Daily press. [volume] (Newport News, Va.) 1896-current, 1909-04-22
Exsmpls Al Amounts Under FlIs
Thousand 4 vear.-.-OOes na
Touch Co'poraloss
OPERATES on GRADUATED SCALE
As incomes Increase Rate Of Taxa.
ton Rises--Would Put heavieee
Burden Uvon Those Abiest to Pay
Thinks Measure Would Produce
Forty Millions Of Revenue.
tBy Associated Press.)

. - -
by Associated Press.)
WASHINGTON, d. G., April 21.--
His amendment to the Payne-Aldrich I,
tarin bill, providing for a graduated
income tax. was introduced today BY
Senator Cummins, of Iowa.
Mr. Cummlns pointed out that It
differs In sonic important particulars
from either the law OF 1884 or the
amendment offered by Senator Bailey.
1t exempts incomes below $1,000. and {
authorizes the reduction Of the
amount from every dutiable income.
The rate provided forts as follows:
Upon incomes not exceeding $f0-
600. two per cent; upon incomes NOT
exceeding $4,000, 2 1.2 Fer cent;
upon incomes not exceeding $4,000.
3 per cent; upon incomes not exceed-
ing $4,000. 3 1-2 per cent: upon In
comes not exceeding $4,000. per
cent: upon incomes not exceediHg
100000. S per cent; upon all incomes
exceeding 500. 900. 6 per cent.
Would Produce $4o,ooo,ooo.
Mr.. Cummins believes that the
graduated tax 80 provided for will
produce less revenue than / fat tax
OF 3 per cent. and IL Of the opinion
that the amount raised under his
amendment would be about forty mil
| lions Of dollars.
Another point OF difference Il that
the duty 10 to be levied only upon In
diyidual incomes. He treats corpora
tons a. mere instrumentalities for -.
dividual profit and the chief reason
for not including corporations IL that
to put tax upon the incomes Of cor
rorations 10 to tax those who are
stockholders Of the corporations. but
whose total incomes would not reach
! 5000, precisely ~ though they haa
dutiable incomes. This would be the
result with = nat rate; but he points
out that when the graduated tax %
| employed, It ID obvious that the indf
| vidus,, income can alone be consider.
ed; otherwise" he says. "the mAA
with the lowest dutiable income would.
In SO far Is it is derived from . cor
poration, oftentimes bear the maxi
mum fate levied upon the highest m
comes.
eurdsn Upon the stroWs-
The chief feature OF graduated
| income tax law IL to put the bafoeu
OF government upon those who ma
lest able to bear II: and to do 70 y
IL necessary to pat . higher reee
Iupon large Incomes than up0n knDaR
ones. There II advantage II PIT
ting in corporate incomes, bccause NJ
der the law Of 1894, - well % IL
Bailey amendment, the Individual shge
| the right to deduct from his geaefA
income amounts received ~ Dividends
from q corporation n the corporaetcn
pays an income tax."
Corporations Must Report.
The amendment proposed BY Mr..
Cummins further provides that 81
corporations shall make annual 70
ports, showing their gross and nee
earnings, and the amounts paid ~
interest and dividends ard the Per.
sons to whom payments are msds.
and also the names Of all o@cefs %
emf loyes receiving 5000 per year o.
more. In this way the undividea
profits OF a corporation are ascet.
tanned, and the Distributed xhare e.
each stakeholder charged - . pass
Of his income.
Mr.. Cummins said he recognizes
that his amendment challenged the
opinion Of the Supreme Court q tho
United States on the Law Of 1904 -;
respect to the constitutional reQutIe.'
mcut regarding direct taxation. aea
he believed II would he impoBt6ee
to frame IN income tax law thaS
would not antaeooize that .opinion-
He denicd that the proposition TO
tax incomes was . Dcmocrsfsc eQc-
trinc