The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-25

against the enactment.
The effect of the opinion on Congress
was impressive. Many Senators and
Representatives ventured the opinion
that the decision giving such sweeping
judicial sanction to this form Of taxation
would Increase the popular demand for
raising rates OF big incomes. II was
predicted that tho wealth OF the country
will be called upon to bear the burden
of the national defence programme.
With tho growing unpopularity Of the
various forms of taxation suggested by
the President to meet the emand for
additional revenues leaders in Congress
seem to be turning toward the income
tax as tho least Objectionable method Of
obtaining the needed funds.
TO Increase the Tax.
Representative HUI Of Tennessee, au-
thor of the income lax provision OF the
Simmons-Underwood law under review,
promptly admitted that the Ways and
Means Committee would begin at once
the consideration of plans for increasing
the income tax. The present revenue
from tho tax on incomes is about
$50. O0O. 600.
The stamp taxes. already under fire by
Democrats in Congress lcd by Speaker
Clark. will probably be repealed and the
various suggestions for special excise
taxes To meet the demand for more rev.
enue may be cast aside. Instead Of
these taxes the incomes of the wealthy
will he levied upon.
Increases of from one-third to onc-half
were predicted in the surtaNes ON in
comes OF $50, 900 and upward. The rich
will not only he taxed. They will have
company. for II Is proposed to lower the
exemption. The exemption ~, the mar
ried man. now $4,000. will he reduced
another $1,000 AT least. The single man,
now Exempt from taxes on his income up
to $4,000. will pay on all above $1,000. II
the leaders do hat they arc talking OF
doing.
by the decision the court has put
into operation "A new system of taxation
that, will stand as ~ revenue producer
second only to the customs law.
The case decided was that raised by
Frank u. B~rushater. n stakeholder Of
the tnion Pacific Railroad Company,
who sought an injunction to prevent
directors ~ the company from paying
the tax. alleging hat 1t was an UNI
constitutional exercise OF the taxing
power.
Five suits in All were brought 10
test the validity Of the act. All of these
were decided in favor of the Government
In the Federal courts below. Brushaber's
ease WAS begun in the Federal court
for tho southern District Of New York.
Ii presented only 4 single phase Of
the attack on the Coustitutionality Of
the law. but in the course Of the argu-
ment all tn. points urged against the
form of taxation were brought out.
chief Justice White enumerated these
and dismissed them ti a. unwdrran;ed
one Of the points raised was that The
law was %ropuguaut a. class legislation
because D. exempted certain labor. agri-
cultural ana horticultural organizations.
rms objection Wa r~"l'"llcd by the chief
Justice on tho authority "t the doc
trim" lald down I'm IN" corporation taA
'tS'
ON th,, point iho chief Justice said
i was q 'nnmpu error Of those at
lacking th" law tina; they sought TO
max" % appear that Congress had found
a rrw FORM r TAXATION amt had sought
Fl" exercise q ,ow power "" said II
Htd hccn urged that congress had
Amendment a rcw power. The power
ii.n.'''I Wv ,''' l.'" 'N'S''i since
.N, - ' uIu,"' avn
,rh' r.u,tit,n -
r.n 800 ,h., - ",,"'I np,' w
,arir hul ~ rorJ',r -, "
~, ,.. ,,n
passed in October. 1913. and affected in.
COMES dccruing after March OF The
same ycar-thc Chief Justice declared
had no standing.
Congress had power. the cour, held, &c
impose the tax after March | that wear
and the law might be retroactive to tina
date. Senator Root made strong argu.
mcnt In the Senate To show that the
Jaw was unconstitutional because II
could not tax incomes accrulng before
the bill became "a law.
Ihat argument started a discussion IL
'ohgress as to when the subject matter
OF the TAX became capltal and at wha'
Io,ht II Cedseh 10 ne income. As tht
pm was Hrs' drawn IL proposed to tax
.u'''"'S "'ciuihs ai'ef january ] OF
10 49, IN I'nec''"n 'hc members
W ''"S''oS n''"l'' maj 'neS 'ould no
~ i'' "''"put oiieice asalns'
~ .'',u.'IH anu inc pllI wac
.h""e'r =" ~, nv ua'e up 10 March
~" "" w." wv" p'o'eu " ne sate
Lie, M O,,.,.
grouping a list or other objection.
brought out IN the several cases to tes'
the law. nut urged In every case as 6
OASIS oi the Chic
Justice stated them IN the following or
der