The Birmingham age-herald., 1913-02-04

night, according to information received
l:ere today.
and Minnesota voted for ratification.
Thus 34 stotes had acted affirmatively
on the proposal Coaecticut. New Hamp
shire, Rhode Island and Utah by this
time had rejected the amendment.
Vetoed in Arkansas
A notable incident occurred in Arkan
sas during the consideration of the
amendment. Both houses of the legls-
lature passed resolution of approval
but Governor Donaghey vetoed 1t. This
veto" at once raised a nice constitutional
question. Representative Robinson OF
Arkansas, made speech I'm the House at
Washington, in which he challenged the
right of a governor to pass upon the
measure. 1t was said to be the first time
a governor had attempted to veto ratifica-
ton, although 1t had been customary
for governors to add their approval. The
state department has included Arkansas
in the list of states ratifying the amend
ment.
One of the most bitter contests over
ratification took place in New York state.
Governor Hughes, now a member of the
supreme court of the United States, sent
message to the legislature in opposi-
ton to the measure. He expressed him
self In favor of giving Congress power to
enact income tax, but declared the
amendment submitted gave the federal
government the power to strike a fatal
blow at state credit and state independ-
ence by taxing the income from state
and municipal bonds. Six prominent law
yers of New York led by Joseph III.
tnoate. former ambassador to England,
supported the attack by ringing me-
ttaf. al Jara he aryan naHp aC
having been rushed through the Senate
and House almost without debate" and
as giving Congress power to hinder, if
by tax on state and municipal bonds
They pointed TO the $20,000.0O0 New York
state bonds and the sS0000o,000 New York
city bonds, as being within the power
of Congress to tax, II the amendment
were adopted Senator Root took an ac-
tive part in favor of the amendment.
which was finally approved in a resolu-
ton in the form of bill, but only after
similar bill was defeated in the first
attempt to approve the amendment.
Legislation must now be enacted by
Congress before an income tax may be
collected the present amendment mere
ly 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 re-
ceive under such a tax, all will de-
pend upon the rates to be fixed by Con-
gress. In 1866, under the civil war in
come tax measures, $72,000.000 was coll
lected The income tax law of 1894 was
estimated to raise s30,000,000 annually.
Just preceding the passage of the
resolution by Congress in
909, Senator Bailey had introduced an
income tax bill, estimated to yield prob
ably $S0.000,000, proposed under the
Payne -Aldrich tariff act. Senator Cum
Minis introduced a measure. estimated
to yield s40.000,000. The corporation
tax measure has yielded in the neigh
borhood of s30,000,00 a year.
The Amount of Tax
The amount of the tax will depend
largely upon the style of income tax
levied The 1894 law provided for a fat
tax of per cent on incomes over $4,000
The Bailey bill authorized per cent
tax on incomes over $1,000. The Cum
Minis bill provided a graded tax, on in
comes over $4,000, the highest tax be-
ing 6 per cent on incomes of over $780,
900. Massachusetts,, Oklahoma, South
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 a fierce
debate occurred in Congress over the
continuation 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 it's own limitations
in 1872.
During the consideration of the tariff in
1898 the income tax question again arose.
President Cleveland suggested an income
tax on the income of corporations. Rep
rcsentative Mcmillan of Tennessee intro
duced the measure eventually adopted as
an amendment to the Wilson tariff BILL
The author of the measure declared that
under the customs tariff the taxes had
heen placed on what men need. while
under the income tax 1t would be placed
more on what men have. and less on what
they need.
In the Senate, Senator Hill of New
York became the foremost leader OF the
opposition to the bill. lie maintained that