Morning journal and courier., 1893-11-15
THE INCOME TAX RATE.

1t Is Expected That . Revenue of Fifty Million Dollars VIII be Raised-The Rate Will be Two Per Cent. and the Exemption
 Will be High Enough to Exclude
 she Great mass Of Laboring Men
 Question of Duty on Sugar an open
 one.
 WASHINGTON, Nov. 14.-A revenue of $50, ,000, 900 is expected by the democrats of the ways and means committee from the moderate income tsx which they pro- pose to incorporate in the new revenue bill. The rate of the tax will probably be 9 per cent. and the exemption will be high enough to exclude the great mass of labor ing men and people on small salaries. The limit now under discussion Is from S, ,500 to $4, ,0e0. A good many statistics have been prepared by treasury experts on the incomes of the country and the rates of revenue obtained under different plans and 1t is believed that the 9 per cent. rate will yield handsome revenue.
 If the increase in the revenue should prove insufficient after year or two to meet the demands of the treasury, the rate might be slightly increased or the limit of exemption lowered. One of the attrac- tions of the income tax to those members of the committee who are advocating it Is that it allows changes of rate to meet de- mands without disturbing the industries of the country. If the income tax is adopted in the form now under consideration changes in the internal revenue laws will not be necessary. There will bs no in crease in the beer tax, the whisky tax, the tax on manufactured tobacco or the tax on cigars.
 The question of duty on sugar is still an open one, but 1t is not unlikely that duty will be imposed of about cent per pound on both raw and refined sugars. This will enable the committee to abandon the duty now paid Louisiana and Nebraska grow CTS without leaving them absolutely with out protection against foreign competition. It Is also desired to strike a blow at the su- gar trust by making the duty on refined sugar substantially the same as on raw sugar. The reciprocity section, which deals with sugar, hides. .tes and coffee, will prob ably be stricken from the law, but without sbrogation of the existing recip- rocity arrangements with Germany, with Spain regarding Cuba, and with the South American couhtries. The
 
 from all countries, unless 6 small tax is | imposed on sugar, and 1t is not believed I that the countries having reciprocity ar I will desire to abrogate them I because the retaliatory duties against South I American countries may be abandoned.
 The treatment of bituminous coal Is mother question with the democrats. Coal was on the free list in the original draft of | he tariff bill. The protests from the coal districts of West Virginia, Pennsylvania, Tennessee and Alabama has been SO strong, | however, that some of the members of the | committee are weakening and may vote to retain & small duty.
 Chairman Wilson hopes to present the completed bill to the republican members ,f the ways and means committee by the alter part of next week, so that they can lave their minority report ready upon the meeting of congress in December. He is lot in favor of @ party caucus to pass upon he bill, but believes that 1t should be fair y considered by the house as presented by he committee. MT. Wilson believes that he bill will be more symmetrical and con- istent if taken up as it comes from the and that general debate will olve some of the problems which might 'suse an interminsbl ediscussion in party aucus.