The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1912-03-08
The Ways and Means Committee
Prepares an Excise Law.
HITS THE $4,000 PER SALARY
SoIons Figure Revenue of $780,.
100000; Provisions of
This Bill.

Washington, March IA bill to pnt
sugar on the free list, eliminating $751;
100000 in all cusoms revenue, and an.
other to extend the present corpora
ton tax to include individuals and CO.
partnerships having an income OF So
900 year or over were ratified by
the Democratic caucus of the house
The excise law, so called by the
ways and means committee, is in eff
feet an income tax. The bill is so
drawn that it is expected to comply
with the supreme courts decision
against the constitutionality Of an in
come tax. Its effect would he to tax
every person who earns more than
$4,000 year. on the excess of SIS, 900
at the rate of l per cent. -. --,...
The estimate of Chairman Under.
wood and members of the ways and
means committee is that the proposed
excise tax would bring in revenue
of between $50,O00,000 and $60,00G,090
a year. .........
Placing sugar on the free list, the
Democratic leaders estimate, will re-
Guce the price of sugar to the con-
sumner about Ia cent a pound. = :
The secret that members of the
ways and means committee had been
so closely guarding for several days
was the provision to extend the cor
poration tax.
Some of the special provisions OF the
income tax or excise bill provide, that
in computing incomes expenses actu-
ally incurred in carrying on a business,
not including personal, living OF fam.
lily expenses, shall be deducted, as
shall interest on Indebtedness.
Provides Some Exemptions.
National, state, school, and munich
pal taxes. not including those assessed
against local benefits, shall be de
Quoted from the profits on incomes OF
the persons who actually paid them:
Losses by fire, shipwreck, storm, etc,
not compensated by insurance, and
worthless debts are to be exempt. .
The term business" as employed in
the act is held to embrace everything
about which a person can be employed
and all activities which occupy time
attention and labor Of persons for live
lihOOd or profit. "e
The word person" Is held to in.
clude natural persons or individuals
or firms or copartner ships.
One provision is drawn to- eliminate
salaried men who contribute to the
Another. provision would direct all pay
masters and disbursing officers Of the
United States to deduct the tax from
payments to government employees.
Chairman Underwood made a 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, another bill extend
ing the present excise tax now levied
by law on corporations to individuals
and copartnershjps having an annual
income OF more than $5,0OG,a year
In the caucns that bill was not Sc.
riously opposed
The free sugar bill, however, was
bitterly assailed by representatives
from Louisiana, the Sugar Cane state
and representatives from sugar beet
growing states who were absodved
from the bond of the caucus. No Toll
call on the ratification of the bills wa S
demanded.
Majority Leader Underwood an.
nouncee that the bills would be re-
ported t. the house in q few days.
Chicago, March addressing a
progressive meeting here Clifford Pin.
chot, formerly chief fore ster. declared
that the leadership OF the progressives
had passed from Senator La Toilette
to Theodore Roosevelt. He asked the
supporters Of the Wisconsin senator
TO Join in the Roosevelt movement
The mention of La Follette's name
brought prolonged cheering. After the
cheering subsidized Pinchot said he was
sorry that the ethics Of public speak
ing prohibited him from joining in the
applause. Mr.. Piuchot said:
81 am here to do all i can for the
nomination. Of Theodore Roosevelt fol
president"
Washington, March 2.--"If | had my
way I'd make it a penal offense for any
mother to put toothbrush in the
mouth of a child" declared Repre-
sentative Cyrus H. Sulloway of New
Hampshire at a hearing before the
District of Columbia committee ON the
bill to regulate dentistry.
Representative Sulloway denounced
the use of the toothbrush vigorously
and lauded the good old days OF to
tacco chewing and dipped snuff.