Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-02-09
INCOME TAX FOR REVENUE
Republicans Must Revise Tariff in Face
Of Deficit, Leaving No Means of Pre-
venting Further shorta0e-Demo-
Gratis See Opportunity to Make Po-
litical Capital Out of Situation.
Especial Correspondence.

md inheritance tax provisions, IN or
der to raise revenues and meet the
deficit caused by the revision, without
imposing duties on coffee, tea and aa-
ditional internal revenue burdens on
+ beer.
This, 1t is learned on high authority,
is the great proposition which CHAMP
Clark and his associates in democraeic
leadership are preparing to put UP 70
the republicans in the house.
g They have been canvassing the SIT
i nation with great care. They know that
real revision means a considerable re-
fuction in the customs revenues which
must aggravate the present serious de-
i ticit That situation has been taken
\ advantage OF by standpnt interests,
who argue that it is impossible 70
adopt a deficit tariff when there is
already a deficit. Real revisionists
among the republicans have been lean
ing toward heroic measures, efnnraesns
a Scent per. yound tax on coftee,
1o-cent tax on tea, and an increase
from 81 to so in the internal revenue
lax on Deer per epsi
Democrats Soc Opening.
The democrats. believing, th;d the tax
on the breakfast table is thoroughly
unpopular with the country ana WRONG
s Al principle. and believing also that
the country is more than ever IN fav2r
Of the income and inheritance taxes;
and having the Endorsements Which
President Roosevelt has repeatedly
given to those ropositions-the dem
ocrats propose to make their big tight
for substitution Of these new taxes, IN
stead of taxing the breakfast table ana
the beer.
on this issue. they are getting ready
i to meet defeat, if necessary, and then
take their case to the country IN the
next congressional election. Ihey pc
lieve that they have the republicans
hopeleesly lin a hole on this PROPOSE
ton. They are making plans with the
utmost care, and republicans VINO know
what is going on are frankly worried
about the situation.
Republicans Face Difficult Task.
The republicans face the most Diff
ticult situation that probably ever con-
fronted the makers OF tariff bill. On
one side the country is demanding re-
vision that shall be effective. 1t seems
deaf to appeals based on the explana-
ton that the revenues are alregay IN
sufficient, II has got its mind saade UP
TO revision, and insists without any
nedt fication or concession.
On the other side stands the fact of
deficit already large. and certain to
be Increased If fundamental tariff prin-
ciples are changed In the revision.
New methods of raising revenue
must be devised. How to do it is the
question. The republican leadership
does not want the income and inheri-
ldance taxes. There is a strong faction
which would support them, but it is
not in authority or control.
viii People Rehel?
The alternative Is inpos1sion Of rev.
enue duties of the sort most certain
to be, offensive to the people. The prop
osition now rather definitely worked
out by the republican managers, to
meet the revenue situation, are:
To impose tax OF cents
on Coffee which it is es
timated would produce an
nually approximately rs 2700000O
10 impose q tax of 10 cents
on tea, producing 1880, 10000, 900
To increase from $I to 81
the Internal revenue tax
on beer. per barrel, pro-
stA ductnX 6U,Vu0, 0UO
Total increase in sight S9T, 900, 900
Now. the democratic position is sinl-.
ply this: taxes on coffee, tea and beer
are peculiarly Objectionable to prac-,
tfcally all the people. Taxes on IA.
comes and inheritances are popular
with the vast majority of people. If
the democrats can get the popular side,
and. al they firmly insist, also the
right side, and make the most of it,
they can gain an advantage which may
result in almost any political gain to
them.
Political Capital in Store.
Not only are they looking to the con-
gressional election of 1910 with the
hope OF carrying the house on this is
sue but they have the presidential
election Of 1912 in their minds eye.
They believe the time is ripe for press
ing the income and Inheritance taxes
Is legislative proposals. The supreme
court, it is pointed out, has undergone
changes in its membership since the
! original income tax decision was over
turned by a divided court standing 5
to A. There has been a vast deal of
effort to figure out where the present
bench would stand on that same meas
ure.
But it is proposed, in introducing a
new income tax measure, to be guided
so far as possible by the experience
OF sthe former one, and to avoid the
pitfalls of unconstitutionality there
encountered. The men who are max
ing study of the question-and it is
being made by the ablest democrats,
from the political, the revenue and
the constitutional sides-believe they
will succeed in framing a. satisfactory
measure which will be SO far different
from the former one as to give the
supreme court ample excuse for con-
ceding something to public opinion
and holding it constitutional.
The Inheritance tax proposition is
being studied with just as much care.
There are especial difficulties in its
way because it tends to conflict with
Inheritance tax measures now in force
In many OF the states. But it is none
- less regarded as an easier propo-