The Birmingham age-herald., 1912-03-03
Interest Centers on Action the Senate Will
 1ohS
REPUBLICANS ARE
 MUCH SURPRISED
Democratic Leaders in the Senate Believe the Twin Measures Wiii Pass Wm. J. Bryan En-
 tireIy Approves Measure

Uashinrton. March 2.-The House is ex- nected to begin discussion of the dem ocratie bill to levy an excise tax on all net incomes above 5000 year, including salaries, by Wednesday or Thursoay heAt, It will be reported from the ways anu means committee with the bill to put sugar on the free list. The two meas ures probably will be considered jointly and both will be passed within a week or ten days.
 The known success of the two measures in the democratic House turned all dis- cussion today to the Senate where It was admitted both bills would have a temp estuous career. In the Senate the pilis i will be referred to different committees and with many senators unfriendly 10 them there is little likelihood that they can Abe linked together, as is proposed in the House
 The so-calIed income tax, or extended corporation tax bill, under the Senate rules, will go to the committee on Judi- ciary, where it is said it, will meet an unfriendly reception. The free sugar olil will go to the finance committee. Senate E leaders declared tonight that the finance committee hardly would feel justified in reporting bill cutting off more than soo,- 2 coo, 900 in revenues without knowing what the Senate proposed doing with the in- come tax bill, looked to 10 make up the difference. On the other hand it was said members on the judiciary committee would not be easily convinced of the ne- cessity of the new taxing measure in the absence of the passage of the sugar bill and the consequent deficit in the revenues. Leaders Discuss Question 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 income tax on all net incomes, includ- ing salaries, above s5ooo per year, Plans Not Disclosed Yet
 Plans of the House leaders had not been wholly disclosed today. but it was .appar- st,4 fhsas .4-.-.reru ssxteriu tue excise tax 2 4 x TOW relating 10 corporations. so as to Include copartnerships and individuals, Twas to be urged upon the House ahead Of ahe bill to put sugar on the free list.
 
 the so-called income tax feature. It was to make up the deficit of more than s5o,- 0ou.Oo0 to be lost in customs revenue on sugar that the new taxing measure was devised.
 The democratic leaders want to be sure that the deficit will be provided for before the duty is removed.
 Republicans Surprised
 The new plan of the democrats took their republican colleagues entirely by surprise. Many of them had not recovered sufficiently to be willing to talk for publi- cation. Everybody agreed that the de- bates in the House and Senate on cru Eciai change in the method of raising of recent campaigns
 The constitutionality of the new plan. 1t was said, would have to stand the at- tack of many leaders. The measure has been so drawn to comply with the su- preme court decision upholding the cor porstion tax law.
 It was pointed out the decision held the corporation tax was not a tax on a franchise, but rather on the privilege of doing business.
 The new bill holds that working for a salary is just as much a manner of doing business as investing money in an enter iprise. In the Senate it is said that in all probability party alignments will be broken, although party leaders make no such concession publicly.
 Leaders Comment
 Senator smoot of Utah. a member of the Senate finance committed which will deal with the bill declared there was no ; possibility of the measure passing the Sen ate.
 .sI do not believe he said. that any republican senator, regular or irregular or that many insnrgent democrats will stand for the measure, one which would destroy great industry. The income tax proposition is absolutely unconsti- ttltional.. To call it an excise tax instead of an income tax that has already been declared unconstitutional by the highest court in the land, is simply duibbling on words. "It is an income tax pure and simple"
 Senator Kern Senator Kern of Indiana said that the measure was good one. e-s"I am and always have been in favor o. an income tax" he said. "T also am in favor of free sugar."
 Senator Martin of Virginia. demo- cratic leader of the Senate, unauali- tiedIy declared for the bill framed by
  measure is eminently wise and ought to pass"
 There is no doubt in my mind" he said. "as to it's consttutionaiity"
 Senator Poindexter of Washington, progressive republican, said
 T am in favor of an income tax l have favored it for years
 Senator McCumber
 Senator McCurnber of North Dakota. a member of the Senate finance com mittee, expressed doubt if any change in the tariff on sugar would make any difference to the consumer He sail that the income tax proposition was lost in the supreme court "by very much of divided court" and added Athe constftuticnality of an income tax kas difficult matter to solve
 "Personsliy." he added, T am in clined to think that Congress has the power to levy such tax" Senator Bacon of Georgia one of the democratic leaders of the Senate. who i did not attempt to speak for his party | said that if the bill passed the House l il would find sufficient support in ptbe Senate" The extension of the corporation tax
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