The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1912-07-27
HOUSE EXCISE BILL
IS PASSED BY
The SENATE
Taxes Individual and Partner
ship Incomes Over $4,000
RECIPROCITY ALSO REPEALED
Bill Fixes a Tax of 81 a Ton on Paper
in Place of the Present 1913
Duty.

Washington, July 27.-Democrats
and progressives united again IN the
Senate last night and by vote OF 30
to IS passed the Democratic excise
tax bill, extending the present tax on
CORPORATIONS to the business of in
dividuals. private firms and copart-
nerships Attached to the measure
also by the aid of Republican vote,
were amendments for the repeal OF
the Canadian reciprocity law, and the
fixing of a 50 ton tariff on PRINT
paper, and for the establishment OF
a permanent nonpartisan tariff com
mission.
The second days victory for the
Democratic progressive combination
came after the excise debate. The
passage of the excise bill became GER
tain early in the day, and the Repub-
lican leaders offered little opposition.
Senator Borah early in the fight to
have his income tax bill substituted
for the tax on business" lost by
vote of 80 to %, although he mus
tered to his support many of the reg
ular Republicans and four Democrats
-Ashurt, Culberson, Hitchcock and
MARITIME.
TheDemocratc members stood al
most solidly against any change IN
the House bill that would threaten
its defeat. They, declared the tax
on business" was clearly constitu-
tional, while an income tax law had
once been held unconstitutional by
the Supreme court, and might again
suffer that fate, unless the state ratl-
fv the amendment to the federal con-
stitution. On the passage OF the eX-
else bill the Democrats were support
ed by the following progressiyes ana
insurgent Republicans: Bourne, BITS
tow. Clapp. Crawford, Cummins, Gron-
ma. Jones, Kenyon, La Toilette, Mel
son. Poindexter, Townsend and
Works
The measure was changed from the
original House bill only in minor par
ticulars, except for the addition OF
the Canadian reciprocity repeal and
the permanent tariff commission pro-
vision. 1t will go back to the House
for the approval OF that body. the
excise measure would levy upon all
persons. firms or co-partnerships an
annual tax equal to ! per cent of net
income in excess of $4,000.
Senator Cummins' permanent tariff
board amendment which was carried
once Thursday in the wool fight and
then lost in the final upheaval when
the La Toilette bill passed, was at
tached to the excise bill by vote OF
80 to 90. All of the Democrats eX-
cept Pomerene of Ohio voted against
the tariff board, while all of the Re
publicans except Hepburn of Idaho
supported it.
The chief fight. aside from that
centering about Senator Borahs IN
come tax measure, came upon the
Canadian reciprocity amendment Of
fered by Senator Gronna of North Da-
kota. The amendment adopted by
the Senate, 81 to 20, provides for the
complete repeal of the reciprocity law
and for the establishment of rate
of 81 a ton on print paper imported
from Canada, in place of the present
duty of S3.75.
The portion of the reciprocity law
now in effect, which admits paper
free from Canadian provinces which
do not discriminate against the Unit
ed States. was defended by Senators
Williams. Bacon. Smith of Georgia
and other Democrats. They declared
the free paper provision of the recip-
rocity law should be allowed to re-
main i'm effect. and said under such
an arrangement they would be glad
70 support a repeal of the rest of
the law. Senator Bacon finally OF
fered an amendment to repeal all of
- l., hn fVnn
paper section. II was defeated, 81 TO
q, Bristow, Clapp, PoindeXter aud
Works being the only progressives
who voted for it, The GrOnna amend
ment was then adopted.
The Senate adopted an amendment
by Senator Fletcher which changed
the excise bill so that the tax would
not apply to labor organization, agri-
cultural associations or fraternal or
carnations Of an insurance charac-
ter. a plan TO check the tobacco
monopoly by a special excise tax on
production above a certain amount
offered by Senator Hitchcock, was de-
feated
The Hitchcock proposal was a spec
ial tax on the production OF more
than % 100000 pounds of tobacco,
z0o,000,00o cigars. the same number
of cigarets and 4000.0 900 pounds OF
SNUFF by any one company. For an
annual production above this guam
tity the tax would rise so rapidly that
10 would soon become prohibitive.
Senator Hitchcock declared such a
taxing system would curb a tobacco
monopoly. which the government had
failed to do through a mistake, lack
Of judgment. connivance, or in some
other way"
The third Of the Democratic tariff