The Birmingham age-herald., 1912-03-02

.,~n,,~stions were laid before the caucus .,;.. &se uniting sugar on the free list the s6s ar levying an excise tax or r,ar cert on the incomes of corporations vybasa ,et income is 5000 and upward Gper rear.
 Chairman Underwood made statement 4o lie caucus that he had been directed The ways and means committee to
 hit a bill to put sugar on the free and another bill extending the pres
 tax now levied by law on corpora Sns to individuals and oo-partnerships laying an income of more than 5000 Year. .-..'.-'.
 Will Reduce Sugar teThe bill removing the tax levied al the custom houses on sugar. said MT. Underwood, imported into this country f5 will have the effect of reducing the price t of sugar to the consumers about lls eeh's pound" The statement states In the opinion or the committee the large profits made by },nanufacturers and refiners of sugar nave been due to the customs tariff and that lplacing sugar on the free list would re- duce the profit, would not destroy the Sindustry in the United States, but would 
 ple of $io7,0oo.ooo
 sIhe purpose of the excise bill pre- lsented to the caucus" Mir. Underwood fa,d. ais to extend the tax on doing of S1tlsiness by individuals and co-partnership. Inc sneciaI tax will accomplish the same
 ult as would have been accomplished i. an income tax if 1t were within the mer of Congress to enact an income ie5,, roN h. lined. but at the same time the bill
 bps well within the principles laid down
 the supreme court in it's decision af- lining the constitutionality of the cor (f tation tax law.
 Corporation Tax Law Intact
 .,rhe bill does not in any way alter. amend or repeal the corporation tax law as 1t now stands on the statute books, but provides that every person, hrm or co-partnership shall he subject to pay an nuSlly A special excise tax with respect tos lsarrving on df- doing pu7t~s rs " 7s,. A.{1 7, 1s.t,ssfs.,t < fier. t'Yl't osi sns , [nsnme over and above soeoO sseedSby such person from all sources sources
 ling easb ,ear, and further proVldes
 | in computing the income of any per
 there shall not be included the amount
 eived from any corporation joint stock
 npany, or association or insurance con- ,pafiy if the special excise tax of per 4 cent now imposed Dy law iidS bSeiA pe.'Nt ,by such corporation or stock company or insurance company, or association. No Additional Tax .In other words the income derived from .dividends of a corporation on which the ktax ia now levied by law will not be sub iec4 to a further or additional tax but h. comes derived from other sources of busl- ness than those named in the corporation Lax act will be subject to a tax of | per ent whereby the net income exceeds s99Oo aaually."
 me statement further says
 That if these bills become laws they rh have repealed burden of tax sinu now borne by the American peo- ,e on food product that all must ' bnstn,e of s107, 100000, and will have b1hsfituted in place thereof taxes that jrobably will aggregate between S50,- go00o and s60, 100000 and that will be collected from persons with an income Of more than S5oo0"
 The sugar bill submitted to the cau- tus would eliminate the much discussed ' Dutch standard test and contains the following provisions;
 Provision of Schedule
 Sugars. tank bottoms syrups of cane i duite melada, concentrated melada, consrete and concentrated nolasses, maple sugar. maple syrup, rS@ned syraps, glucose or grain sugar a. ~ .SuEar cane SIdll De dumlILeQ ITfe or duty.
 ..taccharine 65 cents per pound duty Sugar candy and all confectionery moi specially provided for in this act or in the first section of the act cited for amendment valued at 10 cents per po,lnd or less and sugars after being 1efned when tin cured, colored or in any way adulterated, cents per pound: valued at more than Is cents per pound. 25 per cent ad valorem. The ( n, oft,a .f tla it,,,., coverings other than the outer pack inu case or other covering, shall be included in the dutiable weight and the value of the merchandise'
 chairman Underwood's statement then continues:
 eThe removal of all taxes a the GUS tom houses will, of course, reduce the revenue that the government needs by s5s,000 000. and it was necessary for the committed to provide other sources of revenue to take the place of the loss from the removal of the taxes on : sugar To accomplish this result the ways and means committee determined to present to the caucus bill extend ing the present excise tax on cor porations to individuals and co partner ships.
 Tax Law Is Valid
 '.The supreme court, notwithstanding its former decision holding that an in- come tax was unconstitutional has maintained the constitutlonality of an excise tax levied on all corporations doing business in the United States The supreme court has decided that the Congress has the power 10 levy spe- ciai excise tax on the doing of a par ticular business. whether that business is conducted by an individual or a cor poration, and in the case of Flint vs the Stone Tracy company. in which they held that the corporation tax was constitutional they decided that the Congress had the power to levy a spe- cial excise tax on the doing of all business by corporations.
 '.The purpose of the bill presented to the caucus Is to extend the tax on doing of business by individuals and copartnerships. The special excise tax \ will accomplish the same result as Il would have been accomplished by an w income tax if it were within the power | Y of Congress to enact an income tax law so far as raising the revenue is | cosrcrned, bat at the same time the | biH keeps well within the principles