Arizona republican., 1916-01-25
INCOME TAX |S DECLARED TO BE CONSTITUTIONAL
Republican A. p. Leased Wirel

Republican A. p. Leased Wirel
 WASHINGTON Jan. 24 TEe income tax Was declared constitutional today tv the supreme court in an unanimous decision which swept aside every con tention raised against it. and, in the opinion of congressional leaders. op- cneo the way for increasing the tax rate on great fortunes to help pay for national defense.
 Proposals are pending in congl ess to tax incomes of more than $1,000. 0o0 as higl as fifty per cent. Leaders on all sides agree that out of the impetus which the decision today will give such proposals is likely t0 come a definite movement to levy on the revenues from great private fortunes for some of the millions the sovcrnment must raise to carrN out the army and navy increases. "Thc supreme courts decision has absolutely unfettered the income tax as source of reVenue' said Reprcsen- tativc liull of Tennessee. author of the | law. "Au loubt is rel moved and con 1rc~s k lcf; much freer to act. be i licVo congress will take advantage of th" opportunity tO ame.ld the law ma ] tcrialll Without any unusual or un- just charges it can he made to yield 1 S1N1. .00o to $lq5, ,0o0, 0Wo year. as Iaeaiust $N5.ooo,oo0 or S9o.0oo,o0o at i present.
 Representative Hull is preparing Iamendmcuts to carry the tax to in comes below S3.Ooo. and make graded increases in the sur-taNes on incomes ! exceeding >2o.0Oo year
 Sn far the problem of raising the revenue for national defense, although approached from many .aGlcs, has not ! been carried toward any definite sou- tioo. 1ecausr with tte constjtutionalitY of the income tax undecided. admir- istration leaders were reluctant to rlIce too much dependence on it. In . it's decision the supreme court con etruod for the first time the sixteenth amendment to the constitution under which the tax k levied. and gave it the hroadest interpretation possible. rejecting suggestions to c0nfine its scope to narrow limits The decision was announced by Chief Justice White and was unanimous. It was rendered in the appeal of Frank R. BluSha her
 from the action of the New York fed
 -ral court in refusing to enjoin the i Southern Pacific, of which Brushaber
 was stocl,holder, from paying the taN The ease raised substantially eV- cry point involved in all the five in come tax cases before the court, with the exception If the effect of the pro
 vision allowing mining corporations to
 make a five per cent deduction annual Ky from gross income for depletion of
 mines This provision is regarded a- being an amendment to the old cor poration tax rather than q feature of
 the income tax
 The basic terror of those who at-
 tackled the constituticnality of the tax
 Chiaf Justice White held. was in re-
 ga1ding the sixteenth amendment a-
 empoWcring the United States to levy
 a direct tax without apportionment
 among the states. according to popUla
 tiOn. In substance the court held that
 the sixteenth amendment had not em
 powered the federal government to
 levy Q new tax but that the whole purpose of the amendment was to re Iieye all income taxes from q consider
 ation of the source whence the income
 was derived
 Those opposing the tax had urgeC
 thtt the sixteenth amendment DroVld ! ed that income from whatever source derived" should be taxed without re
 gard to "pIortionment among tho states They argued that the Under wold-Simmnns income tax provision by reason of exemptions of certain in comes from taxation had not com' within the meaning of the amendment Chief Justice White said the poWe of the federal government to levy al
 income tax had never been questioned ; Quoting at length from the famous in come tax decision of 1895. he declare' the court then recognized the fac
 that "taxaton on income was in tn
 nature of an excise entitled to be en ' forced as such unless and until 1t Wa ' concluded that to enforce it Woul ' amount to accomplishing the resul $ which the requirement as to apportion
 ment of direct taxation was adopted {
 prevent in which case the duty woul c arise to disregard the form and con . slider the substance alone and henC C subject the tax to the regulation as T apportionmont which otherwise as a e excise woul not appv 10 it.
 = According to last years return, ther
 were 257.515 incomes subject to tn Il federal income tax. They were divido
 as follows:
 '1 s1.OOO0 0OO and more, 60; $5ooooo { d SI. .o0O. .o00 114: S40o0o0 to oo,o00. 6G
 $500. Doo to 1o0o10 147; $25oo0o = S3oO. ooo. 13o: $ZoO,oOo to $25o, 2$> a $150. .ooo to S200,O0o, 406; S10oooO H s15G.0Oo. 1,1S9; $75,Oo0 to S10o,o0 8 .5Jo: 5jo.0oo, to $75,o00. S,66O; S40,oC 4 to $5oo0o. 3.1S5; $3o0O0 to 54O,oO
 G.o1S: $25,Ooo to $3oO0O 5,4S3; 5000
 to $25.oOO S.672. S15,oOO to s2O,OOo, l5 B 790: Sl0.00o to $15.Oo0. 34141; $5,000 & S1c.Go0. 12G448: $4,oo0 to 5000, 6 D 525: S3 oO0 to $f.000. S2.754