Seligman. Foster & Abbot. Int. Rev. Rec. Bout. (1863). Bout. (1864). U. S. Rev. Journ. Treas. Decis. Wall St. Journ. The history of income taxes in England and other European countries is ably treated in Seligman, 57-355. For State income taxes, see Ibid., 388 et seq. The following is the Amendment to the Constitution of the United States, by virtue of which the present income tax law was passed: ARTICLE XVI The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. The present law, approved October 3, 1913, is Section II of an act "To reduce tariff duties and to provide revenue for the Government, and for other purposes," and is, with notes appended, as follows: THE NORMAL AND ADDITIONAL INCOME TAX A. Subdivision I. That there shall be levied, assessed, collected, and paid annually upon the entire net income arising or accruing from all sources in the preceding calendar year to every citizen of the United States, whether residing at home or abroad, and to every person residing in the United States, though not a citizen thereof, a tax of one per centum per annum upon such income, except as hereinafter provided; and a like tax shall be assessed, levied, collected, and paid annually upon the entire net income from all property owned and of every business, trade, or profession carried on in the United States by persons residing elsewhere. Subdivision II. In addition to the income tax provided under this section (herein referred to as the normal income tax) there shall be levied, assessed, and collected upon the net income of every individual an additional income tax (herein referred to as the additional tax) of one per cent. per annum upon the amount by which the total net income exceeds $20,000 and does not exceed $50,000, and two per cent. per annum upon the amount by which the total net income exceeds $50,000 and does not exceed $75,000, three per cent. per annum upon the amount by which the total net income exceeds $75,000 and does not exceed $100,000, four per cent. per annum upon the amount by which the total net income exceeds $100,000 and does not exceed $250,000, five per cent. per annum upon the amount by which the total net income exceeds $250,000 and does not exceed $500,000, and six per cent. per annum upon the amount by which the total net income exceeds $500,000. All the provisions of this section relating to individuals who are to be chargeable with the normal income tax, so far as they are applicable, and are not inconsistent with this subdivision of paragraph A, shall apply to the levy, assessment, and collection of the additional tax imposed under this section. Every person subject to this additional tax shall, for the purpose of its assessment and collection, make a personal return of his total net income from all sources, corporate or otherwise, for the preceding calendar year under rules and regulations to be prescribed by the Commissioner of Internal Revenue and approved by the Secretary of the Treasury. For the purpose of this additional tax the taxable income of any individual shall embrace the share to which he would be entitled of the gains and profits, if divided or distributed, whether divided or distributed or not, of all corporations, joint stock companies or associations, however created or organized, formed or fraudulently availed of for the purpose of preventing the imposition of such tax through the medium of permitting such gains and profits to accumulate instead of being divided or distributed; and the fact that any such corporation, joint stock company, or association, is a mere holding company, or that the gains and profits are permitted to accumulate beyond the reasonable needs. of the business shall be prima facie evidence of a fraudulent purpose to escape such tax; but the fact that the gains and |