The Barre daily times. (Barre, Vt.) 1897-1959, 1909-04-22
|COMMINS FOR
INCOME TAX
Introduces His Bill to U. 5.
Senate
SEES 4O,OOO,OOO REVENUE
Exempts Everything Below $4,000 and
Is Graduated from $4,000 to $780,
90 and Over at Charge Of
Per Cent.
SEES 4O,OOO,OOO REVENUE

Washington, april Ex-senator Cum
minis yesterday introduced his amend
ment to the Payne.Aldrich tariff bill,
providing for a graduated income tax,
which he believes would produce s4O,-
100000 revenue. Mr. Cummins pointed
out that it differs IN some important
particulars from either the law OF 1894
or the amendment offered bv senator
Bailey II exempts incomes below So
900 and authorizes the deduction OF that
amount from every dutiable income.
The rate provided for Is as follows.
Upon incomes not exceeding $4,000
2 per cent; not exceeding $50 900. 2is
per cent; not exceeding $40 600. 3 per
cent; not exceeding 100000, az per
cent; not exceeding $4,000. 4 per cent.
not exceeding 100000, 5 per cent: up
on all incomes exceeding 100000, 6
per cent.
Mr. Cummins believes that the gradu.
ated tax so provided for win produce
somewhat less revenue than q fat tax
OF 8 per cent The duty Is TO be levied
upon individual incomes. The chief rea-
son for not including corporations Is
that. to put tax upon the incomes Of
corporations Is 10 tax those who are
stockholders of the corporations, but
whose total income would not reach
$1,000, precisely as though they had
dutiable incomes.
Tie amendment proposed BY Mr..
Cummins further provides that an cor
porations shall make annual reports,
showing their gross and net earnings,
and the amounts paid as interest aud
dividends, and the persons 70 whom
payments are made, and also the names
Of all officers or employees receiving S..
000 per year or more In this way the
undivided profits of 4 corporation are
aseertained and the distributed share
Of each stakeholder charged as part
Of his income,
In presenting the resolution to the
Senate, Mr. Cummins declared that
graduated income tax on corporations,
would result in great corporations pay.
ing the highest rate. although their
stock might be largely held bY men Of
small means In that way TIE result
might be 70 place the highest tax on
MEN Of small means.
Mr. Cummins said he recognized that
his amendment challenged the opinion
Of The supreme court Of the United
States on the law OF 1894 IN respect to
the constitutional requirements REGARD.
ing direct taxation and he believed III
would be impossible to frame an income
tax that would not antagonize that
opinion.
If, he added. that opinion Is TO
stand in its fnl scope then the United
States mnst abandon for all time or IN.
tn the constitution + amended the ex-
srcise of power and authority which has
been recognized for 100 years before the 1
opinion was announced
Mr.. Cummins expressed the opinion (
that the supreme court should again be
invoked. That decision he said. "re-
stricts the federal authority and we
should not permit time 20 pass without
lgain asking an examination OF this vi I
al power Of the government. he de-
Jared that such a restriction OF the /
lower OF taxation of the government
should prove disastrous IN time Of war
Calling attention TO Mr.. Cummins'
allure to tax incomes Of corporations
n his proposed amendment, Mr.. Rayner
declared 'We are after the corporations
principally, and think you should be,
co."
Il am after justice and ] am not after
retorted Mr.. Cummins.
Senator Smith OF Michigan said the
proposed amendment would not reach
Tie incomes OF Americans resident
broad unless the tax was placed upon
corporations Mr. Rayner took the same
lew. Suppose he said, Carnegie
With an income Of 100000 year, de
lived from the steel corporation, should
x living abroad, there would be no way
0 collect the tax il he had no other
in the United States to be at
ached"
Il propose replied Mr.. Cummins.
that the corporation shall pay That
AK That II the purpose Of my amend
aent.s