The Caucasian., 1913-12-11
THE INCOME yAH.
Its ConstitutiOnality Is To Re Vested
i'm the United State$ l,OuN1-


As was to be expected, the income
tax law. enacted at the recent ses-
sion of Congress, is beinE tested. rs
related in the picSyune of Dec. y,
the plaintiff in the case is Miss Elsie
DE Wolfe, an actress, who has on
tered suis ia chicago against the
Continental and Commercial crust
and Savings Bank O9 that city upon
certain bonds Deposited in enc bank,
which refuses 10 make payment TO
her of the 9ull smoun OF interest
collected by Che bank because the
bank is required by slae income tax
law to pay q certain amount OF that
interest to the government.
This is the first case in coule Vuess
tioning the justice and constitutions
ality of the income tax law, and it is
worth while to know upon what
claims and allegations the law Is
contested. 1t is claimed that out OF
a population of 9O,OO0O00 more or
less, in the United States, there are
cnly $4,000 persons upon whom al
income tax can be assessed, and
these persons charged with the tax
have never consented to its impos-
ton.
1t is also alleged that the tax vio-
lates the elements Of equality re-
quired by the Constitution in its
graduated scale of taxation. The
plaintiff has pointed out that she,
being an unmarried woman, was
subject not only to tax Of 1 per
cent on her whole income in excess
of $4,000, but was subject to an ad-
ditional tax of 1 per cent on that
portion exceeding $4,000 and less
than $4,000, an additional 1 per cent
between $4,000 and $4,000, an adj
ditional 1 per cent between $4,000
and 100000.
''On the other hand" the declara-
ton sets forth, persons with in
comes exceeding 100000 are taxee
only an additional | per cent on the
whole excess up to $250,0O0-that is
to say. on such excess they woulG
| be required to pay only one-sXtE
the rate of a person whose income
is less than 100000; persons whose
incomes exceed S250.0OO year ar.
taxed only | per cent on the whole
excess up to S5OO,O0O' that is one
tenth the rate levied on the plaintiff
and persons with incomes exceed
ing s5OO,OOO are subject to a penalty
of only 1 per cent, no matter how
great their annual revenues
The complainant claims that th'
law which penalties so severel,
such moderate incomes as hers
while allowing possessors of in.
| comes exceeding S500,000 to escap
with such a wholly disproportion
ate penalty, discriminates agains
her and operates to deprive her o
her property without due process
of law.
| While the suit is against bank
which holds plaintiffs securities i
trust, it is really against the Unite'
States law itself, and, without doubt
the government will find it neces
sary to defend its own acts. Thl
case will, in all probability, go u
to the Supreme Court of the Unite
States, and there may be no furthe
) action against the law awaiting TN
: decision.
One of the striking pretexts OF
< fered in opposition to the tax o
incomes is that these person
charged with the tax have neve
consented to its imposition
Who are these persons?''
Are these persons the person
with incomes limited, or are 'thes
persons" the ''bloated bondholders
the bond clippers" the big ricf
who are always complaining of tt
q injustice of government in impo
q ing on them the burden of taxatie
which should be fixed on the con
mon, ordinary taxpayers?