New-York tribune., 1912-03-02

pectedly abandoned all othei
producing schemes for the income TAX
The majority members finally swept
aside plans for increased duties on ruo
her. silks and laces and determined upon
nm excise tax as the best argument with
which to 60 before the poor man VINO
may be willing to exchange MS Vo'e l"
tho approaching campaign Tor cheape.
sugar. and as a thrust at the inuiNluuai
en- fortunate as to make more than So'Voo
year. CO.
n was suggested in the caucus w.
night that the extension of the eAoioo
or cornoration tax might have the ell
foe, of defeating income tax leg'sia'ioi''
a net Democratic plan, now penang pe
fore the states. 2The Democratic leauei7'
however. diSabused the minds oi ti'c w"
hious bv EXPLAINING that the bill agreeu
on tonight is merely supplementary u
the excise law as 1t now exists ana t""'
I, will excellcntly serve it's purpose as
revenue. producer while income tax iegls-
lation waits. and without Jeopa'uiN''e
the chances of income tax acts.
In his statement TO tho caucus repre-
sentative Underwood explained tn"'
while former income tax proposi'io"'
have been declared uaconstituuohai o'
,he Supreme Court, the court mas man"
tained the constitutionality OF an eAcISe
,sx levied on all corporations in the
United States. The Supreme 'oui' nc
decided that Congress has the po"e'
levy a special excise tax on thc u"''9
of a particular business, whether t"''
business is conducted by an lnor i'""'
or a corporation
Louisiana Men Protest
IN the acrimonious tariff discuss'o' '"
The csueus Representative brousSa'"
nounced the free sugar bill as co''"9
catory" Of the great industry "i l'o"'''
no Perresertative RandelL Selid,o'
slact nleaded for moderate reou'..'., .,
e'iSs iISe,arndine the scheme carried IN 'hs
win bills. Mr. Underwood deoistso Cor
,.,rbere has been a general denanu W
,rea sugar. that the high coz. " 1,t,l re-
e,a,, no Tedleed 10 some extent, we ~
oy..T 10 of mis- tax will bring relief 10 an,
,,,atter how humble or poor ana ole
,,.s,s,, ~ 1,.u no shifted 10 those VINO az
,,osseSsed of more than comiortsS9;.e
tsr,unes and who can bear me duu,-
..uonsl tax without serious
ience. ,ban comfort.
~ ,,rtunes'' referred 10 by the oeno-
+rat,c header are such indiyioos's &c
- make more than S9,op Yeal,
ainst whom, the I per cent eN'ise w
income tax viii be levied
undsrwood Explains Measures
.o,.ar Underwood announced TO
tho caucus that he had been olrec'eu ~
~. was and Means Committee to SUD-
nit Hill to place sugar on the tree l'''
ard another bill extending the present
axo,ss tax nov levied by law on cor
i .porations 70 individuals ana copal'ne'
II ships having an income OF more '"'"
' Sn,O00 a year
..rh. hill, removing the taxes levied ct
4 the custom houses on sugar sSlp 'a''
underwood, imported into THIS country
will have the effect Of reducing the price
of sugar TO the consumer about Ia cents
nound." He further said that in the
op,nion of the Ways and Means Commit
tee the large profts made by manu-
factnrers and refiners of sugar have
been due 10 the customs tariff and that
placing sugar on the free list wouia re-
duce the profit, would not destroy the III.
dustry in the United states, but Woulo
result in a saving to the American people
of S107, 100000 year.
s., His statement continues:
The purpose of the excise bill presented
10 the caucus is to extend the tax on 90
Ing Of business by individuals and coparLt,
nerships- The special tax viii aceoInphsh
,hs same result as would have been &C.
complished by an income tax ~ u were
within the power OF Congress 70 enact ,s,a Sa
income tax law so far as raising revenue
is cn1eerned' but at the same time the bill
keers well within the principles laid down
by the Supreme Court 10 ts ! deeislom aSs, -,
arming the constitntpnali'y OF 'fie oo'P''"
The bin does not in any way alter, amend
OF repeal the cooperation tsx law sa v,dos " hIw
that every person, Arm or eopartnershlp
shall be subject to pay annusily specisI
excise tax with respect 10 esrTyIns OF %, OF
doing business by such persons equivalent
"a psr eentum on the entire net income
over and above 5000 received by such per-
son from all sources during each yesf ana
come Of any person there shall not be In
= cluded the amount received from any cor
peration, Joint stock opmpshft or Or asSecis snecisi
excise tax of / per centum now Imposed
p by law has been paid by such corporation
or stock company or insurance company or
In other words. the income derived from
dividends of corporation on which the
TAX is new levied by law will not be- sub
iect 10 a further or additional tax, but in
comes derived from other sources OF busi-
ness tnan thoss named In the corporation
tax act will he subject 10 tax OF | per
cent where the net income exceeds 5000
annually.
II these bills become laws they will have
rc0osied a burden of taxation now borne
By the American people on food product
that all must consume OF slO7,OeGoU and
viii have substituted In place thereof taxes
that will probably aggregate between $50, =
Anoso and SO 0800e1 that will be collected
from persons with an income Of more than
SOC
Provisions Of Sugar Bill.
The sugar bill submitted to the caucus
would eliminate the much discussed
Dutch standard test, and contains the
following provisions;
Sugars. tank bottoms, syrups of cane
Juicc melada, concentrated melada, CON
crete and concentrated molasses' maple
sugar maple syrup refined syrups, glucose
or grape sugar and sugar cane shall be
admitted free ef duty.
saccharine, g. cents per pound duty.
Sugar candy and all confectionery not
specialiy provided for in this act or in the
first section Of the act cited for amend
menf valued az 10 cents per pound or less.
and sugars after Icing refined, when tihet-
sa eSioTes or m any wsy al nye sSsn
vsloYem' The weight and the value Of the
immediate coverings. other than the outer
packing ease or other covering: shall be be
value of the merchandise.
Chairman Underwood's statement then
continues;