Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-03-02
Removes Duty Entirely add
Makes Up For Loss By Levy
llg Assessment On IndNld-
MS and Co-PartnershipS,
MEASURE HARMONY
WITH COURT DECISIONS
.WiII Result in Saving of I l-2
Cent a Pound to Consumer
Incomes Under $1,000 An
nuaIIy Exempted By Law.

lllSOtllCo OlidSi PCkCOO w
nuaIIy Exempted By Law.
| IBy Morning journal Special LEASED Wlre.l
| Washingtopl, March Ia bill to put
| sugar on the Tree list, eliminating
! S5a. 600, 900 in all customs revenues,
| and -n,uother to extend the present
| g ~ ~ tp0nkQ include individuals
| q. tn doing business OF
bver were ratified
n "o'r"''e '"'''u' Of
s4nect an income tax. The bill Is so
drawn that 1t Is expected to comply
with the supreme courts decision
! against the constItutionality of an m
come tax. Its effect would be to tax
every person who earns more than
| 1000 a year on the excess of $4,000
ut the rate of per cent.
Chairman Underwood estimates
that the proposed excise tax wouie
bring in a revenue Of between $780,
600. 600 ana s6o.ooo,0o0 a year.
Placing sugar on the free list, the
democratic leaders estimate will re-
duce the price of sugar to the con-
sumner about a cent and half
pound.
The secret that members OF the
| WAYS and means committee had been
80 closely guarding for several dass
was the provision TO extend the cor
porntion tax.
In the cauous that bin was not serl-
ously Supposed. The free siigtr bil',
however was bitterly assalled BY reps
resentatives from Louisiana. the cane
sugar states and representatives, from
sugar beet-growing states who were
ahsolvea from the bond OF the caucus.
No roll call on the ratification OF the
bills was demanded
Majority Leader Underwood an
nounced that the bills would be re-
ported To the house In few days
The president of the United States,
should the proposed tax law be en-
acted, would pay per cent on
SIC. 900.
Chairman Underwood made state
ment To the caucus that he had been
directed by the ways and means COM
mittee to submit bill to place sugar
on the free list and another bill en-
tending the present excise tax now
levied ON corporations to individuals
and co-partnerships having an annual
income of more than $4,000.
"The bin removing the taxes levied
at the customs houses on sugar, said
Mr.. Underwood. Imported into this
country win have the effect OF re-
ducinu the price of sugar to the con-
nA.half nppt9 "A
pound"
The statement further SAYS that. In
the opinion Of the ways and means
committee. the large profits made hy
manufacturers and refiners of sugar
have been due TO the customs tariff
and the placing OF sugar on the frec
list would check the profit but not
destroy the industry In the states re-
sultlng To a saving 10 the American
people of $iO7.o0o,000 per year.
THE puriose OF the excise bill pre-
sented to the caucus" Mr.. Underwood
said lis to extend the tax 10 the busi-
ness of individuals and co-partner-
ships The special tax will accomplish
the same result as would have been
accomplished by an income tax II IL
we're within the power Of congress 10
enact an income tax law go far as
raising revenue is concerned, but Mt
the same time the bill keeps wen
within the principles laid down by the
supreme court in it's decision affirm
ing the constitutionality of the cor
poration tax law.
The hill does not IN any way alter.
amend or repeal the corporation tax
law AS u now stands on the statute
hooks. bat provides that every person,
hrm or co-pa rtnership shall be sub
iceted to pay annually special ex-
rise tax with respect to carrying on
nr doing business by such persons.
equivalent TO one per cent on the en-
tire net income over and above $1,000
received by such persons from all
sources during each year. and further
provides that. In computing the in
come Of any person there shall not be
Included the amount received from
any corporation Joint stock company
or association or insurance company
II the special excise tax of one per
centum now imposed by law has been
paid hy such corporation or stock
company or insurance company or as
sociation."
Th.. statement further says:
II these bills become laws they VIII
have repealed a burden OF taxation
now borne by the American people on
q food product that all must consume
n si0s 600. 900 and will provide sub
stituted In place thereof, taxes prob
ably aegregating between s5c.eoo.eo
and SEQ. 10000 and collected from per-
sons whose income is more than
) 5.ooO.r
The sugar hill submitted 20 tho
caucus would eliminats the much dis
susscd Dutch standard test aad cons