Congressional Record-Senate. 1957
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1910. CONGRESSIONAL RECORD-SENATE. 1957 &tl<?Ill, Ohio, for the Johnson and Curtis bill, the Aikens bill, SENATE. the Hamilton-Owen bill, the MeCumber-Tkrell bill, the Dil lingham bill, the Burkett bill, the Johnson bill, all tor legisla WEDNESDAY, February 16, 1910. tion to incul<!ate moral reforms in the Nation---to the Cominit Prayer by the Chaplain, "Rev. Ulysses G. B. Pier<!e, D. D. tee on Alcoholic Liquor Tra.ffic. The Journal of yesterday's proceedings was read and approved. By Mr. LINDBERGH: Petition of citizens of Philbrook and Browerville, Minn.., against S. 404 and H. l. Res. 17, relative to INCOME TAX. Sunday <Observance in the District of Columbia-to the Com Mr. BROWN. I .hold in my hand a message to the legislature mittee on the District of Columbia. of New Jersey by the governor of that State on the subj-ect By Mr. LINDSAY; Pe1ition of Searle Manufacturing Com of the proposed .sixteenth amendment to the Constitution. I ask pany, of Troy, N~ Y., in favor Qf a r€.pea.l of the eorporation to have it printed in the REco:Jm -and printed as a document. tax clause in the Payne tariff bill-to the Committee on Ways (S. Doc. No. 365.) and Means. The VICE-PRESIDENT. Is there objection to the request .Also, petition of New York Typographical Union, No. 6, In of the Senator from Nebraska 1 The Chair hears none, and the ternational Typographical Union, against increase of postal order Is entered. rate on periodicals-to the Committee on the Post-Office and Th-e message follows : Post-Roads. l\IESSAGE OF THE GOVERNOR OF NEW J"ERSEY RELATIVE TO PROPOSED SIX• By Mr. LOUD: Petition of Richland Grange, No. 1.094., of TEENTR A.MEND~T TO THE CONSTITUT-101'i OF THE UNITED STATES. Prescott, Mich., favoring parcels -post and against abolishing the TRENTON, N. J., Februa1·11 7, 1910. rural free delivery-to the Committee on the Post-01fice and To the ·legislature: On the 26th <lay of <July, 1909, the Secretary of State of the United Post-Ro:ads. States officially transmitted to me as governor of the State the pro Al o, petition of M. J'. Barrett and others, of Onaway, Mich., posed sixteenth amendment to the Constitution of the United States against the Johnston Sunday bill for the District of Oolumbia pa-ssed by the Congress and directed to be submitted to the legislatures of the several States, as provided by the Constitution of the United to the Committee ·on the District -of Columbia. States. Also, -petition of E. Byington and others, of Prescott, Mich., Copies of said papers transmitted are hereto attached. against increase ·of postage on second and third class mail mat The J>roposed amendment, If adopted by the requisite number of States, will confer npon Congress the power to levy a direct tax, in ter and for a general par<:!els post-to the Committee on the the nature of an income tax, upon the property of persons in the several Post-Offi.ee and Post-Roads. States without regard to the inhibition now in the Federal Constitution By Mr. McCALL : Petition of Broadway Congregational against laying any -direct tax " unless in proportion to the census of enumeration,., by that instrument directed to be taken. Church, of Somerville, Mass., for the Bur-kett-Sims bill forbid The Supreme -Court of the United States sustained in principle the ding interstate transmission of race-gambling bets-to the Com laying of an income tax in two cases, namely : Hylton v. United States mittee -0n the Judiciary. (3 Dall., 171) and Springer v. United States (102 U. S., 586). But 1n 1894 that court, 1n Pollock v. Farmers' Loan and Trust Com· Also, petition of Broadway Congregational Church, of Somer pany (157 U. S., 429), reversed these former decisions and declared ville, Mass., for the Mccumber-Tirrell bill against liquor selling the income tax imposed nnder the act of Congress in that case uncon on property of the United States-to the Committee on Alco stitutional, because the tu.x was not in proportion to the census ·ol." enumeration directed to be taken under the Federal Constitution. The holic Liquor Traffic. effect of this last d.ecision is to practically destroy the laying of any ta:x: Also, petition ot Broadway Congregational Church, of Somer wnatever upon income unless based upon some principle ot ca.pllati.on. ville, Mass., favoring the Johnson bill preventing liquor -selling A tax laid upon any such basis as that would be of little if any value, and would fail to reach persons with large incomes, who should in Haw.ail-to the Committee on Insular Affairs. be the ones to bear the burden of such taxation. By Mr. :l\fALBY: Paper to accompany bill for relief of Wil An income tax is the most 3ust :and equitable tax that can be levied. · liam M. Cordwell-to the Committee on Pensions. It imposes the <CKactiorui of government utyon the citizen in proportion to Jris ability to bear it, and upon the basis of the wealth which under Also, paper to accompany bill for relief of Joseph H. Mays the laws of the eountry he has been able to accumulate. " Men should to the Committee on Pensions. contribute to the needs of the state as God has 1n·ospered them." . By .Mr. MAGUIRE of Nebraska: Petition of Nebraska Dairy It is eYident that the burden of general t-axes is not proportionately borne by all llpon whom the burden rests. The citizen of moderate men's Association, for strengthening the pure-food laws and holdings, whether real or personal, usually does not escape, or .attempt against repeal of the oleomargarine tax-to the Committee on to escape, the prompt discharge of this obligation. The property of Agriculture. whicb he is J>ossessed, by reason of its very meagerness, is easily found by the assessor, and when the tax is levied it is satisfied. This can not Also, petition of Nebraska Dairymen~s Association, for House be said, however, of those who nre essentially rich and whose holdings bill 15422, .for agricUltural extension-to the Committee on are large. It has been stated, with some semblance of certainty, that Agriculture. over 80 per cent of all the vested wealth of this country is owned and controlled by 3,000 estates, corporations, and individuals. It is obvi By Mr. MILLINGTON: Petition of Local Union ..N<>. 1016, of ous that 80 per cent of the annual taxes levied is not borne by the Rome, N. Y., United Brotherhood of Carpenters and Joiners, for group just mentioned. It may be that this estimate is inaccurate. The i·eenactment of House bill 15441, for a government -eight-hour casual observer, however, is convinced that the burden of taxpaying is borne very largely, and out of all due proportion~ by the citizens of mod· day by contract or subcontract-to the Committee -011 the Judi erate means. ciary. The taxes laid upon real estate are out o! all proportion to its relative value to .a.11 the other property owned by our citizens. This Also, petition from various residents .of Vienna, N. Y.~ pro results in the man with the small home bearing his full share of tax testing against the passage of Senate bill 404, providing for the exactions, while the ma.n of many times as great wealth escapes a observance of Sunday as .a day of rest in the District of Colum large -share of just taxation. The taxation of personal property is limited because of the -difficulty to -discover it, while real estate, which bia, and against the passage of House joint resolution il7, pro is always discoverable, is fully taxed. posing ft certain amendment to the Constitution-to the Com An income tax is a tax which is sure to reach all classes of property, mittee on the District of Columbia. real and personal. The United States should possess the unquestioned power to tax By Mr. .MOORE of Pennsylvania: Petitions of the German incomes. 1t may not be necessary to use the power, but if emergency .American Hosiery Company and the Smaltz-Goodwin Company~ should arise which requires it, the right to tax should exist. of Philadelphia, against corporation~tax law-to the Committee Criticism of the :amendment herewith transmitted is made upon the ground that under it the income upon state or municipal securities on Ways and Means. might be taxed. Wlly this should not be I am quite unable to -see. By Mr. MORGAN of :Missouri: Petition of Post N-0. 17~ Grand The argument made is that a tax upon incom~s -from this source might Army of the Republic, of Cameron, Mo., against display of any (1) decrease the value of such securities in the market; (2) that Con gress might, through such a tax, impair the power .of the States. insignia recognized by the confederacy in the confederate ceme Neither of these suggestions seem to me to have force. tery in Springfie1d, l\Io., in ease it is taken over by the Gov Suppose 1 per cent of tax were to be levied upon incomes. Under ernment-to the Committee on Military Affairs. such a tax the holder o.f a $1,000 4 per cent state or municipal bond would pay an income tax on $40 per year, which would a.mount to 4() .Also, petition of F. M. Sponable, W. '.ffi. Robbins, and 15 other cents per annum. 'Citizens of Alba; Mo., against postal savings-bank law-to If the patriotism of our citizens and the interest of our financial in the Committee -on Banking and Currency.