New-York tribune., 1909-03-25
FEAR CUTTING OF BILL
TARIFF TRAINERS WORRY.
Depend on Inheritance and Tea
Tares to Produce ReUenue.

Washington March 24-Wil the Payne bill raise
sufficient amount OF revenue? That is the one
question constantly asked at the Capitol in every
informal discussion OF the tariff. 1t is a question
which is undoubtedly causing little perturoation
IN the minds of the trainers Of the Payne measure
when they hear the objections 10 the inheritance
and the criticism Of the duty on tea
It was admitted to-day by member of the Ways
and Means Committee that the entire increase IN
revenue to be derived under the bun will come as
vas pointed out in The Tribune. from the tax on
tea. cocoa, pepper and like agricultural products
the Inheritance tax and the cigarette tax II the
Senate eliminates the inheritance tax the Treasury
will be sO0o0O0o poorer; If the duty Is stricken
bill practically 100000 will be lost 10 the
government while any further curtailment would
make the Payne bill failure as a revenue pro
ducer Outside of the increases mentioned the
Payne bill a whole decreases the money 70 he
derived from imports and the Ways and Means
Committee is apprehensive lest the removal OF
the inheritance tax and the duty tea will he
effected.
There is strong sentiment in the House for the
removal Of the duty and its repla by
additional 80 cents barrel on beer. Repre-
sentative Haugen. of Iowa. announced to-day that
he and a number Of others would organize move
ment to demand vote this question He as
serts that the tax is breakfast table tax and
that beer a more legitimate article for taxation
He holds that during the Spanish-American war
the brewers raised their prices and have never since
reduced thenl with the result that they have made
millions Of dollars. AL the Representatives from
prohibition states will Join movement of this sort.
and II known that there a number of others
who would prefer a TO the tea tax. 1t
appears that n this question is IN
evitabe. The 'fnsLrgents'' have seized eagerly on
this question as one that will revenge them for
their defeat in the rules fight This defeat many
of them say, brought about by the brewing
interests, with the assistance Of Tammany. They
believe that vote on the question will result in
the certain imposition Of added revenue tax and
that by this they will be able to punish the
brewers.
There will he attempt to put income tax
in the bill while II is being considered by the House
Mr. Stevens. OF Minnesota is studying the
dividend tax bill drawn for President Taft by the
Attorney General. He IS also framing an income
though he might Introduce this bill at this session.
attempt would be made 10 pass it. He has been
IN frequent consultation with the President con-
cernng these bills. and has made several trips to
New York for conference with distinguished law
yers.
he said to-day the only object in presenting bill
at this session would be have some tangible
suggestions before the House. He is convinced
that the income tax is not only constitutional
but feasible method of raising revenues. but he
believes that It should not be appended TO tariff
bill It is his opinion that the bill should Be so
drawn as provide that the revenues therefron
be devoted internal improvements until it is de
cared constitutional by the Supreme Court Ha
does not wish the Treasury 10 be made dependent
on a source Of revenue which may be withdrawn
by a decision OF the court