Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1912-03-05
House Expected to Adopt
Measure Taxing Salaries
Favored by Caucus as Ri
der to Free Sugar Bill.
REPUBLICANS SAY 1T
Is UNCONSTITUTIONAL
Democrats, However, De-
clare Income Bill Was
Drawn to Comply with
Corporation Tax Decree.

| Drawn to Comply with
Corporation Tax Decree.
Washington, D. c., March 2.-House
and senate leaders of all shades of
today to a discussion of the sensation
Gus last night in indorsing what Is in
effect an income tax on all net in
comes, including salaries, above $4,000
a year. " s... VII.
That the house will pass the mea-
sure by a party vote within the next
ten days or two weeks was taken for
granted. Discussion therefore turned
largely on the reception the bill will
get in the senate. It's fate there seems
doubtful.
The plans of the house leaders had
not been wholly disclosed today, but
it was apparent the bill to extend the
excise tax law not relating to cor
porations so as to include co-partner-
ships and individuals, was to be urged
on the house ahead of the bill to put
sugar on the free list. The latter
bill will CT course share in the debate
on the so-called income tax. for it was
to make up, the deficit of more than
$50 900 600 to be lost in customs rev.
enue on sugar that the next taxing
measure was devised. The democratic
leaders want to be sure that the de-
felt will be provided for before the
duty is removed.
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. Everybody
agreed thai the debaters in the house
| and senate on so radical change in
the method Of raising government
Irevenres would be the stormiest Of re-
cent years The constitutionality of
! the new plan. it was said. would be
attacked by some representatives and
J senators although the democratic
lenders in the house claim the measure
! has been so drawn as to comply with
! the supreme court decision UNFOLDING
; the corporation tax law. That deci-
sion. 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 bill holds that
working for a salary is just as much
manner of doing business as invest
ing money in an enterprise.
Senate Leaders Discuss Measure.
In the senate it is said that in all
probability party alignments will be
broken, although party leaders make
no such concessions publicity. Sen
sator Smoot of Utah, a member Of the
senate finance committee which will
deal with the bill, declared there was
no possibility OF the measure passing
the senate.
az do not believe" he said, that
any republican senator, regular or
insurgent, or that many democrats,
will stand for this measure that would
destroy a great industry. The income
tax proposition is absolutely unconsti-
tional. To call it an excise tax instead
of an income tax that has already
been declared unconstitutional, Is
simply quibbling on words. 1t is an in.
come tax pure and simple
p, Senator Kern of Indiana, who was
democratic candidate for vice presi-
dent in the last national campaign,
said the measure is good one.
Il am and always have been in favor
of an income tax" he said II also
am in favor Of free sugar
| 1.-THE measure is eminently wise
and ought to pass" said Senator Mar
tin of Virginia, democratic leader in
the senate There Isl no doubt in my
mind as to its constitutionality."
Senator Poindexter, of Washington,
progressive republican, said: II am
very much in favor of the income tax.
l have been favoring it for years..
Sees No Difference to Consumer
Senator McCumber 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 said
that the income tax proposition was
! lost in the supreme court of the Uni
1 ted States by very much of divided
court" and that the constitutionality
of an income tax was difficult mat
ter to determine.
Personally he added, 81 am in,
clined to think that congress has the
power to levy such a tax
Senator Bacon of Georgia. who did
not attempt to speak for his party,
. as he had no opportunity to talk with
any senators regarding the bill, pre-
dicted that if the bill passed the house
| it would find sufficient support in the
senate
Will Reduce Cost to Consumer.
| Placing sugar on the free list, the
Democratic leaders estimate. will re-
duce the price>of sugar to the consumer
about cent and half a pound.
| The secret that members OF the wayi;
and means committee had been so
| closely guarding for several days was
| the provision to extend the corporation
i tax. In the caucus that bill was not