Ka Hoku o Hawaii, Volume XXXIII, Number 48, 29 March 1939 — Federal Workers Can Be Taxed, Says U.S. Supreme Court [ARTICLE]

Federal Workers Can Be Taxed, Says U.S. Supreme Court

Acoording to reports ,from Washiugton, the supreme court on Monday ai>proved part of President Roosevelt*s tax hioome on eaiployes of a federal agency and said thrtt the federal government ean tax stale employes. Tlie dedsion was based ou attempts of Ttah and >"ew York fo tax federsil inoome? of omployes.

The cowrt overrulpfJ preysoui? tleoisions holdjng that the federal hiul state govertiments could not tax "means an<J instrumentalt{tes v of tlie other. Sen. Prent!ss 51. Brown, of "Mtehlpan, senate ftnance committ«v mun, e»tiuii\teil tl»at 2,000,000 stato aiul inunUipal pmployott recelv!ng $f!,000,000,000 annually woul.a be subjeet to federal ineome taxes of $16.000.000. He estlmated that 1,200,000 fe<3eral employes reeeiving $2,000,000,000 in salarīes will be subject to state ineome taxes at their varloas rates.