The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-04-04
INCOME TAX LIMITATIONS.

1t Is understood that the WAYS and
| Means Committee of the House of
Representatives is great deal at
sea in framing lis income tax bill, as
TO the matter of fixing the limit
of income for any individual, below
which a lax on that income shall not
be exacted. Various sums have been
proposed, from $4,000 to $4,000, $4,000,
and even $4,000, with $4,000 as the
limit most frequently fixed by those
who speculate upon what that limit
is to be- a comparison OF the mini
mum limit which is to escape taxa
tion, as fixed in other countries
where incomes are taxed, shows that in
| Austria the limit is very low indeed,
being $l13. In Italy it is yet lower,
| 1920. In Prussia it is 1925. and in
Great Britain il is &l60, approximate
| ly $500. But in those countries the
tax on the income for considerable
amounts above the lowest exemption
| is very light, increasing in severity
as the income rises high.
So far as the probability Of the limi-
tation of this tax is concerned. we
might hazard the guess that the House
will put it at $500, as exempting the
members of Congress from the income
tax, since the salary Of each member
is $500. AS the tax applies to. iu.
comes "from whatever source de-
rived it is clear that if the members
of Congress fix the limitation below the
amount of their yearly salary, $500,
they themselves will have to pay tax
on their incomes above the limit; but it
may be assumed that they will hesi-
tate about taxing themselves on this
account.
And so we suggest that the probable
low limit of taxation on income account
will be fixed at $500 in the proposed
income tax bill which the House is
likely to pass. but which it ought not
to pass in view Of the protestations OF
the Democratic party as to economy.
and of the needlessness of imposing
such a tax upon the people.
We have frequently referred to the
fact that the idea in proposing the
amendment which specifically allows of
the imposition of an income tax was
so that the Government would have this
resource in case of emergency; that it
was never the intention to have the
income tax part of the regular or
routine revenues OF the Government
This view is empbaticaly supported in
the April financial review of the Ma.
tional Bank Of the City of New York,
which opens very thorough discussion
of the income tax with the following
statement of fact:
BY proclamation OF the Secretary of
State. late in February, the Sixteenth
amendment declared valid to all
intenis and purposes as rart OF the
Constitution" The amendment is In this
language:
Article xvL-The Congress shall
have power 10 lay and collect taxes
on incomes, from Whatever source
derived. without apportionment
among the several States. and with
out regard 10 any census or emu
meraton.
This amendment was submitted to the
Legislatures OF the different States by
a joint resolution of Congress passed at
the special tariff session In the summer
OF 1909. It's adoption by Congress grew
out Of the efforts OF certain Senators to
incorporate an income tax provision In
the tariff bill After some preliminary
skirmishing, and considerable debate, a !
compromise was reached; through the in
tervcntion Of the President. by which |
the existing excise tax on the profits |
OF corporations was made part of the
tariff bill and this amendment was sub |
mtted TO the people.
In the debate oil the amendment res
olution stress was laid by some of its |
supporters upon the proposition that the |
adoption OF the amendment did not nee |
essariy mean the immediate exercise by |
Congress OF the power IL confers upon
that body, They conten6ed, however. |
that the power 10 tax incomes should |
rest unquestioned with Congress as an
emergency provision. and they cited as |
an argument. the contingency of great |
war which would strain the financial rn-
ergies OF the government and render I'm |
peratlve the need for such relief as they |
proposed.
There is no reason 10 doubt the sim |
ccrity Of these arguments. Nor Is there |
reason 10 doubt that now the power has |
been conferred on Congress to lay a |
tax on incomes n will proceed straight |
way to do 30, and the emergency argu- |
mcnt which secured the power Will be |
ignored, IL not forgotten.