The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-03-06
ceeds $4,000 annually"

people on a food product that all must
consume Of s1O7,OOO,OOO, and will
have substituted in place thereof
taxes that probably will aggregate be-
tween s5O,OOO,OOO and S6O,O0O,OOO
and that will be collected from per-
sons Of an income of more than S5,-
OOO."
The sugar bill submitted to the
caucus would eliminate the much dis
cussed Dutch standard and contains
the following provisions:
Sugars, tank bottoms, syrups o1
cane juice. melada, concentrated me-
lada. concrete and concentrated mo-
lasses. maple sugar; shall be admit
ted free of duty.
"Saccharine, 65 cents per pound
duty.
Sugar candy and all confectionery
not specifically provided for in TINS
act. or in the first section Of the act
cited for amendment, valued at 10
cents per pound or less, and sugars
after being refined or adulterated,
cents per pound valued at more than
Is cents per pound, 25 cents per CEN
tum. ad valorem. The weight and the
value of the immediate coverings,
other than the outer packing case or
either covering, shall be included In
the dutiable weight and the value of
the merchandise"
Chairman Underwood's statement
then continues:
"The removal Of all taxes at the
custom house will Of course reduce
the revenue that the government
needs by 52,00O,OO0, and it was nee
essary for the committee on ways and
means to provide other sources or
revenue to take the place Of the loss
from the removal Of the taxes on
sugar. To accomplish this result. the
ways and means committee deter
mined to present to the caucus bill
extending the present excise tax on
corporations to individuals and CO.
partnerships.
"The supreme court, nothwithstand-
ing its former decision, holding that
an income tax was unconstitutional,
has maintained the constitutionality
Of an excise tax levied on all corpora
tions doing business in the United
States The Supreme court has de-
cided that congress has the power to
levy a special excise tax on the doing
of a particular business whether that
business is conducted by an individ-
ual or a corporation, and in the case
Of Flint ver-'-- the StoneTracy COM
pany. in VII they held that the cor
poration IA. -as constitutional, they
decided tina }ngress had the power
TO levy a sp,c.a u excise tax on the do
ing Of all business by corporations.
"The purpose OF the bill presented
to the caucus is to extend the tax on
doing Of business by individuals and
copartnerships. The special excise tax
will accomplish the same result as
would have been accomplished by an
income tax law so far as raising the
revenue is concerned, but at the same
time the bill keeps well within the
principles laid down by the supreme
court in its decision affirming the
constitutionality Of the corporation
tax law.
Under the present law persons
who have their money invested In cor
porations that are employing labor
and developing the country are taxed
per centum on the net earning OF
the corporations.
why is it not equitable and just
to impose a similar tax on individuals
whose money is invested in lines of
business not organized as corpora
tions? Under the present law the
stockholder in corporation is COM
PEELED to pay a tax and the bond
holder, who as a rule takes little or
no risk in the business, is not taxed.
If the bill becomes law. the bond
holder can be taxed os the same basis
as the stockholder. The levy Of this
tax is not excessive; a man having an
income Of $4,000 would pay no tax
on the first $4,000 and on the second
$1,000 wocld pay only $50 a year.
and yet from the estimates made we
feel assured that the levying of this
tax will produce revenue for the
government that will equal that lost
by the repeal Of the tax on sugar
1.-The present corporation tax raises