The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1913-02-07
INCOME TAX GAN
NOW Be ASSESSED
IN LEGAL MANNER
TWO MORE THAN REQUISITE
NUMBER OF STATES RATiFY
AMENDMENT.
HILL MAY DRAW The BILL
One Hundred Million Dollars Expect
cd TO Be Realized to Nations Rev.
enue When Law Becomes Effective
and in Working Order.


enue When Law Becomes Effective
and in Working Order.
! WASHINGTON. Feb. 4.-Direct
faxes upon the incomes of citizens of
the United States, whether derived
from idle capital or from the conduct
Of business, were made possible to-
day by the ratification of the six
tpenth amendment to the federal con-
stitution. Delaware, Wyoming and
New Mexico, indorsing the income
tax amendment through their respec-
tive legislatures, completed list of
thirtyeight states that have approx
ed it. two more than the three-fonrths
necessary for its final adoption.
Informal notice of the final adop-
ton of the new amendment was Civ
en- to the senate by Senator Brown,
of Nebraska, who introduced the res
olution in 1909 upon which the pro-
posal for an income tax was submit
ted to the states.
Drafting of the bill to put the tax
into effect, t is expected, will fall
to the lot of Representative Hull. of
Tennessee, member of the ways
and means committee who drew the
excise tax bill proposed last year by
the democratic house of representa-
tives but which did not become a
law .....
The income tax will be designed to
supplant the present corporation tax,
and will apply to the income of indi-
yiduals, firms and corporations. In a
statement tonight Representative
Hull declared he favored making the
new tax an integral part of the finan-
cial system of the United States, to
remain in full force without regard
to the character of tariff bills that
congress may enact from time to
time
One feature which it is believed
will be included in the law will be
provision for collecting at the
source" of the income. This feature
now in operation in England, would
require firms to certify to amounts
they pay to individuals in salaries OF
fees end pay the tax direct to the
government 1t is believed this
would remove much complaint that
might be made if the government had
to investigate every citizens income
and would prevent evasion of the
law
The annual amount that the gov
eminent may eralze under the in
come tax is estimated by democratic
leaders in congress at approximately
slOO,OO0,O00, This would include
the $30,O00,OOO collected under the
present corporation tax.
One of the important results O
an income tax" said Representativ,
Hull, will be the curbing of un
necessary federal expenditures
When great part Of the govern
ments income is derived by a direc
tax upon the citizens of the nation
they will scrutinize more CAREFUL.
the appropriations made by con
gress."
Probably it will remain for presi
dentelect Woodrow Wilson to wax
Official announcement of the incom
tax amendment to the constitution
Following is the list of state
which ratified the amendment: Ala
bama, Arkansas, Arizona, California
Colorado, Delaware. Georgia, Idaho
lllionis, Indiana, Iowa, Kansas, Ker
lucky, Maine, Maryland, Michigan
Minnesota, Mississippi, Missouri
Montana, Nebraska, Nevada, Ne,
York, New Mexico, North Caroline
North Dakota, Oklahoma. Oregon
South Carolina, South Dakota, Tel
nessee, Texas, Washington, Visor
sin, louisiana, Ohio, West Virgins
Wyoming.
The following rejected it, Connec
lcut, New Hampshire, Rhode Islant
Utah.
No action or only partial actio
was taken In the other states.
Already some questions have bee
raised as to the legality of the IT
turns One was in the case of Kel
lucky, where the legislature initial
adopted the amendment in advanc
q the receipt from Secretary Kno
Of the formal communication whic
should serve as basis for state
action in consequence Of this hast
and the use of a newspaper clippin
the language of the enacting resol
ton was slightly erroneous. AS SOC
as the error was discovered an a
tempt was made to correct 1t by