The Washington times., 1912-03-16
HULL IN SPEECH
DEFENDS BILL TO
LEVY EXCISE TAX
Tennesseean Refutes Argu-
ments Of Republicans as
to Unconstitutionality.

Following the passage of the free
sugar bill, the House today began de-
bate on the excise tax bill, q companion
measure, which Is expected to raise the
900 loss in revenue which will re-
suit If sugar goes on the free list. The
excise tax bill probably will pass the
House Monday.
Representative Hull, Tennessee
Democrat, who is the father of the plan
to extend the excise tax to individuals
firms and co-partnerships, fred the
opening gun in defense of the Demo-
cratic measure today He refuted the
arguments of the Republicans that the
extension of the excise tax law Is I'M
constitutional and that the measure is
really IAN income tax bilr'
Disagrees With Report.
He also disagrees with the minority
report on the bill which declares that
under its provisions John d. Rockefel-
Ter, Andrew Carnegie, the Astors, and
other large holders of real estate would
escape taxation. Mr.. Hull asserted that
II these gentlemen are engaged in any
business whatever, their entire income,
including those from real estate, must
be taxed.
On this point he said
THE opposition to this bill, plainly
disregarding the plain holding of both
to contend that this tax is in effect an
income tax, and cannot therefore be
measured by incomes derived from real
estate and invested personally, be-
tax could not be laid directly upon such
income, and because the court held in
the case OF Zonne vs. Minneapolis Syn
dictate that under the particular facts Of
that case realty corporation was not
liable for the excise business tax.
This view entirely overlooks the fact
that in the Minnesota case the court
merely held that since the corporation
was not performing a single activity in
respect to the real estate to which 1t
held title merely, not single business
activity in any other respect the COM
pany therefore was not doing bust
ness" and so was not subject to tax.
IF, entirely apart from it's ownership
of this real estate, this corporation had
been engaged in any other kind of bust
ness activities within the meaning of
the term business" the tax would have
been applied and measured from all
sources, including the real estate in
question. This latter rule would apply
to all persons merely owning real estate
or invested personally and performing
no activity in respect thereto. but at
the same time performing business ac-
tivities entirely disconnected there
from"
Analysed Court Decisions.
Mr.. Hull then analysed various SUI
creme Court decisions, such as were re-
fcrred TO in the recent maiority report
on the bill, 20 show that the excise tax
plan as proposed by the Democrats is
not unconstitutional.
Our Republican tariff tax" continued
Mr.. Hull. "for the benefit OF the
Sugar trust, the Steel trust, the Beef
trust. and the Wooden trust and hun.
dredS of other favored and fattened
creatures of privilege. ruthlessly exacts
from every citizen. including the mil
lions who are in a stale Of poverty and
hunger, q tax upon the food he eats and
the garments he wears. 1t is necessary
to thus tax poverty and misery II
wealth Is to escape.
ION the other hand. tho pending bill
does not tax poverty and want, and
does not tax any human being unless
he IL doing business and has net
annual earnings exceeding 5000
TIL Tennessee member expressed the
wish that Congress now had the power
TO enact graduated income tax. In the
absence of such power, however, pend
ing a constitutional amendment, the
ways and Means Committee determined
upon an extension of the corporation
tax to equa1ize taxation burdens and &c
compensate for the loss which will &C
cTue II sugar is made free.
The free sugar bill passed the House
last night by a vote of 1893 to 103 Twen-
ty-four Republicans voted with the
Democrats on the final passage of the
bfl and seven Democrats, from Louis
lana and Colorado, large sugar produc-
sing States, voted against their party s
measure.