New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-28
DEMOCRATS PREPARE
TO PASS INCOME TAX
Mr.. Hull Drafting a Measure
Intended to Reach All Above
$1,000 a Year.
AIMED AT GREAT FORTUNES
Bill Expected to Supplant Cor
poration Tax Law and Elk
tension, and Produce at
Least S1O0,000,000.
From Tn. Tribune Bureau

From The Tribune Bureau
Washington. Nov. IA bill for full-
fedsed income tax, imposing tribute on
both earned and unearned incomes above
s. 900 per annum, is now being prepared
by Representative CoTdell Huh, a Demo
cratic member OF the Ways and Means
Committee and author Of the bill extend
ing the corporation tax which passed the
House last session.
This bill is being drawn IN the expecta-
ton that two additional states will raufy
the income tax amendment early next
year and that II will be companion 10
Democratic tariff revision measures.
While the members OF the Ways and
Means Committee have not passed on the
Huh plan, their previously expressed
views justify the belief that the measure
will provide. in brief:
A per cent tax on all earned incomes
above 5000.
A ~ per cent tax on all unearned III
comes above that exemption line.
Probably a graduated tax above Tx per
cent on unusually large incomes, in
Guiding revenue from dormant fortunes
and great real estate holdings.
To Hit Big Fortunes.
1t is the Democratic idea that the bill
shall be so drawn AS to apply without
qualification or opportunity OF evasion to
the fortunes of such men an Carnegie,
Rockefeller the Astors, the NanderblbS
and the Goulds, whether those fortunes
are in an active or an inactive state.
Representative Hull once said in a
speech devoted TO the necessity for a
genuine income tax:
will it be longer insisted by the
spokesman of privilege that eNpatriated
patriots like william Waldorf Aston
shall be permitted TO continue their resi-
dence abroad, while their landed ana
other estates remain here, under the pro-
lection OF our government, without the
payment of a faIthng Of revenue
During the last session OF Congress the
Ways and Means Committee adopted, al
most without change, the excise tax en-
tension bill prepared by Nh. Hun At
this time Mr.. Hull has no actual commits
sion from the committee to frame an In
come tax measure. but he Is at WORK on
such q bill. and q will he presented to ms
colleagues early IN the approaching seS-
sion.
Mr.. Hull has made special study or
the income tax system OF other countries
for years, and 81 is regarded as practically
certain that the bill he drafts VIII be sp-
proved in substance by the committee.
He inciines 10 higher tax on unearned
than earned incomes and he also fsvors
a gradually increasing tax on incomes
from swollen fortunes.
To Produce Many Millions.
The Democratic House, committed 10 a
tsrff for revenue and consequent loss
OF customs receipts, regards the income
tax bill as the proper medium for supply
ing much of this lost revenue. An am
Official estimate Ia that an income tax
such az Mr.. Hull will propose will BRING
I'm from $40. 900 600 10 5000 90 year. In
Guiding the amount now collected through
the corporation tax.
Assuming that two additional states
rstliy tho income tax amendment early
next year. il is proposed TO have the In
come tax bill supplant both the existing
corporate tax law and the Underwood
measure extending the scope OF the cor
poration tax, which passed the House
last session. The Underwood measure
was made companion bill to the Demo
cratic free sugar bill. and was alleged to
be revenue producer to the extent OF
approximately XOGo.ooo
The question of free sugar again hobs
ND TO piague the Democrats OF the House,
u,bo aya not certain that such a measure
can pass the protection Democrats" In
the about evenly divided Senate: but, re-
gardless Of sugar revision, an income tax
bill will be ready az soon as the neces-
saTy number OF states act.