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AUGUST 20, 10 OS
The Commoner.
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3
Organize for the Income Tax
Unquestionably a majority of the democratic
and republican parties favor the income tax.
If proof on this point were necessary it is found
in tho fact that a republican congress has beon
forced by public sentiment to submit an income
tax amendment. It is no secret, however, that
tho republican leaders who reluctantly yielded
to this necessity expect that the proposed amend
ment will fail by reason of not having a suffi
cient number of states.
Tho clause in the federal constitution provid
ing for the method of amendment is as follows:
"The congress, whenever two-thirds of both
houses shall deem it necessary, shall propose
amendments to this constitution or, on tho ap
plication of the legislatures of two thirds of
the several states, shall call a convention for
proposing amendments, which In either case,
shall be valid to all intents and purposes, as
part of this, constitution, when ratified by the
legislatures of three-fourths of the several states,
or by conventions of three-fourths thereof, aB
tho one or the other mode of ratification may be
proposed by the congress; provided, that no
amendment which may be made prior to the
year one thousand eight hundred and eight shall
in any manner affect the first and fourth clauses
in the ninth section of the first article; and
that no state, without its consent, shall be de
prived of its equal suffrage in tho senate."
The fight for the income tax has only begun.
The subject should, therefore, be studied by
every citizen. It would be well if, in every pre
cinct in the United States, men and women
should congregate for tho purpose of informing
themselves upon this important topic.
THE PROGRESS OP THE INCOME TAX
AMENDMENT
The income tax amendment has thus far been.
before two state legislatures. Georgia has con
sidered it in regular session and Alabama in a
short special session. In Alabama special favor
was shown the amendment by both houses, and
It was, hurried along the course to passage. In
Georgia the amendment was not so fortunate.
It has not been defeated, but its consideration
has been blocked in the senate as the result of
a vigorous lobby against it. Probably the lobby
contented itself with blocking the measure be
cause it knew itself too weak to defeat it. That
is the way such situations are usually to bo in
terpreted when lobbies are busily at work. Even
if further consideration of the amendment
should be postponed in Georgia till the next
session of the legislature, that would come be
fore the majority of the states have had a
chance to act.
Barring some unexpected development, Illinois
will be the next state to pass upon the amend
ment. That is on the assumption that a special
session will meet in the fall. No doubt tho
anti-amendment lobby will spend more effort
and more money to defeat the amendment in
Illinois than in any other state. The fact that
Illinois has the worst boss-ridden legislature in
tho west will give the lobbyists hope of success,
while the further fact that Illinois will be taken
by easterners to bo a typical western state in
stead of a most exceptional one so far as Its
legislature is concerned will make the lobby
ists especially Interested in the example it sets.
It happens that the group of states to vote
next winter is composed almost entirely of New
England and adjoining eastern states which have
annual sessions of their legislatures. Most of
the states have biennial sessions which meet in
the odd-numbered years, and so will not vote
till 1911. If all the mechanism had been set
for the purpose, the disadvantages the amend
ment will be under for passage could not havo
been greater. That is no reason for fearing its
failure, since" a tremendous strength in favor of
it exists among tho people in the west, and it
will go hard at re-election time with any legis
lature which stands out in opposition. If the
Illinois legislature should listen to its masters
instead of to its constituents that will probably
be the straw that breaks the camel's back. And
the part of the camel in this case will not be
played by the voters. Chicago Record-Herald
With powerful enemies, few friends and no lead
ers on its side, and with the session practically
at a close, there Is only one chance in a thou
sand for it to pass. Tho session will close on
Wednesday. Tho fight for tho lncomo tax rati
fication centers in tho sonato, not. having been
broached In tho house. Tho senato has still to
act upon tho general tax act and tho appropria
tion bill. In both instances thero will bo fights.
The senate asks more appropriations than woro
granted by tho house, and a fight Is browing
in tho senate over the near-boor section of tho '
general tax act. This leaves practically no time
for consideration of the Jackson resolution urg
ing the ratification of tho incomo tax. Tho op
position comes from friends of tho state incomo
tax, tho fight being led by Senator Burwoll. Ho
says it is his wish to save this revenue to the
states of tho union. In a way ho considers it
an invasion of stato rights. Ho argues that
should the national government got this tax
negroes might bo used in tho south for its col
lections. Senator Perry has declared that this
issue will become a political one, and that
its opponents in Georgia will go down in certain
dofeat. Up to date, however, thero has been
no political lineup, no party differences on the
measure. For instance, Perry and Burwell are
both strong Hoko Smith supporters. Tho gov
ernor has taken no stand in the matter. Perry
says the measure is being fought by lobbyists.
He refuses to give any names, and there is no
proof of such influence. If the income tax is
ever made an issue in Georgia' it will be passed,
is the general opinion. It will lose at this ses
sion through apathy and lack of time. It is be
lieved it will pass at tho next session.
GET TO WORK
Former Governor Bates answers tho objec
tion that an incomo tax would bo "Inquisito
rial" with the response that "eo are all taxes
upon personal property." He further declares
(in an intervlow printed in yesterday's Post)
that such objections as havo been made against
tho income tax as a principle "seem of Httlo
consequence compared to the benefits to bo
derivod."
Mr. Bates Is but one out of many of tho load
ers and advanced thinkers of the republican
party who have taken a stand which Indicates
that there will bo little, if any, organized op
position in this state to the adoption of tho in
come tax amendment. Tho action of Massa
chusetts undoubtedly will set tho pace for other
states, whether that decision be for or against
tho proposed amendment.
It will be well, therefore, oven thus early,
to scan the attitude of candidates for tho next
legislature upon the question of tho adoption
of this, the most equitable of all forms of tax
ation. It Is now, before the "machines" have clinched
their hold upon the organization of tho next
house and senate, that a distinct understanding
should bo obtained between voter and prospec
tive legislator, to the end that Massachusetts
may be enrolled among tho leaders in the move
ment which former Governor Bates describes
as "sound and equitable." Boston Post.
THE AMENDMENT IN GEORGIA
An Atlanta, Ga, dispatch to tho New York
World Says'.
Napoleon at Waterloo never faced a moro
forlorn hope than the: friends of the ratification
of the income tax by the Goorgia' state assembly.
JUSTICE BREWER AND THE TAX
Literary Digest: As though in order to pre
vent the apathy which the advocates of the in
come tax provision in tho tariff bill have said
is their chief fear, Justice Brewer of the United
States supremo court, by condemning the pro
posed amendment to the constitution, has made
tho discussion livelier than ever. In his much--quoted
Milwankee address Justice Brewer said:
"But now, after the hue and cry of a day,
we must hare tho privilege of Income taxes by
the government. Supposing that law passes, as
I presume it will, and congress sees fit to levy
incomo taxes on all tho income received from
substantial, direct personal property and real
estate, what will the states do in caso they need
large sums of money for their own revenue?
"The power to tax, as John Marshall said, in
the power to destroy. If once you give the
power to the nation to tax all tho Incomes, you
give them the power to tax states, not out of
their existence, but out of their vitality."
There are not many papers that give Justice
Brewer's statement their unqualified approval,
but the New York Times strongly endorses his
views In the following paragraphs:
"President Taft is putting into practical oper
ation Sccrotary Root's threat that tho national
government would exorcise tho powers which
tho states noglcctcd, and Justlco Browor dis
sents. Plainly tho taxpayers aro doubly bur
donod, or olso tho resources of the states are
minced If thoy waive tho incomo tax which the
nation takes. Corporations which might endure
either tax might bo oppressed by a doublo tax,
and thus tho nation could starvo to doath in
stitutions created by tho states. But, as Justice
Brewer says, to crlpplo a stato's resources is
to nssumo 'power to tax tho states, not out of
their existence, but out of their vitality.'
"Wo havo fallon too much into tho way of
passing bad laws and trusting to neglect of thorn
to remedy tho evils from thoir operation. Wo
havo boon told that tho Incomo tax will be
harmless while Taft is president, and ,wo aro
providing him with new and disputatious laws
to enforce, although ho has not as yet romodled
tho demonstrated inefficiency of administration
of existing laws which characterized his prede
cessor. It is tho things which ho has not done
which entitle him to tho greatest praise."
Yet tho Wall Streot Journal revlowlng Justice
Brewer's obiter dicta thus expresses its unquali
fied diasont:
"It would perhaps add to tho sanctity of the
law if our Judges made it a rulo to confino the
expression of their opinions strictly to tho bench.
It is apt to lower tho average man's respect for
judicial opinion when ho finds that tho Judge
off tho bench Is only an ordinary man, with an
avorago Bet of ideas, and even a human liability
to say things off-hand not always distinguished
for sound sense. Supremo Court Justlco Brew
er's decisions from tho bench aro always weighty
as coming from a sound constitutional lawyor.
It does not follow, however, that his prlvato
opinion on tho incomo tax carries any moro
weight than that of another man.
"It is true that Chief Justlco Marshall said
that tho power to tax was tho power to destroy.
Aro wo, therefore, to collect no taxes at all,
or aro we to be confined, as tho supreme court
confines the federal government now, to only
two ways of raising them! Thero aro many In
telligent Americans who would bo willing to
collect less revenue through tho customs house,
and thero are some who do not approve of tho
only alternative offered us. Because of what
Chief Justlco Marshall said, aro wo to bo limited
forever to tariff and excise?
"So stringently has tho federal government
beon restricted by tho suprorao court that tho
states havo gradually appropriated a largo num
ber of methods of taxation entirely suitablo for
federal use. Tho only method remaining unap
propriated by tho sovereign state Is tho income
tax. Justlco Brewer's anxiety for tho Interest
of tho states seemed a little bit forced. The
authorities he quotes could have had no real
idea of modern conditions and necessities.' Jus
tice Brewer himself talks of Mron-clads' under
tho impression that such vessels still exist, and
some of his other opinions might bo brought
down to date with advantage.
"Tho crux of tho matter Is that nobody likes
to pay taxes. Most of us aro willing to encour
ago public expenditure and oven public extrava
gance, but vo greet with Indignant horror any
attempt to collect the cost from ourselves. If
thero Is one tax in tho world which has proved
itself to bo fair, flexible, cheap to collect and
easy to adjust, it is the income tax. It is more
over sound in principle becauso public expense
are paid for out of income and not out of pri
vate capital, as thoy would be and are with In
heritance taxes.
"Justice Brewer does not want to pay income
,tax, and that is the meaning of his obiter dicta.
'A great number of people will sympathize with
him, but they must realizo that a condition of
excise and tariff exclusively, at the flat of the
supreme court of tho United States, deprives the
federal government of taxing facilities it should
enjoy."
The New York World, while expressing the
utmost respect for Justlco Brewer's fearlessness
and ability, confesses that it can not share his
misgivings, and takes tho opportunity thus to
express its preference for an incomo tax over a
tariff:
"Under the protective theory a system of tax
ation has been built up under which the national
government, either for itself, or for privileged
interests, taxes every ounco of meat that the
citizen eats, every spoonful of sugar that sweet
ens his coffee, every thread of wool that goee
into tho clothes he wears, every fiber of cotton
that makes up the stockings he buys for hit
children. It taxes him on his tobacco; it taxe
him on his beer. It taxes him on his necessities
and it taxes him on his luxuries. It taxes hlni
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