Omaha daily bee., 1912-03-02


WASHINGTON, March lin reporting
free sugar bill TO the democratic caucus
Of the house late today, Chairman Under
wood Of tire WAYS and means committee
uso submitted bill which In effect would
provide an income tax in the United
States,
II was proposed that the present cor
poIation tax be extended TO include 'indi-
'.duals and partnerships doing busi-
ness of SSoo0 year or over" Mr.. Under
wood said this practically would accom-
plish The purposes Of an Income tax and
at the same time comply with the SUI
preme court decision against the eonstitu-
,onallty of an income tax. The proposed
tax would be per cent.
The bill removing the taxes levied at
the customs houses on sugar imported
into this country. said Mr.. Underwood,
viii have the effect Of reducing the price
Of sugar 10 the consumer about ~ cents
a pound,
Win Cut Large Profits.
statcmtn by Mr.. Underwood to the
caucus, says that In the opinion Of the
Ways and means committee the large
profits made by manufacturers and re-
finsrs OF Zugsy have been due to the Gus
toms tariff and that placing sugar on
the free list would reduce the profit,
would not destroy the industry in the
United States. but would result in saw
Ing to the American people Of tl0I.cCoooo.
The purpose OK the excise bill pro-
scented 60 the CAUCUS Mr., Underwood
said. Us y extend the tax on doing Of
bu sinSss By Individuals and co-partner-
slip Tic special tax viii accomplish
lln- same result Hs- would have been
aceomrllshcd- By AM Income tax OF II
were within the power Of congress TO
enact an income tax so flr as raising
revenue Is concerned, but at the same
time the blu keeps well within the prin-
eiplcs laid down by the supreme court
in its decision affirming the constitution
ality Of the corporation tax law.
Corporation Tax Not Altered.
The bill does not In any wa alter
amend or repueal the corporation tax
law as il now stands on the statute
books, but provides that every person.
firm or co-partnership shall be subject
to pay annually a special excise tax
with respect TO carrying ON or doing
business BY such persons. equivalent 70
I per cent on the entire net income
over aud above S.009 received by such
person from all sources during each year
and further provides that In computing
the income OF aNy person there shall
rot be included the amount received
from any corporation. Joint stock COM
pany or association. or insurance conf
pany II the special excise tax Of ! per
cent now imposed by law has been paid
by such corporations or stock company
or Insurance company or association.
, In other words, the income derived
from dividends OF corporation on which
the tax Is now levied by law win not be
subject to a further or additional tax.
but incomes derived from other sources
OF business than those named in the cor
poratlon tax act win be subject to a tax
Of per cent. where the net income ex-
ceeds See annually"
The statement further says:
That, IL these bills bocem laws they
will have repealed burden OF taxation
now borne by the American people on
food product that all must consume. OF
Sie7, ,ee,0o0 and viii have substituted in
place thereof taxes which probably will
aggregate between s50so0.cOo and 81. .0oo, 900
that will be collected from persons with
an income of more than SEQ"
The sugar bill submitted to the caucus
would eliminate the much discussed Dutch
standard test and contains the following
provisions:
Sugars. tank bottoms. syTups OF cane
stIice. melads, concentrated melsda. con-
crete and concentrated molssses. maple
sugar, maple syrup. refined syrups. giu-
eose or grape sugar. and cane sugar,
shall be admitted free Of duty.
.'saceharine, 6 cents per pound duty.
Sugar candy and ali confectionery not
specially provided for in this act or iu
the first section OF the act cited for
amendment. valued at 10 cents por pound
or less. ard sugars after being refined.
when tinctured. colored or in any way
adgltersted, 2 cents per pound; valued at
more than l. cents per pound. . per-
c,.ntum Sd taloreuE The weight and the
value ut The immediate coverings other
than The outer packing case or other COW
ering shall be included In the dutisbIe
weight and the value OF the merchandise"