Press enter after choosing selection

Refunding The Direct Tax

Refunding The Direct Tax image
Parent Issue
Public Domain
OCR Text

Washington Citt, April 14.- Governor Fleming and Governor Wilson, of West Virginia, were at the department of ustice yesterday and made an appointment with Soücitor General ïaft for an argument as to whether West Virginia can legally be paid ber share of the direct tax. The hearing will take place in about three weeks and the collateral questions involved are of vastly more importance than the direct question at issue. First Comptroller Mathews has held up the paymeut to the stai,e of West Virginia of her share of the direct tax, on the ground that the state of Virginia, at the time that West Virginia becarne a state, owed the United States and still owes tlie United States more than $1,560,01)0 on Indian trust bonds. The History of the Matter. When West Virginia became a state, she agreed to pay her share of the indebtedness of Virginia, both state and na tional. When the direct tax was levied, West Virginia paid her share out of the state treasury. The state of Virginia paid her share by government agents collecting it from individuals, and by the terms of the direct tax law, which provides that the tax paid by individuáis eannot be withheld by the genera! government for the debt d'ue from a state, is theref ore entitled to a ref und of the amount collected. But in the case of West Virginia, whose direct tax was paid by the state, her share has been held up for her part of the original Virginia State debt to the general government. Has a l!'ii i-íiiíí ou tlie State Rebt. The question in all its pbases is likely to again be brought to public notice when Governors Fleming and Wilson make their arguments to show that the government has no power to withhold West Virginia's share of tbe direct tax for a debt owed by oíd Virginia. The decísíod on the matter will have by inference an important beariug as to West Virginia's share of indebteduess to Virginia on the state debt, whioh has been a subject of dispute, and has figured in the politics ot the Oíd Dominion for many years, giving rise to their Rj-adjuster party, the Riddleberger act and other laws. WitliUeld from Western States. First Comptroller A. C. Matthews, of the treasury department, has recommended to Secretary Foster that the following amounts be withheld (rom the amounts due western states named below on account of the direct tax: Illinois, Í17,8O; Michigan, $5,638; Minnesota, $5,321, and Wisconsin, $5,201. The amounts are charged on the books oL the department as against the states named for arms, etc., overdrawn by them under section 1,661, revised statutes, prior to Feb. 12. 1887. Looklng for More of the Same. Other indebtedness of states to the general government may be found on the books of the treasury, and other departments are being examined very carefully in order to disccver any balance the states may owe the general government. In the cases specified it may be found that the amounts oannot be legally held as an offset to the government refund of the direct tax to the states, but the amounts named will be held until, the question can be legally determined.