Arizona republican., 1912-03-02
Sugar is Placed on the Free List and to Make up De felt Provisions of Corpor- ation Tax Have Been Ex- tended.
UNDERWOOD MAKES
 GLOWING PROMISE
Says Repeal of Sugar Tariff Will Save S107, ,O0O,O 900 Annually to the Country by Reduction in Staples Price.
iAssocinted Press DiSbdtct ]

IIssociated Press DiSbdtct
 WASHINGTON. D. (, March l- The democratic caucus tonight rau- fled the sugar br and the income tax or excise bill. presented today by Chairman Underwood, of the ways end means committee. Both bills will be reported to the house.
 According to a statement made bv Caucus Chairman Underwood the removing Of the tariff from sugar v,iu reduce the cost of sugar to the consumer one and half cents per pound with the result of saving tne neonle q hundred and seven millions yearly: it would reduce the pr'lll to the manufacturers but would not destroy the industry The purpose of the excise pili' said Underwood, lis to extend tue fax to the business of individuals ana o-partnershfps. This special tax VIII .,cconDlish the same result as Wouiu have baen accomplished by an income t,v if il were within the power ol ,.,,,,,,ose to enact an income tax law eo far as raising revenue ls con, carned. bat at the same time the pm l,eer,s well within the prlnclples laiu down bv the supreme court declsloI' srffr,niue the cOnstitutionality oL 'iie corporation tax law.
 The biu does not change the cor noration tax law. It merely eAte''u9 tbe same provisions to lndiNloualS and nortnerships having an annual
 f ,,ore than five thousand dollars .,.isiors n, ,,,a ;,oonoe tax or excise bill pro- ,-ida that in computing incomes, eN- ,.a,ses actually incurred in carry HE op the business not including 'he Poi eonal living and family expenses siiil he deducted as shall the interest ol indebtedness. All taxes, eNcluuiht ,boee assessed against local pene- fite will be deducted from the proIit' on incomes of persons who nave act' ,,ol1, maid them. Losses bE liie storm etc. not compensated pH III ,.,,,..,ca and worthless debts are U = axanont The term business, az an,nloved by the act is held to eHi brace everything about when per so, cap be employed and all acliNi ties which occupy time, attehtloh' VI Iabor of persons for livelihood or lio! it one provision is drawn to elihi nate salaried men who contribute U +bo taxed income of firms or com ,anies Another provision would ui rect all paymasters and olSourSlii' ocficars of the United States 10 de duct the tax from the payment government employees. o,
 Underwood estimates the propose evciea tax will bring in revenue De tween fifty and sixty millions hN or,. nArson in the country drawing
 salary in excess of five thousand uol 7oro q wear will be subject to II rho nresident of the United states rbould the bill pass. will pay one per cont on seventy thousand dollars seven hundred his salary being seN ontv-five thousand. The secret 'ha members of the committee have pee so carefully guarding is the proVislo +o extpnd the corporation tax. In eau GUS that bin was not opposed serious lv The free sugar bill, however wa assailed bitterly by representatives Louisiana and other cane sugar state and representatives of the beet gro" ing states. who were absolVed lroi tbe hond of the caucus. No roll ca on the ratification of the bills was de manded. Underwood announced tn hills will be reported to the house a few days.