Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1909-04-24
What TAFT WANTS
IN TARIFF TAX
He Opposed Duty on Tea and Coffee.
Strong for Inheritance or In
come Tax-Views Of
Bill"

WASHINGTON, ID. c., March 30.
President Taft is not assuming to
dictate to Congress what particular
rates It shall prescribe in revising
the tariff. At the same time he is
willing to let members Of both
Houses who visit him understand
what his own ideas are.
There has been no disposition on
the part OF the President to swing
any kind OF a stick, and reports that
intimate that members of Congress
have been called to the White House
to receive the dictum OF the Execu-
tive are not warranted by the facts.
In several cases the President has
suffered by the Misrepresentation OF
his views.
Opposes Tea and Coffee Tax q"
The President believes In the gen.
eral principles Of the Payne bill and
Is of the opinion that It provides for
reductions in the schedules that COM
prise the necessities, with one or two
important exceptions. In view OF the
increased cost of living, the Presi-
dent is unwilling that through Fed
eral taxation on the things consumed
by the masses daily this cost OF living
shall be still further increased.
Therefore he is opposed to the pro-
posed tax on tea and the countervall-
ing duty proposed on coffee. He
wants the tea tax stricken from the
bill outright and the coffee proviso
eliminated, as he has made 1t plain
to those with whom he has talked
that while coffee may be on the free
list, the countervailing clause will
impose a duty practically amounting
to cents pound.
Favors Reductions
While the utterances OF the Presi-
dent have been more guarded with
regard to lumber, hides, shoes, and
oil, the impression is gathered by
those who have talked with him that
he favros material reductions on
these articles, and that he opposes
any increase in the schedule covering
gloves and stockings.
The Executive understands that
material decreases In the rates OF du-
ty on articles largely imported may
mean a loss In revenue unless the
imports become greater, and when
his ideas have been sought he has
suggested an alternative proposition.
To meet this loss he would have first
OF all an inheritance tax because Of
the ease In collecting 1t, and the
certainty in fixing the amount of tax
to be collected. On the theory that
taxes should be imposed along lines
that create the least friction, the
inheritance tax, from the Presidents
point OF view, is ideal and the only
drawback to this plan, is the fact that
In a number of the States this sys-
tenn is operative, and its opponents
argue that to impose 1t by Federal
enactment would double the burden.
Proposes Alternative .. ~
II the inheritance tax is not ac-
cepted by Congress then the Presi-
dent will ask for a modified income
tax, although such measure may
not be advanced until after the re-
vised tariff law is put into effect and
some estimate can be made of its
revenue-raising capacity. This meas
ure probably will be brought out dur
ing the next session. More properly
speaking, this proposition Is an ex-
else tax measured by percentages on
income.
This tax on dividends would be ap-
plicable to all stocks but mutual life
insurance companies, building asso-
Citations, and national bank stocks
According to treasury statistics such
q tax would yield about SIS. ZOO, 000,
which would Offset the loss OF the tea
and the coffee tax.
Moderate Stamp Tax
II the reduction In the duties
which he believes should be made en-
dangers the revenue-raising capacity
of the proposed law the President is
Of the opinion that moderate stamp
tax would not impose an unfair bur-
den upon the people. Statistics are
now being compiled to show what
amount this tax upon certain speci-
fed articles yielded during the war
with Spain. ... .,. 81
These taxes, II reimposed, would
be placed upon comparatively few
things, such as bank checks. deeds,
mortgages, and other documents of a
legal character. Approximately such
a tax would yield between 100000
900 and $15,O00.O00. Such a tax.
the President believes, would be bet
ter than tax upon foodstuffs, that
the people ought not to be called
upon to bear at the present time.
1t is evident that President Taft