Evening star., 1914-01-26
WHO SHOULD PAY CHARGE
TO COLLECT INCOME TAX?
Problem Arises Even if Legality OF
Law Is Sustained by
the Courts.
Accumulation of Protests Against
Constitutionality at Internal
Revenue Bureau.

Should the income tax provisions OF the
tariff law be sustained by the courts, III
litigation to test its constitutionaliy, and
it be decided that Congress had ample
power to require financial. industrial and
commercial institutions and agents TO act
as the agent of the government in col
lecting the impost at the source, the
problem would still remain as to whether
tho expense incurred in withholding the
tax at the source would be a proper and
just charge against the government, col
lectable through the courts
rhe contention that collection at tae
source is an illegal feature OF the IN
come tax provision of the law WI hot
be admitted by government officials o.
the Treasury Department and TIE IA
terpal revenue bureau charged with it's
and administration We'll"
it is admitted that the question i
raised in many quarters. and undouu'-
edly will be tested in the courts, Ger
tidence is expressed that the judicial
verdict will approve the law No JIir
ion is expressed. however, against ~"
possibility of the expense beins proper
ly chargeable against the United states
That the expense is proportionatrN
large to the amount OF tn. tax collect
ible is said to be freely conceded On
Banking institution in the rar west, -
,laking returns on $50 withheld at the
source, stated that it had heen put to an
expense four times the amount OF the "a
collected. One OF the big banks IN NeN
York CITY has estimated that its annGa
expense will be S24 90: this bank is cef-
tain to be one of the protestants. having
already intimated its purpose to object
Other Protests Filed.
There is undoubtedly an accumulation
of protests against the constituuonaHtF
of the law in the internal revenue bureau.
although no statement as to what corpo-
rations have taken this method 10 voice
complaint is obtainable. The attitude oi a
number of railroad corporations IN many
nay.fs OF the country has been made iilain
some hjg commercial corporations have
announced their purpose TO take the same
course.
Government officials charged with ad-
n,inistration OF the law anticipate .
number of attacks on the constituconaltN
of the income tax. That the !aw IN its el',
tirety. and the constitutional rlght ~
congress to enact it. will be subject ot
litigation is expected. The autude "l
many women of suffragist afliatioh no
mad. II clear that the law will be assi!l-
ed As taxation without representation
hut In the past. in making this conteh-
tion. women have had poor stand ng III
court. There are number OF nlinoe
features of the law. il is stated that are
also sure to be subject OF attack
Important Question Arises.
should the provision Of the law f"r
a,,,ction al the source fall by court
decision as unconstitutional, the ques-
10, arises whether the law, SO einasc'i-
lated, could be administered TO require
direct payment of the tax by inaiNioua.
Carnoration lawyers present the argu-
ment that the law provides collection AT
the source as the essential method OF col
lection. and that no system would remain
with the means of collection eliminated.
Administrators of the law. however.
point out that individuals are already re-
auired by the regulations TO file a state.
ment of their liability to the tax, ana
that these returns would be available as
a basis of collection. The lack of infor-
nation at the source, following the pos
sible defeat of the source collection TEA
ture. might raise difficulties in the way
of learning the resources of individuals
and so decrease the amount of the col
lection, but it is the belief that no amend
ment or revision OF the law would be re-
quired to make it operative.