit authority OF Con-
stitutional provision. The change
also marks a broad development OF
the economic and fiscal system OF
the United States, permitting in
come to be a basis for taxation, simi-
lar TO the systems now In force In
Great Brittian, Austria, Switzerland,
Spain and various other countries.
Probably the most important as
pect OF an income tax. as now au-
thorized by the Constitution, is that
II adds a new source of revenue for
the government. At present the
two great sources of government
revenue are customs duties levied
by tariff acts on goods imported
from foreign countries: and internal
revenue taxes on tobacco, spirits,
oleomargarine and certain other ar
ticles. Each of these sources at
present produces a little less than
half of the total revenues OF the gov
ernment In 1911 the total gov
ernment revenues were 500, 0,l00,-
goo, and OF this customs duties
yielded s313,S46,269. while internal
revenue taxes yielded s33l.759,375.
The remainder came from sales OF
public lands. the corporation tax
and various miscellaneous sources.
Under an income tax however. a
new and far-reaching source of rev.
enue is provided for the govern
ment. and this will In turn reduce
the amounts required from the other
sources OF revenue. customs and in
ternal revenue. in order TO meet the
expenses Of the government. This
last phase is likely to have an i'm
portant bearing on tariff legislation
as hereafter enacted.
Before the amendment formally
becomes a part OF the Constitution
todys action OF the Legislature must
be transmitted to the Secretary OF
State at Washington and proclama-
ton of the ratification made.
The first official step toward
amending the Constitution so as TO
authorize specifically an income tax
was taken by the Senate on July Z,
1909 BY unanimous vote. that
body adopted resolution. submitting
this amendment to the Legislatures
of the respective states. Only a few
days later. on July IL. the House
passed the resolution by vote OF
ci7 10 "a.
The movement took form during
the tariff debte in 1909. Amend
ments to the Payne-AldrIch tariff
bill. incorporating an income tax
and Inheritance tax measure were
then pressed Finally. President
Taft sent a message 20 Congress.
urging the passage Of a tax upon
the doing OF business by corpora
lions. measured By their income. "
aud the submission 10 the states Of
IN income tax amendment 70 the
Constitution
fContinne1 on pare Figh'l