Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-02-03
WYOMING RArIFiEs AMENpAsGNT.
COMPLETING REQUIRED MUM.
BER or STATES.
CONGRESS- TO PUT LAW IN
FORCE At SHORT sEssloN
All Incomes Of 5000 Or Mors 70 u
Assssssd-Provisions and limita.
tions Left 70 consrsss-PrebAbly
Will supsrcsds Prsssnt cerperatisa
Tax.

Washington. Feb s.-An income tan
is now one of the provisions OF the cons
stitution of the United States.
Wyoming's ratification today OF the
income tax amendment-the sixteenth
change in the constitution and the
iirst since the reconstruction-comp
ed list of thirty-six states-thrce-
fourths Of the union. which have ap-
proved the provision.
Congress now will enact law to levy
the tax and it probably will become ef-
fective during the extraordinary ses-
sion to be called by President Elect
Wilson In March.
The tax itself. its provisions and
limitations are all left to congress. The
new law possibly will supercedo tho
corporation tax and provided for q tax
on all incomes above $1,000, tltho there
has been some sentiment In favor max.
ing the limit as low as $4,000. Cons
sressional leaders who have been pre-
pairing for the final ratification from
the states estimate an income tax
would hiring in about $100.000.000 to the
government.
IL Sixteenth Amendment.
The provision authorizing an income
tax as now made part OF the federal
constitution will be known as the six.
teenth Amendment" and reads as fol-
lows:
Article XvI-The congress shall
have power to lay and collect taxes on
incomes. from whatever source derived.
without apportionment among tho
states. and without regard TO any CEN
sus OF enumeration"
The change in the fundamental law
OF the land marks n new epoch In the
American tax system. For the first
time congress IL given specific authors
ity by a provision OF tho federal COM
stitution to levy an income tax. All
previous efforts for a tax Of this kind
have been without the explicit author
ity of constitutional provision. Tho
change also marks broad Develop
ment OF the economic and fiscal system
Of the United States. permitting In
comes to be a basis for taxation, sim.
ilar TO the systems now In force In
Great Britain. Austria. Switzerland,
Spain and various other countries.
New Source Of Revenue.
Probably the most important aspect
OF an income tax, AS now authorized
by the commission. is that 1t adds
new source OF revenue for the govern
ment. 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, oleomarEarine and certain 9TH
er articles. Each of these sources at
present produces little less than half
of the total revenues of the govern
menf. In 1911 the total government
revenues were S70O. 1o0.906 and OF this
customs duties yielded s313.S46.269.
whiie internal revenue taxes yielded
1881 .75o.375. The remainder came from
sales Of public lands. the corporation
tax and various miscellaneous sources.
Under an income tax however. new
and far-reaching source OF revenue is
jrov Ided for the government. and this
will in turn reduce the amounts re-
uuired from the other sources OF rev.
enuc, customs and internal revenue. In
order 10 meet the expenses OF the gov
ernrnent This last phase is likely to
have an important bearing on tariff
legislation as hereafter enacted.