Evening star., 1922-10-29

effect the same as has been favorably
reported from that committee. Sub
sequently hearings were held on these
and other resolutions on the same
subject. A majority of the committee
favored such legislation and "a sub
committee working with Treasury ex-
perts. both fiscal and legal, and with
the legislative drafting service per
fected the form of the resolution. TINS
has been agreed to and recommended
by the Treasury Department.
Various tax associations and tax
experts have persistently urged the
necessity for such an amendment tc
the Constitution and are pushing roi
its speedy adoption. including s9cf
associations as: The National TAX
Association. composed of repTe,e;n.a,, Ts.;naa,
tives from every state: the Nationa
Association of Real Estate Boards
the United States Chamber of Com
merce, the American Farm Bureau
Federation, the American Economic
Association. the Investment as,ks Bankers IS
Bankers' Association, associations rep
resenting the public utilities business
the New York State Tax Conference
the Peoples Reconstruction League and
the Ohio Tax Association.
1t is pointed out that the United
States is the only one Of the great ma
tions that permits such condition to
exist.
Objections to the System.
The ways and means committee
found that the present system should
be condemned for eight particular rea-
sons:
~ A large portion Of property es-
capes taxation, thereby causing grea,
loss Of revenue;
(2) 1t violates the ability principle OF
taxation and unfairly discriminates be-
tween taxpayers;
(3) It impedes private financing;
(4) 1t discourages investment In new
enterprises;
{5) 1t encourages extravagances OF
governmental agencies;
(6) 1t grants a private subsidy to GER
tain interests;
90 BY Withdrawing money from pri-
vate enterprises 1t increases the rate OF
interest required for all enterprises not
carried on by the government and there
by adds to the cost Of living;
(8) It creates social unrest.
Constitution Ambiguous.
The ways and means committee and
all Of the prominent authorities on
taxation are agreed that the only
QTACllCAA ISAh0uy 10 Wy COASSASNSASAA~1
amendment, as is proposed.
Although on its face the income taz
amendment to the Constitution
Article 1S. seems to give the Federal
government full power to tax any
and all incomes when it says, 1.-THE
Congress shall have power to lay and
collect taxes on incomes from what
ever source derived" the Supreme
Court in the case of Evans VS.. Gore
253 U. s., says otherwise. This par.
ticular decision is believed to be final
In forbidding, the federal governmen,
to tax incomes derived from state OF
municipal tax-e1empt securities. l!
ruled that the income tax amendmen,
didn't change the existing law-that
| it did not give the right to tax In.
comes from securities that could moi
| otherwise be taxed. It reverted back
| to the old decisions Of the court. run
ming back to the time of Chief Justice
| Marshall, to aettle disputes over thu
| division of powers between the fed
eral and state governments, when
| the cry was raised that the power te
| tax Is the power to destroy"
So the President, the ways ant
means committee, Treasury onciali
and the national associations urgtne
| this legislation base their program
J on the contention that the Constitu