Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1912-03-05
SALARY TAX BILL
IS BIGGEST ISSUE
BEFORE CONGRESS-
Democratic House will I'm
queStionabIy Pass It--Fate
in the Senate Is Still Uncef-
tain
(By Associated Prsss.)

(By Associated Prsss.)
WASHINGTON, March 2--House and
senate leaders Of all shades of political
belief gave themselves over today to a
discussion of the sensational action Of
the house Democratic caucus last night
in indorsing what is in effect an in
come tax on all net incomes, including
salaries above $4,000 a year.
That the house will pass the measure
by a party vote within the next ten
days or two weeks was taken for grant
ed. Discussion, therefore. turned large
ly on the reception the bill would get~in +.
the senate Its fate there seems doubt.
full
PLANS OF THE HOUSE
Plans of the house leaders had not
been wholly disclosed today, but 1t was
apparent that the bill to extend the
excise tax law now relating to cor
porations so as to include co-partner-
ships and individuals, was to be urged 4
upon the house ahead of the bill to put
sugar on the free list. The latter bill
of course. shares in the debate on the
so-caned income tax. for it was to
make up the deficit OF more than $780,
100000 to be lost in customs revenue
on sugar that tho new taxing measure
was devised The Democratic leaders
want TO be sure that the deficit will be
provided for before the duty is re-
moved.
REPUBLICANS SURPRISED.
The new plan of the Democrats took
their Republican colleagues entirely by
surprise. Many of them had not re-
covered sufficiently today to be willing
to talk for publication. Every BODY agreed
that the debates in the house and SEN
ate on so radical change in the method
| of raising government revenues would be
the stormiest Of recent years. The con-
| stitutionality Of the new plan, it was
1 said, would he attacked by some repre-
sentatves and senators. although the
Democratic house leaders claim the
measure has been so drawn as to COM
ply with the supreme court decision up
I holding the corporation tax law. That
decision, it was pointed out, held that the
corporation tax was not a tax on a
| franchise, but on the privilege of doing
/ business. The new bin holds that work
ing for, salary is Just as much man
ner of doing business as investing money
in an enterprise.
! PARTY LINE BREAKING.
| In the senate it is said that in an
| probability party aHgnments will be
broken although party leaders make no
such concession publicly. Senator
/ Smoot, of Utah, member of the senate
the biiI, declared there was no-N4s6ssi1
bility Of the measure passing the SEN
ate.
is 1T CONSTITUTIONAL
Il do not believe said he. that any
Republican senator. regular or insurgent
/ or that many Democrats, viii stand for
| this measure that would destroy a great
/ industry. The income tax proposition
is absolutely unconstitutional. To cali il
/ an excise tax instead of an income tax
that has already been declared unconsti-
/ tuional by the highest court in the land
is simply quibbling on words. It is an
| income tax pure and simple"
Senator Kern, of Indiana. said that
| the measure was a good one.
II am, and always have been, in favor
of an income tax" lie said. II also am
in favor of free sugar"
MARTIN is FOR 1T.
Senator Martin. of Virginia, Demo-
/ cratic leader of the senate. undualifedly
declared for the bill, framed by his par
ty in the house.
.'The measure he said, sis ,eminentIy
wise and ought to pass. There is no
doubt In my mind as to its constitutions
atty"
4 Senator Poindexter, of Washington.
progressive Republican, said:
IT am very much in favor of an in
come tax. I have been favoring 1t for
years"
Senator McCumber. OF North Dakota,
| a member of the senate finance commit
| tee, EXPRESSED doubt if any change IN
the tariff on sugar would make any
difference to the consumer. He said
that the income tax proposition was
lost in the supreme court by very
much of a divided court" and that the
constftutionality of an income tax was a
difficult matter to determine.
| personally" he added, II am inclined
to think that congress has the power to
levy such a tax"
WHAT BACON SAYS.
i Senator Bacon, of Georgia, one OF the
| Democratic leaders Of the senate, who
! did not attempt to speak for his party.
said that il the bill passed the house
it would find Sufficient support in the
/ senate"