San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-02-06
THE DINKLE BILL

First reports concerning the introduce
ton of state income tax bills in the Texas
Legislature were very brief They stated
merely that the subcommittee OF the
committee on revenue and taxation had
decided to accept the Dinkle bill as
basis for its recommendations. Since
then copies Of the Dinkle bill have been
distributed-and one has only to glance
through its provisions to confirm his
worst fears. The only light of hope Is
shed by the possibility that the measure
is unconstitutional-a possibility that be-
comes probability when two of the pro-
visions are studied.
1t might be called super-net income
tax bill. After one has paid his federal
! income tax, which is computed on a net
| basis, the state would step in, il the Hon.
Mr.. Dinkle had his way, and make an
other computation on the amount remain
ing or that might remain. This remain
! ing sum would be the net income from
the states standpoint
Briefly, the simplest provisions of the
measure are that all net incomes OF in
dividua1s, firms, copartnerships, corpora
! tons, Joint stock companies and aSsocia-
tons, with certain specified exceptions,
shall be taxed on an ascending rate scale,
ranging from per cent on the first $1,000
or any part thereof to 6 per cent on all
amounts in excess of $4,000 year; and
that the exemption for individuals shall
be $500, and for husband and wife $1,000
1t is deplorablc enough, one might say,
!: that there should be levied any state in
come tax at all, on top of all the other
taxes with which the people are burdened
| But to realize just how vicious a law
OF this kind can be, one may have tc
r examine some of the features OF The
: Dinkle bill For example, among the de
auctions which the taxpayer may make
: from his gross income are payment
made within the year for wages for EN-
Y ployes and salaries of officers, if rea
= sonable in amount provided, there be re
5 ported the name, address, and amount pal
5 each such employee or officer"
i In other words, the state would dictat
t the salaries which any firm should pay
r state officials would be authorized TO de
eide whether any salary was reasonable
within the meaning of the law.
Allowable as a deduction also is iii
lCiCSl pau NiNllIil IllC NNdl vi N-Ni'N'i'
= Indebtedness; provided, the debtor repor
e the amount so paid the form OF the ii
Il debtedness. together with the name an
n address of the CREDITOR
', Thus would every citizens mo
II intimate business affairs and relations
g made matters OF official record.
at No, not every every citizens. The i
E. come OF state and of national banks wou
be exempt from taxation under the la
e, proposed by Dinkle.
ID 1t is this feature, though, that cas-
id doubt upon the measures constitution;
lie ity. To tax other money-making ente
II prises. and exempt banks, would be
X practice rank discrimination.
st Another feature that may vitiate I
r legality OF the bill is the provision I'll
E. the law shall go into effect as of Janua
er, l, 1923. Whatever the technicalities m
cs be, certain it is that for practical purpos
es this provision would place the law in
&c. cX post facto category, against which
lid constitution specifically promises prot
IN ton.
w TO cap the climax, the Dinkle bill
mt clarcs the existence of an "emergenc
Ar What is the emergency: Simply that
OF state needs the money''-admittcdly
oh It needs the money, SAYS the Dinklc !
a for educational purposes. Judging tr
Il a.. / --Sflar4p1 Inv 1