The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-03-15
WOULD MAKE RICH
SHARE THE BURDEN
uNpE Rwoop URGES THE HOUSE
TO PASS PROPOSED Ex.
clsE TAX BILL.

Washington. March 5.-Maintalning
the constitutionallty of the proposed
excise tax bin. Extending provisions OF
the corporation tax law TO individuals
and -pnrtnersAhss, submitted az a
revenue measure to replace customs
duties on sugar. Representative I'm
derwood, chairman OF the Ways 9nd
Means committed. made a report 10 the
House yesterday, urging The passage
of the bill
After arguing The consututionality Of
the proposed lax, proclaining II in alb
solute conformity with Supreme
Court decisions relating to the income
tax, the report explains the provisions
and scope OF the measure as IL would
effect individuals.
while the bill" says the report.
"embodies new application Of taxes,
II carries All The modern philosophy OF
taxation. It proposed to obllge the
citizen To- contribute annually fair
and just portion OF his net gains TO the
maintenance of the government. AS al
ready stated. this bill. ir enacted into
law. will accomplish IN the main all
the purposes OF a general income tax
law and at the same time escape the
disapproval Of the Supreme Court as Il
keeps well within the principles laid
down by that court in sustaining the
constitutionality of the corporations
tax law.
How Law Would Work.
"To illustrate the equitable adjust
ment of the excise tax recommended. a
person having an income of less than
$4,000 year would pay nothing, while
person whose business earns $4,000
net would pay no tax IN the first $4,000
and on the second $4,000 would pay
only $50 a year"
Continuing the report asserts that
the burden of "our present indirect
taxation" falls upon people having in
comes of less than $1,000.
"A large percentage Of the customs
taxes" it says. amounting to $780,
s65.662 in 1911 was paid by people
whose incomes did not exceed $4,000
per year. The bill aims TO distribute
more justly the tax burden by shifting
an equitable portion of the taxes to
the shoulde's OF tlxSe Of larger earn
ings. There are no statistics as TO the
number Of individuals, firms and CO.
partnerships in the United States that
would be subject to the taxes proposed
by this bill.
The report calls the proposed bill a
combination of the excise tax Of 1898
and the corporation tax law of 1903,
both of which have been held valid
in all respects by the Supreme Court"
and further urging why it should be
popular says:
Burden on Consumers Now.
"The revenue for the support Of the
government, as raised by taxation, is
now almost equally divided between
customs and excise duties. OF the
s7O1,372,375 taxes collected in 1911 for
this purpose, the customs amounted 10
5000, g65, ,G62, and the internal revenue
or excise duties to $322,529,201 These
taxes are solely on consumption'
Property. and the income from proper
ty as such. pay no part of these sums.
Under system of national taxation
based wholly on consumption, wealth
necessarily escapes its fair share of
the burden OF supporting the govern
ment, which gives wealth the neces-
sary protection under which il in
creases it's gains. ON the other hand,
when he purchases for himself and
family the necessities of life. the man
of meager earnings contributes out Of
his daily wage To the support of the
government.
when citizen pays taxes accord
ing to his earnings, from whatever
source. he gives support 10 his gov
ernment. and receives protection from
il i'm a more equitable manner than un-
der any other plan of taxation yet de-
vised. If his earnings increase his
taxes increase, and Justly so, for he Is
better able to pay increased taxes IL
his gains decrease. so do his taxes, and
fortunately for him, because he is less
able to pay them. There is also this
striking advantage of a tax on earn
ings over taxes on bought and sold
commodities. namely, the rate can be
raised or lowered to- meet the exigen-
cies of revenue requirements without
consequent disturbance of prices