The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-08
PRESIDENT To PAY
TAX ON HIS INCOME
Revenue Bill to Include Many
Officials Who Are Now
Exempt From Taxation.
QUESTION or I.EGAIITy
May Permit Payment in In.
stallments if Proposed Plan
of Committee Is Adopt
ed by Congress.
QUESTION or J.EGAIITY

Washington, Aug. THE presi
dent of the United States will have te
pay an income tax on his salary oil
SIS 900 II an amendment to the reve.
nue. hill adopted by the ways and
means committee today should be.
come part oAthe law. The tax would
amount to something over SEA 900 un,
der the new rates agreed upon by thu
committee.
Justices of the supreme court and
all other members OF the judiciary
and all other officials. federal. state
county and municipal. would be in
ciNded in the rate paying class. They
arc exempt Under the present law
There is st~ry around the com.
mittee rooms TO the effect that Presi,
come tax, although specifically ex-
empted by the law.
May Be Unconstitutional.
The committee is not at all sure
that the proposal TO collect income
officials named in the amendment,
would be constitutional. In fact. the
committee took the position, in agree.
ing to the amendment. that the ques
ton should be passed up to the courts
for an authoritative decision.
In 1859. Attorney-General Hoar
wrcfe an opinion to the effect that a
tax on the salary of any Of the ON.
Gals in question amounted to a ''di-
minuation' OF that salary, and, there
forefore, the proposal to levy such a
tax was unconstitutional. The com.
mittee. after a long discussion Of the
question today, reached the opinion
that an income tax was not diminu-
ton of the salary and that 1t is not
prohibited by the constitution. =
Several members Of the COMMITTEES
took decided stand in favor Of max
ing the income tax apply to tho salary
OF these officials. includinS. the presi-
dent. They cited In support Of their
argument the words OF the income
tax amendment itself, which reads
that the tax should be levied on all
incomes from whatever source de-
rived"
Tax Interest on Bonds.
The committee decided also to
change the law 90 that the interest on
state. county and municipal bonds
may be taxed. The tax win not ap-
ply to bonds issued for the refun ;Ifg
OF existing Indebtedness.
Some changes IN tho deferred pay.
mont plan were announced BY Chair
man Kitchin today. The new bill
win contain section to permit ifdi-
vtduals and correspondents to pay
their income tax ia inotAllmenta, the
plan being as -follows: One third OF
the total amount to be paid when the
return 10 made. one-third within three
months and the balance within III
months Of the date Of the return. Per-
sons who transmit the full amount 81
cash with their incornt tar return will
be entitled to q deduction equal "a
one and one-ninth per cent Of the to-
tai amount Of the tax.
The COMMITTEES adopted an amend
ment to the Inheritance tax section to
provide for the inclusion Of the pro-
ceeds OF all life Insurance policies IN
excess OF s4o.0eo AZ part OF the gruss
estate, The purpoae OF this amend
msnt, a$.explained BY Mr.. Kttchin. is
n prevent wealthy peraons frotA put
tNnE thAar MunSy into HE JnparAnce
ellplee n order y eecAse ~ lnlIors