March 9, 1935 - Editorial - Crazy = Quilt Taxation, by George Lorimer
Last year, state and local taxes were not only more than twice as large as Federal taxes but to a considerable extent duplicated the taxes levied by Congress. The growth of this evil of multiple and duplicate taxation is a matter of the last 20 years. Formerly, the Federal Government was supported by customs duties and a few excise taxes. At the same time, the states derived their chief revenue from taxes on real estate and corporations. Today, more than a score of states levy individual income taxes, and the number will be increased before the adjournment of the 48 legislatures now in session.
In 1932, the Joint Committee on Internal Revenue Taxation reported 326 instances of duplicate taxation the Federal and state governments.
Comments: At this time labor was not an object of income taxation. The income tax was still restricted to the gains and profits of business activity. It did not tax wages or other money paid for providing your own individual labor that you had the constitutional right to contract. However, it is only logical that once the states saw that the Federal Government was getting away with taxing labor, many would follow suit and today most states tax labor too.