Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-02-14
THE INCOME TAX
How II Will Operate and What Il WA
y..t Probably Raise. ifsia

-
Now that the income tax amendment
having been ratified by three -fcurths
Of the states, becomes part Of the
Federal Constitution, the Democratic
congress faces the task and the oppor-
tunity Of turning this measure TO fruit
full account. This the party leaders
win undoubtedly do; and, In all likeli@
hood, at the special session to be called
early in the spring.
The amendment itself simply au-
thorizes the levy Of tax on incomes;
Il Is for congress to fix the rate and
the scope Of the YAK and to establish
other specific terms. Precisely what
these will be Is as yet uncertain. Gen-
eral opinion IL that the tax will be linn
tied to incomes Of five thousand dol
lars annually and more. In that event,
q comparatively low rate, 1t Is reckon
ed, would yield the government q reve-
nue. Of not less than one hundred nil
lion 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 hundred million
dollars a year. It may be that grad
uated tax will find consideration and
that the rate on unearned incomes Will
be made higher than that on incomes
commonly designed as earned" Such
a plan would doubtless add greatly to
the governments revenue from this
general source.
Whatever the particular provisions
of the law may be, the Democrats will
be eager to avail themselves Of tie OPP
portunity the amendment affords. 1t
will be Of especial value In meeting any
losses Of revenue which the downward
revision Of the tariff may entail. In
deed, the ratification Of the amend
ment could not have come more sea-
sonably for the Democratic tariff pro-
gramme. A little less than half the
governments revenue Is now derived
from duties collected at the ports.
When one item Of the tariff is reduced
or cut OF, some new provision must
straightway be made for the revenue IT
has furnished; and thus the task OF
ingly complex.
The Democrats have contended, to
be sure, and Justly so, that many OF the
existing schedules have been framed
not with view to meeting legitimate
government expenses, but for the ulti-
mate purpose Of patronage to special
interests. It has been tariff not for
revenue and not for consistent protec-
ton. but, in many Of its phases, tar
iff for privilege.
Yet, every part Of this system Ia so
involved and dovetaiied with all other
parts that the work Of readjusting 1t
presents divers difficulties; and not the
least Of these Is that Of compensating
losses in revenue, will therefore, simply
expedite the all important need OF gen.
uine tariff revision. Realizing this fact,
the Democrats will undoubtedly bring
forward an income tax measure dur
ing the early stages Of the extra ses-
sion and pass 1t, along with new tar
iff law, without difficulty or delay.
The circumstances that only four
states of the entire eight and forty
have thus far rejected the amendment,
while thirty-six have approved II and
several others will probably do SO,
shows the nation wide favor with which
this progressive measure has been re-
ceived. The amendment was proposed
In 1909 through a resolution that passed
congress almost without dissent. Since
then II has been ratified by vast ma
jority of the state legislatures with lit
tie or no opposition. 1t marks long
and constructive stride In the country's
economic practice. 1t will rebound to
the enduring good Of this nation and
its people.-Atlanta Journal.