The Birmingham age-herald., 1909-04-27

oldleS DIeel EOIpOIdllDIs Mll0 d CdplAdl Ol $S50. 600, had increased it's capitalization to $l, ,00O,0O and makes about ' per cent on the larger sum. "Obviously," he said "the Steel corporation could reduce it's profit 33 1-3 and still make more than 8 legitimate profit on a fair valuation of it's property"
 Reduction of Profit.
 Mr Aldrich suggested that the United States Steel corporation produced only from 45 to 50 per cent of the steel output, and asked what the Senator from Texas believed the other corporations could make as profit if the prices were reduced 8 1-3 per cent.
 If l am permitted to judge by the size and equipment of their automobiles and the size and equipment of their yachts and by other extravagances they Haunt in the faces of the American consumers. l say yes," replied MT. Bailey 'They might not be able to go to Europe every summer and might find it necessary to re- duce their expenditures, but the American people would be better off for that"
 Docs the senator think the average in- dustries make a profit of more than 8 1-3 annually and regularity" inquired MT. Aldrich.
 Mir. Bailey explained that a B 1-3 per cent reduction in the rates or duty would be equivalent to a 8 1-3 per cent reduc- ton in profit. Again taking up the sub ject of income tax Mr. Bailey said that no system of taxation ever devised has been so just, so equal and so proper as an income tax"
 How did the senator arrive at the in- come of s5000 as the proper one to tax?' asked MT. Aldrich, instead of $4OOO or 5000 or $20O0?'
 Basis for Income Tax.
 MT. Bailey replied that he had fixed that figure because he had assumed that incomes of s5O0O are spent on living ex- penses so that the recipient would be compelled to pay another than the in- come tax at the customs house on what ever he purchased and as the one tax had already been paid, exemption from the in- come tax seemed justified. But more than that, he said, he wishes to levy the tax on those best able to pay it.
 Being further pressed with questions by MT. Aldrich the Texas senator replied:
 T know what you want me to say and I am going to say it. l fixed on $5000 a year as the income to be taxed for the further reason that I wanted it to affect as few people as possible, so that 1t might not provoke hostility Is the senator on?" inquired Mr. Bailey, smiling on MT. Ald- rich who smiled and nodded.
 Tn other words,' retorted Mir. Aid rich, "the senator wants to enact legis- lation with class distinction in order to get 1t through"
 "Does the senator believe Adam Smith was correct in saying that taxes should be laid upon people able to bear them? asked MT. Bailey.
 Certainly" nodded MT Aldrich, who added that the legislation and every code of ethics and morals agreed that taxes should be levied with uniformity and in accordance with the means of people to pay.
 That is rather a serious criticism" retorted Mir. Bailey, "of the republican party which, during the incumbency of Abraham Lincoln, levied an income tax on some and exempted some others"
 Aldrich's Criticism.
 MT. A1drich, returning to his criti- cisms of the plan of income tax proposed by MT. Bailey, said laborers abroad re- ceived from to 60 cents a day and from $50 to $500 or $40O year, while American labor is paid about $700 a year. His plan, he said, would be to reduce the protection that is being given this Amer ican labor over the foreign cheaper labor
 'I would like" said MT. Bailey, amid applause from the galleries, ito make it impossible for that cheap labor to come here at all"
 The gavel of the vice president was necessary to restore order and MT. Ald- rich interposed to say:
 "rThe senator would prevent these labor CTS comng ito this country, but he would permit the product of that cheap labor to come"
 '@The critic of this income tax" said Mir. Bailey, Twill find small audiences in labor centers when he comes to complain that I do not tax somebody besides those included in the 5000 limitation"
 MT. Owen interrupted to suggest that in order to make up for what would be lost in exempting in incomes below 5000, the amendement might be changed to tax incomes of more than $1 ,00OO00 at the rate of per cent.
 Without replying to MT. Owen MT. Bailey continued.
 ''The tender solicitude of the senator from Rhode Island is in keeping with American politics"
 Workers Paid War Tax.
 Referring to an "expatriated citizen who he said owns s10,O0,00O of real es- tate in New York city, he said that work ingmen of this country were taxed to pro- tect his property while he went untaxed during the war with Spain. The worNang- men, he said, who paid tax on plug of tobacco, paid more for the sport of the President.
 MT. Bailey said the action of Congress