Bluefield evening leader. [volume] (Bluefield, W. Va.) 1906-1911, 1909-04-22
senator Cummins Offers Amendment,

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Washington, ID. c., April 22.-Ai
amendment to the Payne-Aldrich tar
III bill providing for a graduated In
come tax was introduced yestcrda,
afternoon by Senator Cummins, o
Iowa.
Mr.. Cummins pointed out that 1!
differs in some important particu
ars from either tho law of 1894 OF
he amendment offered by Senate
Bai'ey. 1t exempts incomes below
$1,000 and and authorizes the dc
iuction of that amount from ever,
1utiable income. The rate provide
Tor is as follows:
Upon incomes not exceeding SO.
900 two per cent; upon incomes no
exceeding $4,000, two and one-haI
per cent; upon incomes not excee..
ing $4,000, three per cent: upor
incomes not exceeding 100000
three and one-half per cent; upor
incomes not exceeding $4,000, foni
per cent; upon incomes not exceec
ng 100000. FIVE per cent; upoi
ali incomes exceeding 100000 81,
per cent.
Mr.. Cummins says that the grad
uated tax so provided for will pro
duce somewhat less than a fat ta>
OF three per cent and Is of the opin.
ion that the amount raised under
his amendment would be about $40,
900, 900.
Another point of difference is .hai
'he duty is to be levied only upon
individual incomes. He treats cor.
porations as mere instrumentalities
for individual profit and the chief
reason for not including corporations
is that to put tax upon the income
o. corporations is to tax those who
are stockholders OF the corporations,
but whose total incomes would not
reach $1,000, precisely as though
they had dutiable incomes. This
would be the result with a fiat rate
but he points out that when the
graduated tax is employed it is OBJ
vious that the individual income
alone be considered, otherwise, he
says "the man with the lowest d Itia-
bic income would, in so far as IL Is
derived from corporation, often
times bear the maximum rate levied
upon the highest income.
THE chief object of a graduated
income tax law is to put the burden
or government upon those who ar
best able TO bear It; and to do so II
is necessary to put higher rate uD-
or large incomes than small ones
There Is no advantage in putting I'm
corporate incomes, because under
the law Of 1894, as well as the Bal
ley amendment, the Individual has
tie right to deduct from his general
income amounts received as dlvi-
dends from a corporation, IL the
corporation pays an income tax.
The amendment proposed by MI.
Cummins further provides that ali
corporations shall make annual re-
ports, showing their gross and net
earnings and the amounts paid a
interest and dividends are made, AMI
also the names of al officers or en-
ployes receiving $1,000 per yeer or
more. In this way the undivided
profits of a corporation are asc9r
tanned, and the distributed share Of
each stakeholder charged as a part
OF his income.
Mr.. Cummins said he recognize 4
that his amendment challenged the
opinion - the supreme court Of the
Urited States on the law OF 1894 in
respect to the constitutional require
menm regarding direct taxation and
he believed II would be impossible
to fran an income tax law that
would not antagonize that opinion
He denied that the proposition 20
tax incomes was Democratic loo
trine. 'If It were a Democratic doc.
trin,' he added, that would not
interfere with my support of It. !
am willing to accept wholesale
sound and just principle no matter
what its rights may be-"
Senator Smith, of Michigan, said
the proposed amendment would rot
reach the incomes OF American res