The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-02-03
Thirty-Six States Have Now
Ratified the Income Tax.
Action Is Taken by the WyO-
ming Legislature Today.
A new SOURCE OF REVENUE
Will Reduce the Amount Re-
quired From Other Taxes.
Alabama Was the First State
to Ratify 1t.

Cheyenne, Wyo., Feb. 3.-Wyoming g
wrested from New Mexico today the
honor of being the Both state to ratify
the proposed amendment to the federal
constitution providing for an income
tax The necessary three-fourths of
the forty-eight states have now rati-
fled the amendment and it will be add
ed to the constitution by congress.
Wyoming snatched the honor through
the unexpected action of it's legislature
in passing under suspension of the
rules the resolution favoring the tax.
Washington, Feb. 3-With the final
ratification of the income tax amend
ment expected at any moment today
from the New Jersey or New Mexico
legislature Democratic leaders in con-
gress rushed their plans for Il law to
make it effective. 1t is expected
draft of an income tax law will be in
troduced in the house before the end of
this session and will then be re-intro
duced and passed soon after the extra
session convenes. The Democrats have
been confident of the ultimate success
of the income tax amendment and
have made their tariff plans with this
fin view. Representative Hull, of Ten
nessee, who prepared the excise tax
bill which congress failed to pass last
session is working upon the income tax
provision When finally introduced the
income tax will be designed to take
the place of both the existing corpora
ton tax law and the proposed excise
tax.
1t will levy tax on incomes as low
as $1,000. The income tax legislation
must originate in the house as do the
tariff bills. While the present corpora
ton tax raises only about $50 10000
the general income tax is expected to
bring nearly 800 100000 annually to-
ward the support of the government
The Amendment.
The provision authorizing an income
tax as now made part of the Federal
Constitution will be known as the
sixteenth Amendment and 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 regard to any CEN
Sus or enumeration
The change in the fundamental law
of the land marks a new epoch in the
American tax system. For the first
time congress is given specific author
ity of a constitutional provision. The
change also marks a broad develop
ment of the economic and fiscal sys-
tenn of the United States, permitting
incomes to be a basis for taxation,
similar 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 constitution, is that it adds a
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, oleomargarine and certain 9th
er articles Each of these sources at
present produces a little less than half
of the total revenues of the govern
ment. In 1911 the total govern
ment revenues were 700,100.9O6 and
of this customs duties yielded $313,
S46,269, while internal revenue taxes
yielded SS31,759,375. The remainder
came from sales of public lands, the
corporation tax and various miscel-
laneouS sources. Under an income
tax, however, a new and far-reaching
source of revenue is provided for the
government. and this will in turn re-
duce the amounts required from the
other sources of revenue, customs and
internal revenue, in order to meet the
expenses of the government This last
phase is likely to have an important
bearing On tariff legislation as here
after enacted.
Before the amendment formally be-
comes a part of the constitution to-
days action of the legislature must be
transmitted to the secretary of state
at Washington and proclamation of
the ratification made.
History of the Movement.
The first official step toward amend
ing the constitution so as to authorize
specifically an income tax was taken
bv. the senate on July Z, 1909. BY
unanimous vote, that body adopted a |
resolution, submitting this amendment
TO the legislatures of the respective
states Only a few days later, on July |
12 the house passed the resolution by |
q vote of 317 to IA.
The movement took form during the |
tariff debate in 1909. Amendments to |
the Payne-Aldrich tariff bill, incorpo- |
rating an income tax and inheritance |
tax measures were then pressed. |
Finally, President Taft sent message |
to congress, urging the passage of a |
tax upon 1.-The doing of business by |
corporations. measured by their in |
come" and the submission to the !
states of an income tax amendment to
the constitution
Senator Brown. of Nebraska, father
ed the amendment finally adopted. AS
introduced and sent to the finance
committee, congress was given power
to lay direct taxes on incomes with
out apportionment. When the amend
ment was reported out of committee
bv Senator Aldrich, the word direct"
bad heen eliminated The words ssfron1