Year: 1878

the House of Representatives having deter


mined by vote of to to report bill in


favor of reviving the income tax, repre-


sentative of the Commercial visited uum-


Der of financial and mercantile houses in
order to ascertain the views of their differ


ent representatives as to the working of


the proposed bill, and how it was likely to


affect the various interests. The measure


IS generally regarded as very oppressive


one, and is expected, no matter how it be


framed, to prove annoying. and consequent
ly to become obnoxious.


THE MERCHANTS


i generally regard the bill as the one intend
q ed to destroy the little enterprise that ex-
lists at the present time. They contend that
the law cannot be otherwise than inquisi-


torial; that under any pretence the Off
GERS of the Governmen might force their


way into a business house, overhaul its


books and pry into it's business the result
of which could be placed on record for the
iuquisltiYe inspection of rival firm. No
mans business would be sacred, unless the


Government would be content with the re-


turn made by the representatives of the
firm. Then, if that was accepted, how
many firms would there be who would give
correct returns, if by falsifying they could
evade the tax, 1t would familiarize per


sons with perjury, and


DESTROY CONFIDENCE.


1t was contended also that the dishonest
firms which could blind assessors would
escape portion Of the tax, which would
have to be imposed on those who made hon
est return. 1t was acknowledged to be
necessary for the Government to have a
revenue, but in the matter of taxation such
imposts would be made as little annoying
| as possible. An income tax would be ex-
pressly annoying; for even to give honest
returns would entail labor on business
men, and often place them at the mercy of
subordiuates, who, in order to obtain re-
ward, might turn informers with or with
out just cause. ANY information laid would
be considered good reason for Govern
mental inspection, leading to an inter-
ruption of business, even if no other un-
pleasant results. Tt is believed that the
passage of such bill would be resisted by
all the mercantile community, and 1t was
considered doubtful whether or not the
collection of the tax would pay expenses.
THE BANKERS


had not seen the bill, and did not know
how it would affect the business of such
institutions. 1t was supposed there to on
ly affect personal incomes, and by some it
was thought to be unconstitutional, on tie
ground that Section TX. of Article |. of the
Constitution of the United States prohlb-
tied it in these words: "No capltatien or
other direct tax shall be laid, unless in pro-
portion TO the census or enumeration nsre-
inbefore directed to be taken" This tax
was on certain individuals, and the census
had nothing to do with it. It was acqui-
esced in as a war measure, when every citi-
zen felt 1t to be his duty to support the
Government, and recent disclosures have
shown how wealthy men sought to and did
evade its payment. No certain reason now
exists for it's enforcement, and it certainly
would be collected with difficulty. It was
shown by the last income measure, when in
force, that


IT WAS GROSSLY UNJUST
in it's provisions. A farmer who had a
large family would produce from his farm
enough to support that family, and on this
production as he had eaten it, he would
to pay no income tax, although it was vir-
tually part of his income. A salaried Of
fetal would have to pay tax on his in
come, although it might require all he
earned to feed his family, and at the end
of the year he would have nothing left.
A person living in house was allowed to
deduct his rent, although paying rent in
directly, while person boarding his fam
would not be allowed to deduct dollar. |
10 these and numerous other ways the tax
would necessarily be an unjust one, and
would be imposed peremptorily on persons
having a fixed income, while those who
had much larger floating revenue might |
almost be able to escape its provisions. |
The wealthy would, to great extent, es-
cape the tax, and the middle class, which
had the greatest difficulty to maintain re-
spectability, would have to pay 1t.


ATTHE INSURANCE OFFICES
it was stated that the tax would be very
annoying if imposed on the business. It |
would be very unpopular and expensive to
collect, and in many cases would be col
lected several times over. In former years |
the tax was imposed on the gross premi-
ums, and no allowance was made for rein |
suring. Thus, if the gross premiums Of
one company, says A, should be $500, 900 in
one year, the tax would be imposed on that |
sum. But one-half of it might be insured
on an open policy with B, and as the sum
would he part of BIS gross premiums, the
tax on 1920, would be again collected.
B might reinsure 800, 200 worth with
and the tax again collected, and SO On
the end of the alphabet, each reinsurance
on the same policy being taxed. The in
snrance officers thought that in the end the
amount received by the government would
not be mole than enough to pay the vast
army of


COLLECTORS AND ASSESSORS
which would have to be employed, and
who, to show their zeal or something else,
would make the collection the most annoy |
ing that could be. The only reason the |
insurance officials could see for the passage |
of the measure would be to give employ
ment to number of hungry politicians,
who would have no knowledge of business,
and would retard its prosecution in every |
imaginable way. Those whom the tax was
intended to reach would escape its provis- |
ions if they were only able to blind the as
SCISSORS, while those who should be pro- I
tected as much as possible from imposts-
being the lie and moving energy of the
country-would be compelled to suffer all |
the annoyances which such a measure |
would infliet.


newly married couple at Roseburg, Ore |
gon, were disturbed on the following morn
ing by the appearance at their chamber |


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