The Barre daily times. (Barre, Vt.) 1897-1959, 1913-02-26

the S20,000000 New York state bonds
and the sS00,0OO000 New York City
bonds, as being within the power OF
Congress to tax, if the amendment were
adopted. Senator Root took an active
part in favor of the amendment, which
was finally approved in the form
OF BILL but only after a similar bill
was defeated in the first attempt to APP
prove the amendment.
| Legislation must now be enacted by
Congress before an income tax may be
collected, the present amendment merely
giving Congress the power to lay such
a tax. Only the most general kind of
estimates are being INDUCED in as to
what the government may receive under
such tax, as all will depend upon
the rates TO be fixed by Congress. In
1866, under the Civil war income tax
measures, S72,000,000 was collected. The
income tax law of 1894 was estimated
to raise $50 100000 annually. Just pre-
eeding the passage of the amendment
resolution by Congress in 1909, Senator
Bailey had introduced an income tax
bill, estimated to yield probably $50.
100000, proposed under the Payne Aid
rich tariff act. Senator Cummins in
troduced measure, estimated to yield
S40000.000. The corporation tax meas
ure has yielded in the neighborhood of
s3o,0o0,0o0 year.
What the Tax Will Bring.
The amount of the tax will depend
largely upon the style of income tax
levied. The 1894 law provided for a
LAT -
over $4,000. The Bailey bill author
lied three per cent. tax on incomes
over $1,000 The Cummins bill pro-
vided graded tax, on incomes over
S. 900, the highest tax being six per
cent. on incomes of over 100000. Mas
sachusetts, Oklahoma, South Carolina,
North Carolina and Virginia are states
now possessing income tax systems of
varying details.
Agitation over income taxes has eX-
listed in the United States since the
Civil war. The Civil war measures were
allowed to stand among the statutes
without being stricken down by the
courts, largely on the ground of being
measures. In 1870 q fierce
debate occurred in Congress over the
of the income tax meas
ures inherited from the Civil war. SEN
ator Sherman led the defense, claiming
the tax was the most just and equi- |
table tax levied by the United States" |
The tax expired by its own limitations
in 1872.
During consideration of the tariff in
1893 the income tax question again |
arose, President Cleveland suggested an |
Al
lions. Rep. Mcmillan of Tennessee in
troduced the measure eventually adopt
a as an amendment to the Wilson tar
If bill. The author of the measure ie-
,lared that under the customs tariff
he taxes had been placed on what men
need, while under the income tax, it /
would be placed more on what men have,
md less on what they need.
In the Senate, Senator Hill of New II
York became the foremost leader of j
he opposition to the bill. He main
aimed that income taxes were the nee
ssary accompaniment of monarchial
governments, but they are Justly re-
rarded as odious and unnecessary in free
epublies." Senator Sherman. who
ought the retention of the Civil war
ncome tax, now opposed the measure,
laiming such a tax ought to be levied
" the states and not by the federal
government.
The measure came quickly before the
upreme court of the United States
7heh rendered the famous decision hold
ng the law unconstitutional The de-
ision was given by the close vote of /
to 4. The court held that the tax
'as "direet" tax. and not being APP
ortioned among the states, according
0 the census, or enumeration, as d.
eet taxes were required TO be under
he constitution, was unconstitutional
Friends of the tax were at once d. :
ided into two groups. One advocated
assing another income tax law de-
igned to overcome the objection of
he supreme court, and the other want
] to amend the constitution. Various
rejects were put forward from time TO
me, but il was not until the pres
It measure took form and was car
ed through TO final ratification that
ny practical results were secured.