Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-10-10
H0LDSSTATETAX
UNCONSTITUTIONAL
Senator Kellogg Denounces
Provision in House Draft of
New Revenue Bill.
DANGEROUS EXPERIMENT.

Taxation Of salaries OF state officials
and of incomes derived from interest
on state and municipal bonds. as pro-
vided in the House draft of the new
IS, 600, 10000 900 revenue bill. was at
tackled as unconstitutional today by
Senator Kellogg of Minnesota. repub-
lican.
The war powers of Congress do not
extend so far as to suspend constttu-
tional limitations. Senator Kellogg
said today, taking issue with Senator
Knox of Pennsylvania. who in re-
cent speech upheld 1.-THE right of the
federal government to tax state in
strumentalities.
IT do not believe that the necessities
of the war justify the government
laying it's hand upon the sovereignty
of the states" Mr.. Kellogg said. The
continuance of our dual form of gov
eminent the stability, independence
and effectiveness OF our state ana tnu-
nicipal governments are OF the great
est importance to the peace and nap
pinss of the nation and the perpetulty
of our institutions.
Terms It Dangerous Experiment.
II do not believe there is any such
exigency in the federal government
to require this doubtful and dam
gerous experiment. From the state
ments of the Secretary of the Treas
ury but small revenue will be. re-
ceived. The tax is not imposed on
the incomes of bonds heretofore is
sued. but only upon the incomes from
bonds hereafter to be issued
I'm time of war. when of necessity
all powers of the federal government
are marshaled, let us not, under the
guise of war, undertake to change the
fundamental principles under wh1cn
the states and federal government
maintain their separate existence.
The inhibition of the federal con-
stitution does not arise from any ex-
pressed Limitation, Senator KELLOGG
said. but the want of power arises
from the nature of the sovereignty OF
the state governments.
Taxes on Motors Reduced.
The 10 per cent taxes fixed by the
House on passenger automobiles and
motor cycles were cut in half yesteT-
day by the committee. In reducing
the tax to S per cent. the committee
fixed the same impost on such vehicles
The 10 per cent tax placed by the
House on automobile tires and &C
cessories also was reduced to per
cent.
House taxes of 10 per cent on sport
| ing goods, cameras and Photographic
supplies were accepted. The tax on
! chewing gum. made per cent by the
| House, was reduced to per cent. The
| House levy of 10 per cent on CANDY
was approved
The House provisions levying taxes
| on firearms and ammunition when
! sold other than to the government
| were accepted. as was the provision
. levying a 10 per cent tax on yachts
| and other pleasure boats selling for
! more than SIS.
Imposts on Trunks Lowered.
The House section which would levy
| imposts on trunks costing more than
$50 was amended so as to fix this
! amount at SIS, while for valises and
i travelling bags SIS was made the
i minimum instead of So. The COM
| mittee also agreed to the taxing OF
| purses and handbags costing more
! than SIS instead of $3.50. as fixed by
| the House.
All House provisions relative to men
! and women's wearing apparel were
accepted unchanged. Under this
| schedule men, women and boys Will
| be permitted to pay $50 for suits or
| overcoats without being subject to
| tax, while women'S dresses costing
less than $40 will be exempted
! The House proposal to tax womens
hats costing more than S15 was ac-
cepted but the provision placing the
| limitation of SIS for mems and boYs'
| hats and 81 for caps was revised SO as
to make Sc for the former and 81 for
the latter