The Washington herald., 1912-03-03
SENATE MAY BEAT
INCOME TAX PLAN
Many Progressivesand Demo-
Gratis Said to Be Opposed
to Free Sugar. -
CLARK PRAISES MOVE

1t is evident that the Democratic pro-
posal in the House, through the Ways
and Means Committee, TO put sugar on
the free list and reimburse the revenues
by an extension OF the corporation tax
cannot pass the Senate. Many of the
Democratic Senators are opposed to 1t.
and quite number. Of the progressive
Republican Senator's. Without the votes
of all the Democrats and practically all
Of the progressive Republicans, the free
sugar bill cannot pass.
Some of the progressive Senators OBJ
ject to free sugar because their States
grow beets, and the Importation of raw
sugar free would injure that industry.
Other Senators do not favor the extern
sion Of the corporation tax. They de-
clare that it is simply,a scheme to. post
pone the enactment OF an income tax by
destroying the necessity for it.
shift Tax TO shareholders.
One Senator told of an experience he
had with the corporations in his own
State at The time the. corporation tax
amendment was substituted in the Sem
ate for the income tax amendment He
found himself suddenly deluged with tel
egrams from his State. sent by corpo-
poration tax instead OF the income tax.
He learned that the corporations had
sent him the telegram at the request
Of their correspondents IN New York
City, and he says that he then concluded
that the wealthy men penInd the cor
porations were seeking TO shift the bur
den Of taxation from themselves TO the
corporations, where the shareholders
would have to bear the burden.
Twenty-eiEht States Approve.
At the Treasury Department exception
was taken to the statement of Repre-
sentative Cordell Hull. OF Tennessee. that
the present corporation tax law exempts
holding companies. 1t was explained at the
Treasury that the only exemption allowed
is to avoid double taxation. The holding
company is not taxed on so much of its
holdings as has already been assessed
in the hands Of the subsidiary companies
but on all other holdings the holding
company is subject TO taxation.
The fact came out yesterday in con-
nection with the opposition to income
tax advocates against the proposed ex-
tension of the corporation tax that up
to this time twenty-eight States in the
Union have ratified the income tax
amendment and sent their official noti-
hcaEons to the Secretary of State. Only
eight more States are necessary to the
ratification to engraft the amendment on
the Federal Constitution. The States
that have ratified are the following:
Alabama, Arkansas, California, Colo
rado, Georgia, Idaho. Illinois. Indiana,
Iowa. Kansas, Maine, Maryland. Michi-
gan, Mississippi, Missouri, Montana, Ne
braska, New York, North Carolina, North
Dakota, Oklahoma, Oregon, South Caro-
lima, South Dakota, Tennessee, Texas,
Washington, and Wisconsin.
Clark FavOrS Caucus Plan.
Champ Clark, who as Speaker of the
House of Representatives has been main
ly responsible in forming the present
policy of the Democratic party, yester-
Gay gave cut the following statement on
the adoption Of an income tax and the
abolition Of the tariff on sugar:
Il have been in favor of an income tax
ever since L can recall. A graduated in
come tax, with perhaps exceptions, is
the most just and fairest tax ever
levied. have expressed that opinion hun |
dreds and hundreds of times in Congress
and out, and it is the solution of the tax
question in America.
As soon as that constitutional amend |
ment in favor OF the income tax is rati-
fed, Congress will pass bill for a grad |
uated income tax that will raise a hun
dred millions or more a year, and when |
that is done the tariff can be reformed |
Snd reviewed TO a very large degree, and |
a good deal more SO than We can now l
do il.
''As for the question Of sugar Iegisla-
tion, the bill under consideration by the /
Democrats in Congress will make sugar /
about cents a pound cheaper to the |
consumer.
And as the income tax is levied upon
the people who can afford TO pay the /
tax, while the sugar tax is levied upon
rich and poor alike, the income tax Is
greatly preferable and more use to every
body