The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-06-08
Representative from Tennessee and Author Of Feature Of
Underwood Tariff Measure Tells How
1t Will Work Out.

that his noticeably fine eyes and thick
hair are brown, and that he is. in short
very good looking man. 1t is seen
too, that his manner is grave and leis-
urely, though he is kind and courteous
of bearing. He does not say 50, but he
has studied the tax laws of all ages and
countries. Neither does he refer to ths
fact that he is a Democrat, nor to his
belief that a protective tarir is unsouno
industrially and socially.
Mr.. Hull Clears the Atmosphere.
Before you begin your inquiries" he
says in a low voice and with the accent
of the South, at may be well for you 70
remember that the national government
since the year 1909 has levieu a tax on
the net incomes Of corporations. A cor
poration- subtracts the expense Of its
operations from its revenues and thus OBJ
tains the sum Of its net profits. A tax
of per cent Is charged against the profits
and the money SO collected is paid into
the treasury at Washington II the net
earnings Of corporation amount to 800.
900 a year, the tax would be $1,000 Thus
$4,000 would remain for distribution
among the shareholders or for other pur-
poses.
Now the proposed law. let me explain,
extends the tax on net incomes so as to
cover individuals. Corporations. as have
said, are being taxed at present by the
national government Hereafter. persons
also are to be taxed. An income tax is
not a tax on property. it should be re-
membered. 1t is not tax on one house,
ones store, ones bonds or stocks, or one's
factory. Property taxes are only laid by
our States. The national government can
not tax property. except by apportioning
the tax among the States according to
population. The sixteenth amendment
to the Constitution. recently ratified
by sufficient number of States. does per-
nit the national government to levy a tax
on incomes. on the earnings Of the citi-
Gems property, such as bonds and so forth,
and on the earnings OF the citizen himself.
Indeed, an income tax might properly be-
called a tax on prospeHty-that is TO say.
on the success of ones businessman also
a tax on capability-that is to say. on
ones ability for earning money.
The principle that some men are bet
ter able to pay taxes than are other men"
Mr.. Hull goes on to say. lis not a new
tangled notion of the twentieth century.
Away back in the year 1876 the colony of
Massachusetts, Bay declared by statute
that millers, BARRIERS masons, blacksmiths.
carpenters, shoemakers, tailors. and
butchers, because OF their trades, were
more enabled to bear the public charge
than were men not having the advantage
OF a regular training in some definite en-
ployment
Explains the Word Income.
But I am here. Mr.. Hull says. with
an apologize smile and gesture, ito
reply to inquiries and not to discuss
what many persons believe to be q
very technical question. I want to re-
peat, however, what 1 said at the be-
ginning: The purpose of the Democrats
in 1913 is TO broaden the Republican
law of 1909 and put a tax on persons
and not alone on corporations"
Yes, on persons" says q man in one
Of the front seats. but what kind Of
persons?'
On all those" Mr.. Hull answers.
whose annual net incomes are more
than $4,000"
What is meant by the word in
Gomez the same man asks.
"A lawyers income" Mr.. Hull re-
plies. will be the aggregate of his
yearly fees and such money as may
come in from his investments. II his
ices amount to $4,000 annually (sev-
sral gentlemen in shiny frock coats