East Oregonian : E.O. (Pendleton, OR) 1888-current, 1915-12-25
President, Supreme Court and
Others Have Designs on the Act
-ItMay go Into Congress.
MAY PULL OUT OR MAY DIE
Five Gases Now Pending in Supreme
COurt-Wilson Wants Exemption
OF the Tax Lowered - McAdOO
Wants Rates Increased 49, Other
Features Are Wanted Changed
lunlted press correspondenee.l }

Omitted Press Correspondence
WASHINGTON, d. C., Dec 25.--
The income tax law Is in for a long.
hard winter. The president, the su-
preme court secretary OF the Treas
ury McAdoo and any number Of com
mittees and factions In congress have
designs on the act. 1t may appear
strong and well in the spring. it may
be crippled and It may be dead The
fate Of the law and Of the many am
endmcnts which are being planned.
rests largely upon the supreme courts
decision In the five cases pending II
the law comes through that ordeal
whole, II must still pass into tho
hands OF congress President Wilson
wants the exemptions of the tax low
cred and the surtax started At low
or figure and increased more rapid-r
ly than at present Secretary Nc
Adoo wants the rates OF taxation on
both individual ana corporate in
comes increased. the exemptions re-
duced from $4,000 TO $4,000 for single
persons and from $4,000 TO $4,000 for
married; ana the surtaX started att
$4,000 or $4,000. instead Of $20,
O00 Many administration men iu
congress will seek to amend the leW
IN conformity with these plans Sen
ator owen wants the tax increased 60
tifty per cent on incomes Of $50
0O0 year and up. Republicans arc
expected to Introduce bills removing
the collection AT the source" feature
and possibly tightening the surtex.
The income tax law became effective
October 3. 1918, after a constitution /
al amendment for II had been ratified |
by three-fourths of the states. Most
tax authorities favored il because II /
was 10 be the largest trial on this
continent OF system designed toI
make tax dodging difficult The adj
ministration liked it because il /
brought a revenue Of $S0000,0O0 a !
year. Now the administration wants
to raise more revenue by this means |
and opponents Of income taxation
want TO amend Il To raise less. The
present law provides an exemption up (
To $4,000 of income for single persons
and $4,000 for married persons. ono
per cent Is collected on incomes up
to 500. 600 on amounts between that
and $50. o0o an additional one per
cent and further Increases up to six
ucr cent on incomes over $50OOOo.
It is this increase above one per cent,
the surtax which with collection at
the source" is being fought. To pre-
vent the hiding of incomes the law
ordered that all companies paying
dividends on stocks and bonds deduct
the amount of the tax and pay It to
the government before they raid the
dividends to the stock and BOND
holders This is the collection at
the source" feature. There was an
immediate wall when the tax first
took effect. and several taxpayers
took their cases into court, These
have sifted down to the five now be-
fore the supreme court. In these five
almost every provision Of the law IS
attached, and upon the decision OF
the court rests the constitutionality
OF all Of these provisions. A decl-
sion is expected at any time, but 1t
Is possible the court win wait unth
Justice Lamar now i'll. returns TO {
the bench, before making a decision.
Congress is expected to go ahead
with its amendments II the court de-
cson is not returned soon