Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1912-03-14
UNDERWOOD ARGUES
CONSTITUTIONALITY
OF INCOME TAX
PROVISION
Report Of Ways and Means
Committee Recommends the
Taxation Of All Incomes
Over $4,000 Per Year.
BILL DRAWN TO MEET
SUPREME COURT DECISION

tny Eveaing Ftessis A. T.. Leased wIreD
Washington. March Maintain
ing the eonstitutionality or the pro-
posed excise tax bill. extending pro-
visions OF the corporation tax law Ia
individuals and O-partnershlps. SUBJ
mItted as a revenue measure 20 re-
place customs duties on sugar Repre-
sentative Underwood. chairman of the
ways and means committee. made a
report to the house today. urging the
passage Of the bln
After arguing the constitutlonality
Of the proposed iaw, procloiming II In
absolute conformity with supreme
court decisions relating 10 the income
tax. the report explains the provisions
ana scope OF the measure as II would
affect individuals.
while the bill," says the report.
"embodies a new application OF taxes
Il carries all the modern philosophy
of taxation. n proposes to obiige the
citizen 20 contribute annually a fair
and Just portion Of his net gains to
the maintenance OF the government.
ITO illustrate the equitable adjust
met of the excise tax recommended,
a person having an income OF less
than $4,000 per year would pay Moth
ing, while a person whose business
earns $4,000 net would pay no tax
on the first 5000 and on the second
$4,000 would pay only $50 year"
The report calls the proposed bill
combination OF the excise tax OF
1855 ana the corporation tax law OF
1909. both Of which have been held
valid In all respects by the supreme
court"
That the proposed tax Is constltu-
ti0nal. the ways and means commits
tee Democrats believe. for the follow
iae reassnss-
fsrhe proposed tax is not a direct
tax upon the property. real or per-
sonal. Of the copartnerships or ind-
vlduais, but a special excise upon
carrying on or doing business by such
copartnerships or individuals anu it,
therefore. needs no apportionment
among the states, according % popu-
lation, as required by the constita-
tlon with reference to direct taxes
The proposed tax is uniform
throughG,.t the United States II itl
be true that the tax Is an excise, It's
Indirect character is az once estab-
lished.
THE proposed tax Is an excise be-
cause the tax II legislatlvely intended
as an excise, as shown by the plain
language OF the bill.
r'The subject OF the tax Is the con-
duct or transaction of business which. |
90 a uniform line Of deci- |
sions by the supreme court OF the
United states, Is a proper subject OF
excise tax.
s'The fact that the tax is 60 be
by the net income OF the
taxable person or firm does not
change it's real character"
Representative Longworth present.
ed a minority report.
SPLIT
ON FHEE SUGAR
A split In she Democratic ranks REQ /
suited today when the house took up |
the free sugar" bill Democrats
from the cane and beet sugar pro-
ducing states had prepared speeches
against the measure. They contend /
"a that the bin meant the end OF the |
American sugar growing industry.
Chairman Underwood Of the ways
ana means committee made known /
his intention 20 end general debate
md late tomorrow or Saturday the 1
measure Is expected TO pass.
The Republicans are prepared /
when debate Is ended TO ask for the
Of the bill.