Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-17

requested a conference upon the subject.
While the merry little war was being
waged back and forth the income tax
law died by its own Limitation, and so
it never was repealed. This recalls the
fact stated in a previous article that the
law of 1894 did not need to be repealed
after 1900, since it expired by limita-
ton that year:
1t is rather generally agreed that the
income tax law practically saved the
finances of the federal government from
absolute collapse during the civil war
No serious question as to it's constitu-
tionality ever was raised. and Congress
showed that 1t never had the slightest
idea that it was a direct tax. The House
provided for direct tax of $2O.OOO.OOO and
an income tax, while the Senate held
that inasmuch as direct tax had been
imposed upon property 1t was well to hold
up the exempted income higher than 9TH
erwise would have been done.
1t is interesting to consider the amount
of money that was raised by means which
the Supreme
Total Collections Court a quar-
Under the Statutes. tury later de-
clared to be unconstitutional. The total
collections under the law from start to
finish amounted to $376.0oo,OOo. The in
come tax law with the exemption or
S.. 900 did not hit any large proportion OF
the people. In 1868 the revenues from
the law amounted to upward of $4o,oo,-
COO The entire amount was paid by only
100000 people out of a total population or
10000, oOO Thus only one person In l6o
of the country's population at that time
had an income of 81 900 or more. Even
considering that the families of the per-
sons paying the tax were affected, 1t stlli
follows that only one person In forty 1eit
its direct burdens. The 2JOOOo people
who paid the tax had total incomes of
$500. OOO, 900
Most authorities concede that the as1-
tation which finally led to a refusal OF
Congress to longer extend the operation
of the income tax was probably more
result Of the excessive rates than or o.
lection to the principle itself.
Commissioner David A. Wells, perhaps
the foremost student of matters of taxa
ton In the history OF the country, SCI
forth In his annual report that tax OF 0
per cent was the heaviest that mad ever
been imposed by any nation except in
time of war or other extraordinary ma
tional exigency. He thought tax or
per cent would not be lodged where
tax of 5 per cent was, and that this alone
enue than was afforded by the higher
rate He also recommended that, in ad-
dition to the exempted income of $1,000.
there ought to be an exemption To- rent
of about $500.
In spite Of repeated assertions in many
quarters that an income tax law makes
nation of liars and false sWearers. one
looks In vain over the records of the IN
ternal revenue bureau Of the Treasury
Department for any evidence to support
the assertion. That there were those who
did not make proper returns goes. with
out saying. But the proportion certainly
was no greater than the proportion of
people who undervalued goods at the
custom houses or who made or drank
moonshine whisky. Most Americans think
that our ideals Of good citizenship have
risen to a higher level than character
ICED the period following the civil war.
Perhaps the income tax law soon to be
enacted will afford a very fair yardstick
by which to determine whether they have
gone higher, lower or remained station