The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1913-02-12
THE INCOME TAX

fed by three-fourths of the
states, becomes part of the
federal constitution, the Demo-
cratic Congress faces the task
and the opportunity of turning
this measure to fruitful ac-
count. This the party leaders
will undoubtedly do; and, in all
likelihood, at the special session
to be called early in the spring.
The amendment itself simply
authorizes the levy of a tax on
? Acomes; it is for Congress to
fix the rate and the scope of the
tax and to establish other spe-
cific terms. Precisely what
these will be is as yet uncertain.
General opinion is that the tax
, will be limited to incomes OF
five thousand dollars annually
and more. In that event,
comparatively low rate, it is
reckoned, would yield the gov
ernment revenue of not less
than one hundred million dollars
a year. In England, where an
income tax has long prevailed,
the tax rates are higher than
has ever been suggested for this
country; applied to the United
States, they would produce
something like four million dol
lars a year. 1t may be that a
graduated tax will find consid-
GRAFTON and that the rate on un-
earned incomes will be made
higher than that on incomes
commonly designed as earn
ed" Such a plan would doubt
less add greatly to the govern
ment's revenue from this gen
eral source.
Whatever the particular pro-
visions of the law may be the
Democrats will be eager to avail
themselves Of the opportunity
the amendment affords. 1t
will be of especial value in meet
ing any losses of revenue which
the downward revision of the
tariff may entail. Indeed, the
ratification of the amendment
could not have come more sea-
sonably for the Democratic
tariff program. A little less
than half the governments rev.
enue is now derived from duties
collected at the ports. When
one item of the tariff is reduced
or cut off, some new provision
must straightway be made for
the revenue it has furnished;
and thus the task of tariff re-
vision often becomes exceed
ingly complex.
The Democrats have contend
ed, to be sure, and justly so,
p that many of the existing
schedules have been framed not
with a view to meeting legiti-
mate government expenses, but
for the ultimate purpose of pa
tronage to special interests. 1t
has been a tariff not for reve-
nue. and not for consistent pro-
lection, but, in many of it's
phases, a tariff for privilege.
Yet, every part of this sys-
tenn is so involved and dovetail-
ed with all other parts that the
work of readjusting it presents
divers difficulties; and not the
least of these is that of COM
pensatipg losses in revenue.
will therefore, simply ex-
pedite the all-important need of
genuine tariff revision. Realiz-
ing this fact, the Democrats
will undoubtedly bring forward
an income tax measure during
the early stages of the extra
session and pass it, along with
a new tariff law, without diff
Guilty or delay.
The circumstances that only
four states of the entire eight
and-forty have thus far reject
ed the amendment, while thirty
six have approved it and sew
. eral others will probably do so,
shows the nationwide favor
with which this progressive
measure has been received.
The amendment was proposed
in 1909 through resolution
that passed Congress almost
without dissent. Since then it
has been ratified by vast ma
iority of the state legislatures
with little or no opposition. 1t
marks a long and constructive
stride in the country's economic
practice. 1t will rebound to the
enduring good of this nation
and itS neOnIe -Atlopto Jour