Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-03-06
MISREPRESENTATION FROM
SANTA FE.

The Albuquerque Morning Jour
nal, a leading daily newspaper OF
the state, is not only conducting an
editorial campaign to prove that
the present income tax law is UNI
constitutional. but against the pas
sage of any measure which will tax
the profits of corporations.-Santa
Fe New Mexican.
The Journal did not assert or
seek to prove the present law OBJ
1ectionable or unconstitutional until
Governor Larrazolo had pointed
out its illegality in a message to
the legislature. Then a study was
made OF the point raised by the
governor and the paper, convinced
that he was sound in his view,
backed his declaration that there
should be a remedy, but did not
suggest q method or know how the
executive proposed to make an i'm
provement.
When the governor had the old
act repealed, and offered a new
one to the legislature. the Journal
made absolutely no criticism of the
substitute act, editorially or
through a legislative or other cor
respondent. Nor did the paper
analyze or object to the proposed
new bill. The action Of the legis-
lature in rejecting it indicated that
IT was not acceptable to the rep
resentatives from the various coun-
ties. But as the act went to the
discard and could have no efefct,
this paper has never considered it
worth while to study its provisions,
Its merits and dement's, the latter
tof which seem TO have been suffi-
tcient to cause demise of the meas
lure though it had the executive
support
After the act was rejected, the
journal considered the repeal of
Sthe old law by decisive majorities
in the two houses, at the suggestion
of the governor as final, as the
anticipated revenue from such act
for the year 1919 was not COM
puted at all in the budget made
UP for the disposition of the taxes
OF 1919; and was surprised by the
veto of the governor to reinstatt
the act for the stated purpose OF
securing a court decision upon its
unconstitutionality, as nobody was
disputing the assertion of the ex.
ecutive, that the law was unconsti.
tutional discriminating against
New Mexico business and corpora.
tons, in favor of outside interests
The paper then published an analy.
sis of the questions involved, as
seen by attorneys, including the
lawyer governor.
But the New Mexican is entirely
wrong in saying that the Journal is
conducting a campaign against any
measure which will prevent corpo.
rations from being taxed on then
profits. II is right that all individ.
nais and interests who make profit,
be taxed fairly, If any be taxed.
The Journal believes that an in,
come tax, federal and state, or
profits, or net income, is a fail
way to raise revenue, if assessed
with even Justice to all individuals
and interests. There is doubt
whether excessive tax upon large
incomes of persons or corporations
aecomplishes its purpose in fulI
measure. because if too much BIZ
attempted the parties feeling hurt
evade or find way to recoup bN
advancing prices upon product.
from which profits are derived.
If an income tax law he retained
or enacted for revenue which a leg.
isiature decides is needed, and III,
measure be right and fair to al
concerned, the Journal will no
object. This paper has heretofore
endorsed income tax. federal: mt
the state act before its fault wa,
shown by the chief executive am
acknowledged by the legislatiy,
body after he convinced the legis
lature, was not criticised by tn,
Journal.
income tax legislation has be
come SO generally accepted a
proper in principle that not 70
years has the Journal heard an
objection to the practice of it b
nation or state, from any persor
personally or the representative O
any interest. But determinations
Inequalities, always defeat a meas
.hre' Just as in the cases of tw
states which the United States su
preme court decided adversely thi
week.